Most of the discussions over competition center around startup v/s big corporates, and the competitive edge people cite is the ability of startups to move quickly. That's all fine. But what is the competitive advantage in a startup v/s startup battle, considering that one of the startups has a decent money in the bag. How does the other one go about it then ? What advice would you give ?<p>There is a Quora question about the same concern:
http://www.quora.com/Startup-Advice-and-Strategy/How-do-you-compete-with-other-startups-not-large-businesses
I would say that money can buy them maybe time (multiple workers = more hours on a project) and maybe some advertisement. But I think they cannot really buy a product. Not literally, but I mean that because they have more money doesn't mean that their product will be for sure better than one created with less money. If you create a product that people will like more than your competitor you might relay on the word of mouth to spread, which is the most powerful marketing tool. Find their weakness, what their product is missing that their audience wants and possible wanted for a long time, and give it to them.