Competition for critical mass

In the massively connected communication environment of the Internet, critical mass cannot be treated as a permanent asset. It is highly vulnerable to competition and changing circumstances and can disappear virtually overnight.

Unlike the world of bricks and mortar, people can easily and rapidly change their patronage if a new technological development outdates a business system or a competitor offers something better or cheaper. The only way to safeguard against this eventuality is to have a system that has low overheads and is extremely flexible and adaptable.

Low overheads will make it difficult for a competitor to compete on price. It will also reduce burn rate if the system has to adapt to any new and unexpected turn of events where critical mass is temporarily lost.

If a business system has a modular structure – such as a living database with many different meeting places – it is unlikely that all the modular sections will be affected simultaneously if critical mass is threatened. This will provide some stability to keep the business running while a strategy of recovery or adaptation is taking place.