I am currently reading this book called Zero to One by Peter Thiel and found this quote interesting.
“Superior sales and distribution by itself can create a monopoly, even with no product differentiation.”
Excerpt From: Peter Thiel. “Zero to One: Notes on Startups, or How to Build the Future.”
Found this pattern to be true in the case of mutual funds – there are about a hundred funds with very little differentiation – each claims to be different but there is a huge overlap in the portfolio of the funds belonging to a given category, with marginal difference in the returns, and yet their AUM varies from few hundred to a few thousand crores.
Sales is most definitely the differentiator.