As a company, you throw resources (money) at solving a particular problem.
You are hoping that as a company, you can accrue enough customers to cover that spend.
Should another company come in and then disrupt your efforts, you have two choices. Either hire more engineers and develop more features, thus incurring more costs. Or you lower your pricing and hope your competitor is bleeding faster than you are.
As a company with a black hole, if another competitor isn't bleeding and pushing out more features and gaining your customers. You'll then do something drastic like buy another company.
This is what actually happened in that space. The only problem, is that it shows your competitors you have no ideas left. The company is effectively a zombie. It will collapse, it's a only matter of time.
As a company, you throw resources (money) at solving a particular problem.
You are hoping that as a company, you can accrue enough customers to cover that spend.
Should another company come in and then disrupt your efforts, you have two choices. Either hire more engineers and develop more features, thus incurring more costs. Or you lower your pricing and hope your competitor is bleeding faster than you are.
As a company with a black hole, if another competitor isn't bleeding and pushing out more features and gaining your customers. You'll then do something drastic like buy another company.
This is what actually happened in that space. The only problem, is that it shows your competitors you have no ideas left. The company is effectively a zombie. It will collapse, it's a only matter of time.