from the welcome-to-competition dept
A great example of this is the failure of Microsoft Money. The company has now announced that it's going to discontinue the product despite years of effort and millions of dollars spent to try to defeat Intuit's Quicken product. In fact, the saga of the battle between Intuit and Microsoft highlights (yet again) that it wasn't so much the invention part that allowed Intuit to win the battle, but the innovative way in which Intuit kept and grew marketshare. In an interview with News.com, the guy who ran Microsoft Money for a few years, noted that Intuit beat Money because they did a better job with the marketing.
Meanwhile, of course, it's worth noting that Intuit itself is now facing upstart challenges from web-focused startups like Mint and Wesabe, and some believe the company is discovering in its own way how smaller, more nimble startups can succeed against larger entrenched interests. Innovation is an interesting beast. The idea that big companies can always defeat smaller ones has been disproved many times -- but here's yet another example.