That&#x27;s only if that distribution channel is your only access to the customer.  If you have other alternatives, you can (and often will) still win.<p>Google Videos vs YouTube.  Orkut vs Facebook vs Google+.  Facebook status messages vs Twitter.  Google Offers vs Groupon.  Google Flights vs Kayak or Hipmunk.  iMessage vs Whatsapp.  Google Local vs Yelp.<p>There&#x27;re plenty of examples where the big company came out with a competitor (often getting to market <i>first</i>, eg Google Video or Orkut), stuffed it through the distribution channel, but lost to a startup that nailed the user experience.  Having a big channel doesn&#x27;t matter if your conversion rate sucks.