The top three links on the first page of most Google searches take ~60% of the overall clicks. (A quick search will show you a number of studies with more research.) I’d bet that these numbers probably hold true for internet startups as well.If you’re building an internet company today, you’re not competing against the other team trying to build the same thing — you’re actually competing with all the noise out there.
Target a niche, launch the MVP early, iterate often and find product market fit as fast as humanly possible. After that, focus on distribution — traction is defensible and, more importantly, you need to be within the top three products within your niche.
The winners take most of the market, everyone else gets the scraps.