This is a genius strategy. There are many examples and not just in tech. Brands do this to their manufacturers, for example.https://twitter.com/patrick_oshag/status/1275813669721473030 …
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Yes, strong moat, but you don't need a big business. This works in niches. I have done this almost two times. One time definitely and one time about 60-70% of the way (it's hard).
Good point Moats are stronger in niches
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