When one industry segment which had few startups and then finally consolidation happens with leader emerging the focus is market penetration and customer acquisition becomes the top priority.

This process is taken by following entrepreneurs who are also operating in same industry segment and keeping in mind that customer acquisition is the only way forward and hence wants funds.

Lets take example of laundry services startups, This segment which is new and up coming starts getting in funds for few laundry startups which had either unique model or providing unique service to end users. Then comes few startups getting funded and start providing discounts and advertising. Then it becomes known that customer acquisition is what the company is looking at.

The other entrepreneurs who also start after having seen success in the form of investors investing funds in to laundry start ups, suddenly there is mushroom growing across the land where in every person wants to set up a startup in laundry and is planning to raise funds.

As major of the initial first mover advantages having got funded and the lot of PR that happens where in the details of business model are brought out, the next followers come in with same model and start looking for funds, where in pitching to investors and saying when that company can do even we can do.

First the startup has to generate traction based on the core business model and the service or the product it is offering and having reached acceptance point is where in the strategy of customer acquisition makes sense rather than just having customer acquisition as the main strategy.