TLDR: Atlassian & Trello are the perfect disruption case study

by Mitt Tarasowski (these highlights provided for you by Annotote)

Atlassian bought Trello for $425 million not because of its brand or its user base, but because Trello was a big threat to the company’s future.

Fog Creek launched Trello in 2011, and six years later sold it

By moving upmarket, Atlassian created a vacuum at lower price points into which competitors with disruptive technologies could enter. This is what Trello did. Trello created a cheaper, simpler, and smaller version of [Atlassian’s] Jira. It marketed its product to segments of customers, such as marketers, designers, and managers, which weren’t a focus for [the incumbent].

Jira became expensive. But its mainstream customers would accept fewer features for better pricing.

[CEO, Atlassian:] All companies fit into one of two buckets: either becoming a software company or being disrupted by one. Every industry is being fundamentally altered by software.

Companies that entered the market first were six times more likely to succeed than those that entered later.

#first mover advantage