Right, but this relates to a business venture where you can easily spot where there is a market. Thus, it is wiser to enter the market where you are sure there is one than breaking in new markets by yourself.
Well, it very much depends. If you are the new bakery guy in a street with three or four other bakers, you are entering a market of high competition. The other three bakers are competing perhaps at extreme levels already, whether through branding, building a loyal customer base by providing better customer service, better products, a nice environment, friendly bakers, and price certainly.
Now, if you, the new kid on the block, enter this highly competitive market, you need to be extremely clever to be competing while not loosing money and, if so you manage to compete, they would probably copy you before they die themselves.
If however you decide to take a little bit more time upfront and invest more effort to find a place where your service is needed and there is little competition, you'll be making healthy profits. That is why copying does not win in the long term and even the company in question has now had to start to make their own products.
