No. of Recommendations: 0
It is very rare that the large incumbent takes out the business of a well established front runner first mover in a new business line.

Netscape...yeah, yeah. That is because Microsoft also had a monopoly on computer desktops and since the browser had zero marginal costs for Microsoft they gave their browser away for free. Tough for Netscape to compete in that manner when Microsoft can use its monopoly power, with practically zero costs, to simply give away a multi-billion plus product just to destroy a competitive threat. Rare circumstance.

Why don't we say that Adobe will take down TTD as well, or that Amazon will take down SHOP, etc.

For me Adobe is not a big concern.

Here is how I see Docusign - they have potential unanticipated upside. If they succeed that potential will increase the multiple and propel the business. Thus why one invests in Docusign. Adobe is not going to impact Docusign's business anymore than it currently does and what it does is already in the share price. Not too much care or concern there because of this.

Sure Adobe can include signatures and SoA for free in its Adobe products, but why? Docusign is not an existential threat to Adobe. Any business Adobe wants to do with SoA or eSignatures will be done with a legitimate profit motive and not to kill a competitor with no thought of profit. As such Adobe's largest threat is bundling things together.

However, how often have you actually used bundled software that comes in the package? Usually that is an after thought. Adobe would have to specifically price bundle the functionality as part of the entire contract. If that is profitable, perhaps Adobe will do so, or perhaps they already are doing so. To date however they have not been anymore successful than they currently are.

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