It's quite established how to answer this question. More specifically, it's a classic strategy question (with a lot of marketing in it). You should look up what broad theory is applicable. My take (have an MBA or equivalent) is to look at differentiation, segmentation, resource based strategy, feedback loops and platform theory, Porter's five forces with critique, a static VS a dynamic perspective.
If you can find a viable (hopefully quite sustainable) strategy, go for it. If you can't, then don't.
It's quite established how to answer this question. More specifically, it's a classic strategy question (with a lot of marketing in it). You should look up what broad theory is applicable. My take (have an MBA or equivalent) is to look at differentiation, segmentation, resource based strategy, feedback loops and platform theory, Porter's five forces with critique, a static VS a dynamic perspective.
If you can find a viable (hopefully quite sustainable) strategy, go for it. If you can't, then don't.