Who is this research for? Startup founders, technology executives, product leaders, innovation managers, app developers, and growth-stage companies navigating competitive digital markets.
Top Answer
Research suggests that the signals mobile app startups send to the marketplace can influence competitive threats. Public messaging that emphasizes expertise, credibility, and product value appears associated with fewer imitation attempts, while messaging that relies heavily on emotional appeals to consumers may unintentionally attract greater copycat competition. Funding may also discourage some competitors by signaling a startup's quality and resources.
Executive Summary
In digital markets, successful products often attract imitators. For mobile app startups operating in highly competitive platform ecosystems, copycat products can threaten growth, profitability, and long-term survival. This research from Dr. Franck Soh (Texas Christian University) and Dr. Varun Grover (Department of Information Systems, Sam M. Walton College of Business, University of Arkansas) examines how startups can influence those competitive threats through the signals they send to the marketplace.
Using data from 3,286 mobile app startups operating on Apple's App Store and Google Play between 2012 and 2022, the researchers investigated how competitors identify products worth imitating and decide whether imitation is worthwhile. The study focuses on two forms of signaling: rhetorical signals communicated through social media and substantive signals, such as investor funding.
The findings suggest that not all startup communication has the same competitive consequences. Social media messaging that emphasizes emotions appears to be associated with fewer imitation attempts. The research also indicates that investor funding can discourage some competitors by signaling stronger capabilities and resources. Notably, competitors respond differently depending on their own experience and funding status, suggesting that startups' public communications may shape competitive behavior in ways leaders often overlook.
Expert Insights: What should mobile app startup leaders understand about new entry threats?
Why do some startups become attractive targets for copycat competitors?
Dr. Varun Grover notes: “Startups become attractive imitation targets when they make the opportunity visible and easy to understand. In digital markets, competitors are constantly scanning for signals about which products are gaining attention, which markets look promising, and which ideas can be copied quickly. Public communication can therefore do more than attract customers — it can also alert competitors.”
→ Takeaway: Startup messaging does not only shape customer perceptions. It can also help competitors identify what is worth copying.
How can founders use social media strategically without revealing too much to competitors?
Dr. Varun Grover explains: “Founders should use social media to communicate value, credibility, and expertise, but they should be careful about over-revealing the exact playbook. The goal is to signal that the startup is capable, differentiated, and hard to beat — not to provide competitors with a roadmap for imitation.”
→ Takeaway: Use social media to build confidence in the startup, but avoid exposing the specific details that make the product easy to replicate.
Based on your research, what do you think startups should emphasize in their messaging before, during, and after a product launch?
Dr. Varun Grover notes: “Before and during launch, startups should emphasize the problem being solved, the product’s distinctive value, and the credibility of the team. After launch, they should continue reinforcing expertise, customer value, and execution capability. Emotional messaging can help create excitement, but relying too heavily on emotion may make the opportunity look easier for competitors to chase.”
→ Takeaway: Balance excitement with substance. Messaging should make the startup look valuable to customers, but difficult for competitors to imitate.
What practical advice would you give founders launching a new app in a highly competitive market?
Dr. Varun Grover notes: “Founders should treat public communication as part of competitive strategy. Every post, announcement, and funding signal tells the market something. The most effective messaging does not simply say, ‘Look at us.’ It says, ‘We understand the market, we have real capability, and we are not an easy target.”
→ Takeaway: In competitive app markets, communication is not just marketing. It is also a signal to rivals, investors, and customers about the startup’s strength and defensibility.
Link to the Original Research
Published in Journal of Management Information Systems (2026)
Frequently Asked Questions
What is a copycat app?
A copycat app is a product that imitates the features, functionality, or positioning of an existing app rather than introducing a substantially new concept. In mobile app markets, copycat products can emerge quickly because development costs and barriers to entry are often relatively low.
Why are mobile app markets especially vulnerable to imitation?
Mobile app markets typically feature low entry barriers, shared development resources, and limited protection for product ideas. These conditions make it easier for competitors to observe successful products and develop similar alternatives.
How do competitors identify products worth copying?
According to the research, competitors do not simply imitate every successful app they encounter. Instead, they look for signals that help them identify attractive opportunities and assess whether imitation is likely to be worthwhile.
What is signaling in a startup context?
Signaling refers to the information a startup communicates to the marketplace through actions such as fundraising, product announcements, partnerships, and social media messaging. These signals can shape how customers, investors, and competitors perceive the startup's quality and potential.
Can social media create competitive risks for startups?
Yes. While social media can help startups build awareness and attract customers, it can also provide competitors with valuable information about products, positioning, capabilities, and market opportunities. The research suggests that different types of messaging may influence competitors' willingness to imitate.
