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Friendster and Myspace. Friendster had the lead, but wasn't that long-dominant.

Edit: Also, just found this: http://www.quora.com/What-are-examples-of-markets-where-the-...

Great find. Silly me, should've checked Quora first.

Indeed, the first examples that came to mind were the iPod, as well as Android which has arguably "overtaken" iOS at this point.

To be fair though, for my original question I wanted to try limiting the scope to only startups, and more specifically startups that have almost the same product.

Perhaps that's nitpicking too much?

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