If there is already a clear competitive advantage then indeed the competitors are not that big of an issue. But it is very hard to ascertain that. Besides almost every company has smart people. So if there is something that can be done and it is not technologically impossible (or patented) then chances are that lot of other folks can do it too.

Those besides incumbents have about the same chance as you starting up and that is fair. The real issue is in estimating the likelihood that incumbents would dive-in too before you get traction. So what are the factors that one can look at or ensure to minimize the risk of doing something that the entrenched players would replicate. Or what are the factors based on which such an idea should be put aside?

I really appreciate all the high quality input I am getting.