I remember once reading of an example where a company did not stick to its core product line and diversified. But what they stand for with one of their operations was at odds with their old core line, eventually the company failed in some sort. Does anyone remember which company this was? Or any others like it? Not specifically a startup or linked to the internet
What does this have to do with startups?:
Its a question of image. If an internet company caters for all sorts of customers, say ebay is connotated with a second hand market. Is there some truth to it tarnishing the image of some of its market segments (e.g no one would like to buy clothes on ebay). Should a startup focus on a class of customer or go for the full set?