The Flip Video Camera is a Star Business

The Flip Video Camera is a simple easy to use video camera. It is a star business because:

1. They took the video camera market and sliced it in a new way. While most digital cameras are extremely complicated with lots of different features, The Flip is a stripped down version with no big screen, no photo-taking ability, no settings, no video light, no special effects, no optical zoom. And they priced it below $200.

2. They've created a whole new category called, "the $200 digital camcorder category." While I would not refer to a priced based segmentation as a new category, the real value lies in the simplicity and ease of use and the minimalistic approach. So ideally their tag-line should be "Video Cameras for the Rest of Us"

So even though there are competitors entering the space, it will be difficult to dislodge these guys as long as they don't make any major positioning errors.