Myspace’s rise and fall
It was reasonable that Facebook initially ignored a section of its market because MySpace was so large and Facebook was so small. Facebook’s initial users included college students. To join, you had to have an active university email address. This created an exclusive “club” atmosphere that improved customer satisfaction among users while also helping the company differentiate itself from MySpace which had become overly cluttered with ads & spam.
Facebook also allowed them to target a specific demographic at the beginning, allowing them to tailor their offering according and increasing customer satisfaction. These approaches helped them to build trust and gain valuable insights into their target audience.
However, having an efficient strategy will allow organizations to remain competitive in saturated markets regardless what the underlying conditions may be. Sources: https://www.webopedia.com/TERM/F/Facebook_effect.html, https://enlightenme.com/facebook-success-story/#:~:text=The%20reason%20why