The paper analyses the birth of the Encryption Software Industry (ESI), a new niche in the software industry. Using a Chandlerian perspective, the author reports the main facts about firm entry and growth with a particular focus on start-up strategies and actions. Since scale economies do not play a major role in ESI, the paper investigates the different sources of firm competitive advantages.
Link
http://www.lem.sssup.it/WPLem/files/2003-28.pdf