Bubblegeneration argues that Technorati’s “first-mover” advantage in the RSS feed business has eroded, in part because it never developed the compelling feedreader that Bloglines did.

The really crucial bit to note is that all of this flows from the same capability Technorati developed first – aggregating and indexing blogs. The difference in outcomes is due to the difference in how this capability was expressed in strategies, products, features, and pricing. Two players, same capability, different strategies – different outcomes.

Note, that part of the blog entry’s thesis is undercut by a comment from Technorati’s Niall Kennedy.