Over the next few weeks I want to go through a process of discovery and planning around the Australian Tech Startup industry. Part 1 of this process is related to clusters.

In one of his seminal works, The Competitive Advantage of Nations (read the introduction to the article if you have time), leading business strategist Michael Porter explains how certain nations get ahead in certain industries – think Germans in cars, or Italians in Fashion, or Japanese/Koreans in Electronics, or the Spanish in football players (OK, maybe I’m a little biased and made that one up)

Getting back to Porter, there are 4 major components of his diamond-shaped model, but the one I want to focus on is firm strategy, structure and rivalry.

The general idea here is that, when you have clusters of competitors, the co-opetition, or collaborative competition, drives innovation faster than elsewhere.

It’s a simplistic explanation and may not even directly apply to a post Web 2.0 flat world, but it’ll do for now.

So, I’m keen to hear your thoughts re: in what areas we (i.e. Australia) have clusters of start-ups working on similar problems.

2 points should be noted here: -

1. By “areas”, I mean areas of work, not geographic areas
2. This is not to say, by any means, that these areas the only areas we can be successful in

It could be something as specific as wine review sites (we have a few of those that always seem to get mentioned in leading blogs) or something more general such as data transfer (we always seem to have good scientists working on ways to improve speed and accuracy of data transport)

Part 2 of the process will flow directly from your responses, so let’s try and knock up as comprehensive a list of suggestions as possible.

p>Until the other day I had never heard of Melbourne-based Applebox. That was, of course, until I received an email from Simon Gilligan, the company’s founder.

The Applebox team is Simon and his sister Sarah, whose IT and Management skills compliment each other to create something really exciting.

What Applebox does is brilliant in its simplicity. They put the catalogue online, put the DVDs in a cabinet, drop the shelves and have their staff pick the DVD from the cabinet when someone orders it via the catalogue. Simple.

It’s your classic Clicks and Mortar strategy but executed to perfection. The best bit? The whole site has been custom built by Simon so they are more agile and responsive than their competitors. (You can check out more of the technical details, including their pretty cool web stack, HERE)

Speaking of competitors, there are a few, but each is strategically inferior to Applebox at the moment: -

1. VideoEzy and its 800 stores (not many people know that VideoEzy is the master franchiser for all Blockbuster stores in Australia as well) is way too invested in realestate (not to mention their websites suck so bad it’s obvious they don’t really get technology as an enabler
2. NSW based RedRoom DVD vending machines are a step in the right direction at least but have probably gone too far down the structured/automation path
3. Quikflix is struggling hard, still 25,000 odd members short of hitting breakeven and they only added 150 in May.
4. Bigpond Movies Download – The infrastructure really isn’t available in Australia to make this a viable option for the foreseeable future. The failure of all non-subsidised players in this space is further evidence of this fact.

In just 8 months Applebox has signed up almost 1500 members and is growing strong.

Future plans include multiple stores as well as members having access to the catalogue across all stores (with pickup and drop back to any store). There are also plans for a flixster styled social network seeded from Applebox members.

I like Simon, mostly because he sent me through so much different, interesting and detailed info that its clear he has a passion for what he’s doing. Whats great is that his passion is being rewarded.

Here’s hoping the Victorians get behind Applebox so the business grows and expands into NSW. We really need something like this up here, soon.