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We
do not like competition. They are annoying. They give us trouble.
They are a real 'pain in the neck' (or elsewhere).
At
least, that is what people say.
I
do not know the top management at Apple or at Boeing. However, I
suspect that they are not especially happy that they have strong
competition. But, they should be.
“That's
crazy”, you say. “I don't want competition. I want to squash
them. I want to win.”
But,
it is precisely because of competition that you can win (maybe).
Competition validates what you are doing right. Competition pushes
you to do better. Competition gives you ideas.
Take
the example of the smart phone. Apple comes out with the iPhone and
makes a success of it. With that, others see what can be done and
come out with their own offerings – some not so good, some rather
good. Each different in some way. Each showing what can be done.
The competition is showing what can be done and pushing Apple to do
better. The result is the advancement of technology and the
development of better products.
The
same is happening in the commercial aviation industry. Boeing is,
maybe, not very happy about Airbus. (I drafted this while on an
A380.) The competition is really tough between the two companies.
But, it is precisely this competition that pushes Boeing to
differentiate and to develop the B787 'Dream Liner'. That
development was not easy. However, the result is a stronger product
family for Boeing – and better choices for us.
When
we do not have competition, life is too easy. It is too easy to stay
with what we have and not work on advancements. We saw this in the
companies of communist 'managed economies'. Without competition,
they just stayed doing what they were doing. There was no reason to
do otherwise. It was the people – the customers – who suffered
with increasingly obsolete products and poor service.
This
competition can come from new technologies. The Internet and
electronic media is causing an upheaval in the publishing industry –
newspapers, magazines, and books. This is showing what can be done.
The established companies need to react. We have seen the same thing
with the radical change in the music and film industries.
Yes,
there is the risk that the competition might win – especially when
we come out with a new product idea and there are sleeping
competitors who have stronger capabilities and more resources. You
may remember the story of Snapple Beverages. They built a business
and a reputation with their funky fruit mix drinks. Then they
perfected the process of bottled flavored ice tea. Consumers liked
it and their business took off. However, with that, the company that
had been a niche player and too small to be noticed by the big guys
suddenly got attention. With their success in bottled ice tea, they
essentially poked a stick in the ribs of two sleeping bears –
Tetley and Nestlé. The market entry by Tetley and Nestlé validated
the idea that Snapple had launched. (However, Tetley and Nestlé had
much greater resources and took the market.)
When
you gain market success in a new area, be you Snapple or Apple, you
have proved the concept. Your success gets attention from others and
they jump into the market. The race is on. May the best team win.
This
is all normal – regardless of the industry that you are in and
regardless if you are in a physical product or service business.
So,
even though you may not be happy with the moves of your competitors,
I say rejoice in their moves – and especially their successes.
(Yes, I know that you are gritting your teeth.) Their competitive
moves are validating what you are doing. Their competitive maneuvers
are testing new ideas – some of which will work while some may not.
Their competition is pushing you to do better and that will be
better for you.
Yes,
rejoice in your competition. It is because of them that you will be
better. And, that will be better for all of us.
Mark Louis Uhrich
Maisons-Laffitte, France, 28 August 2012
©Copyright Mark Uhrich