Competition – Embrace it or Fear it – You Decide

The beginning of every football is the same;  the excitement in the stadium builds, and the roar of the crowd signals the anticipation of a thrilling game. Fans watch intently as their favorite team emerges from the tunnel, each player’s adrenaline pumping as they prepare to take the field. The opposing team’s entrance is met with equal enthusiasm, setting the stage for an intense competition. The coin toss determines the starting positions, and the game is on.

Without a large stadium and television audience, this scene is played out every day in the world of business, where companies compete for customers, clients, and market share instead of touchdowns, field goals, and safeties. The first question is, if there was no competition, would there be excitement or a need for your product or service? The second question is, how do you utilize the competition to build a more effective product or perform a higher level of service?

The Role of Competition in Business

According to author and scholar Nancy Pearcy, “Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” I believe this comment is right on point regarding the value of competition.

Just as football thrives on competition, so does business. Imagine attending a game with only one team on the field—it’s unthinkable. Similarly, in business, Competition is not just essential; it’s a driving force because it provides a continual benchmark for improvement and innovation. At a venture capital conference, an investor once noted, “If a company claims to have no competition, we immediately question whether they are foolish or is there a marketplace for their product or service.”

Preparing for the Game

Businesses, like football teams, must prepare rigorously. They study the competition, analyze market trends, refine their strategies, and bring new products to the marketplace. This preparation is not unlike a football team reviewing game tapes and sending scouts to observe their rivals. It’s about being better, faster, and more innovative in addressing the opposing team’s defense, and businesses need to do the same to feel confident and secure in their operations.

Businesses are opened, and products are designed to solve a problem or improve on a process. For example, consider the evolution of communication technologies. The telegraph was designed to communicate faster than the Pony Express, the telephone to communicate quicker and more effectively than the telegraph, cellular phones, and email to communicate faster than the land line telephone. Would any of this have happened if ATT “Ma-Bell” had not been broken up in the 1980’s? More than likely, the answer is yes, just at a slower pace. The ATT break-up created competition in the communication business, and the consumer and business community were the beneficiaries.

Then there is Amazon and Sears. Somewhere in the depths of Sears management, they missed the internet shopping boom that was on the horizon. I find this startling as Sears was the leader in in-home shopping with its catalog system. For those who are not aware, Sears had a catalog for everything: women’s and men’s clothes, tools, children’s, seasonal catalogs, and the list goes on. In the early 1900s, one could purchase an entire house through the Sears system. The story’s moral is never to take your eye off the competition, or they may surpass you, and you could become irrelevant.

Local Competition: A Case Study

Think about a town with only one grocery store. Without Competition, there’s little incentive for the store to improve. Introduce a second store, and suddenly, both must strive to offer better prices, friendlier service, and higher-quality products to retain customers. This dynamic ensures continuous improvement and benefits the consumer.

Welcoming and Embracing Competition

At the very least, a company needs to recognize that it has competition, welcome it, and embrace it. Why? Competition will bring out the best in you and your company. A business can learn from it, be better than them, and be more effective and efficient at their own game– thus the rationale for trade associations. When companies join forces in a trade association, they are friendly and cooperative, sharing ideas to enhance their industry. When they strive to obtain a client, they are competitors. It is no different than opposing teams shaking hands before and after a game, while during the game, they are there to compete and to win.

Learning from History: The Automotive Industry

Post-World War II, the U.S. automobile industry, led by the Big Three (General Motors, Ford, and Chrysler), dominated the market. However, by the 1970s, they faced significant challenges from low-cost imports and an oil embargo, highlighting their neglect of observing and understand the competition and changes in the marketplace. Consequently, their market share plummeted from 90% to around 50% today. This underscores the importance of recognizing and responding to competitive threats and understanding macroeconomic forces requiring you to adjust your product or service because your competition is making the required adjustments.

Competition in Life

Competition isn’t limited to business; it permeates all aspects of life. Students compete for college admissions, roles in school plays, and spots on sports teams. Even in personal relationships, Competition exists in subtle forms. This is why striving to be the best is essential in every endeavor.

Conclusion

Have you recognized your Competition in business or life? Competition in the marketplace or personal pursuits drives us to excel.

As you navigate your business journey, remember that Competition will bring out the best in you and your company. Recognize it, embrace it, and always take it seriously. This mindset will not only help you stay ahead but also ensure that you continuously innovate and improve, just like the best teams on the field.

This blog post draws on the insights from the fifth chapter, “The Kickoff”, of my book “First and Ten on the Twenty…is it Football, Business or Life?”, where twenty-four aspects of the business and game of football are explored in depth on how they can be applied to business and life.  For more on strategic planning and achieving business excellence, delve into the full text and discover how to apply these principles. https://toddsmithconsulting.com/author/