On Not Becoming More of The Same

Burger joints, coffee shops, steak houses, shopping malls, outlet stores, and grocery markets; while the list of choices is exasperating, does it sometimes feel that it is all just more of the same?

There are certain common and quantifiable qualities that define every business. The intent and ambition of the leaders, team culture, the systems and protocols that create the business blueprint, forecasting and sustainability, and the composition and identity of the customer base all become part of the formula for success. These become the fabric of the organization by which decisions are made, markets are created, and growth is forecasted and sustained. Each of these plays a vital role in the trajectory, success, and growth of a business. Alas, there is one component that is equally vital in the mix. It hovers in the shadows of each business and becomes part and parcel of the success or demise of the enterprise. This missing component is the competitor, opponent, the adversary.

In life, our opponent, real or perceived, defines who we are. It is no different in business. From the 1930s through the 1990s, the Soviet Union and the United States were adversaries in their ideologies on the global stage. The antagonistic relationship resulted in defining both countries. Astonishingly, in their fight against one another, each had become more like the adversary they were fighting. Both countries feared their detractors. In the USSR non-party members were vilified. In the United States, communist sympathizers were persecuted. Both countries competed to develop nuclear arms. Both countries raced to outer space and the moon. Both countries focused so many of their own precious and vital resources on what the other was doing, and each country ultimately and surprisingly became more of what it was fighting, the opponent. ?

Business is no different. How does one prevent this from happening? It requires a surgically precise extraction of the value from the opponent, leaving behind that which is not necessary, and a vigilant effort to uphold one’s unique value instead of morphing into a replica of the opponent. Here are three steps to ensuring that you do not become more of the same:

Value Differentiation: When observing an opponent, do so with an eye to differentiate your brand, your business, and yourself. Some businesses watch the competition to replicate what the competitor is doing. The more you are similar to your competitor, the more you will have to compete on price. Where all things are equal, you leave the customer no choice but to differentiate on price, and most customers aren’t looking for the option that costs more. Therefore, sameness is a race to the bottom.

Vulnerabilities: Every business has vulnerabilities. When looking at the opponent, try to notice what they are missing. Being in a similar business, their vulnerabilities are likely your vulnerabilities. What are they not paying attention to? Yellow Taxis were not paying attention to new technologies like phone apps and ride-sharing capabilities, thus Uber was born. Blockbuster Video was not paying attention to mail-order DVDs and then streaming video, thus Netflix was born. Netflix and Uber were studying the competition, but not in the same way as everyone else. They weren’t looking to do more of what their competitors were already doing, but rather they were studying their opponents to foresee what was missing in their business models.

Growth: The best part of having a great opponent is that they help set the bar for your industry. A great competitor can add gas to your engine, motivating you to innovate, try harder, and set higher goals. Great competitors allow you to see opportunities that you may otherwise miss, and they can play a role in helping you formulate day to day business decisions, such as which markets to avoid, what kind of technology to invest in (or not), and how much to spend on infrastructure. Sometimes one can even learn from a competitor’s mistakes. Great competitors can also offer you new allies in your quest to build your business legacy. As the famous quote goes, “The enemy of my enemy is my friend,” hence the competitor of your competitor may very well be your best ally.

Be careful not to become so focused on the opponent that you become them, but always stay mindful of their presence. ?As Henry Ford once said, “The competitor to be feared is one who never bothers about you at all but goes on making his own business better all the time.” After all, the world doesn’t need more of the same.