ad

Competition Is Bad For Your Business..Here Are Reasons

While most people have the thought that focusing on competition in one’s field of business is the best way of becoming successful, it is rather a not the best option.

Serving your customers is the primary point of your business!

Beating other businesses shouldn’t be a goal, rather it should be a byproduct of your success.

A famous American writer, Walter Kiechel, writes on Harvard Business Review about how focusing on your competitors is not a sound strategy.

“Avoiding competition is a condition, or more precisely, a frame of mind. An overweening focus on beating the other guy, girl, or outfit is just as bad for your psychological and moral health as it is for your business.”

American business investor and philanthropist, Warren Buffett, once said how much he disliked competition. “I don’t like it at all. I don’t know any good businessman who does”.

Buffet was quoted to have said that instead of going out and killing competitors,  he’d rather work on building a “moat” around his businesses, focusing on services or products that no one else can offer, and build a brand so formidable that no one can really compete anyway.

Competition is one of those things, like greed, that can take over a company.

If your business and its people take competing as a number one priority, they’re prey to obsessing over comparisons–our market share versus theirs, our cost position relative to theirs, our comparative product quality.

While these are all good things to know, and may serve as pointers to action, by themselves they rather miss the point.

According to Kiechel, you need to reflect on why you started your business in the first place. If your start-up’s mission is to “show the other guy up,” then your mission isn’t worthy. Instead of attempting to conquer everyone around you, your goals should be noble.

Goals of your business should be focused on perhaps making the best burger; offering the best medical device or advisory service; producing the best smartphone. Such ambitions typically entail a focus on, even an obsession with, customers, clients, would-be users of your product. Someone out there that you can serve and not defeat.

Competition keeps companies honest, and choices keep the consumer happy. If you make the best product or offer the best service, you don’t have to worry about conquering anyone.

Kiechel says instead of watching who is nipping at your heels, you need to focus on where you’re running to make sure you don’t fall.

Which would you rather focus on;
a) ‘We can make something great’ or
b) ‘Kill the enemy’?

I’ll suggest you go with option A.

No comments

Powered by Blogger.