Competition is a good thing. Here’s why:
1) Competition drives performance. It’s a forcing function for companies to hone in on satisfying true customer needs, at the lowest possible cost.
2) Ultimately, differences matter more than similarities. Competition allows you to position, and hence focus on your differentiated (and defensible) value proposition vs. the others. Their education of the market can be a valuable tailwind for you, too.
3) When competitors start copying you, you can write them off completely – it means they have stopped innovating. Don’t get distracted by this noise – continue to focus on outlearning (and consequently, out-innovating).
The next time you get that sinking feeling when you see an article about a competitor with a similar offering, take a deep breath. Rethink how you can channel this news to better your business, enhance your GTM, and out-deliver to your customers.
Of course, early competition has a downside: some companies can fail before they’ve built up their defenses. However, the right amount of rivalry can have incredibly positive effects on efficiency and long-term competitive advantage.
How can you use your competition to your advantage?
