Dr Joanne Sujansky: Sujansky Says May 16 2006

HOW TO HAVE A COMPETITIVE ADVANTAGE

Is it possible to create the kind of environment where people are excited about their jobs and enthusiastic about the future of their organization? Yes, but it takes a Vibrant Entrepreneurial Organization to create the kind of conditions that lead to an innovative, energetic workplace. Our new eBook, Creating a Vibrant Entrepreneurial Organization: Your Competitive Advantage, provides insights and practical techniques for transforming your organization right away. To learn more, visit www.howtohaveacompetitiveadvantage.com

Is Someone Sneaking Up On You?
Could that someone be your competition? Today’s business climate is the most cutthroat I’ve ever seen. Most companies these days seem to be ‘looking over their shoulder’ to make sure the competition isn’t catching up. And too often when the competition does catch up, they’re doing it by hiring your employees, offering knockoffs of your products, and snagging your customers with lower prices. What’s going on?

Rapidly evolving technologies and increased globalization have created a marketplace that demands that companies deliver everything ‘faster, cheaper and better.’ But it takes time and money to research new products and develop new markets. Isn’t it much faster to simply copy someone else’s success than to try and reinvent the wheel? Is this one of the reasons that your competitors are a bigger threat today than ever before?

The experts agree on the competition explosion. A new report by the World Competitiveness Yearbook ranks the US first out of 61 world economies, but goes on to say that “Hong Kong and Singapore are nipping at America’s heals.” Speaking at a recent business conference, Michael Eskew, chairman of United Parcel Service said, “There is no more pressing educational and business issue than preparing for a world that is coming closer together because of global trade.”

"It is neither the strongest species that survive, nor the most intelligent, but those that are best prepared for change."  -- Charles Robert Darwin, 1859

The Sincerest Form of Competition
They say that imitation is the sincerest form of flattery. But, it isn’t so flattering when your competitors begin t imitate your products, marketing plans or business models. And it isn’t flattering when they steal your customers, markets and profit margins!

But success has always bred imitators. A few years ago as my family and I were taking a trip south on Interstate 95 we kept seeing two competing restaurants. Their names were similar, their menus were almost identical and their buildings could have been clones. Their signage even looked the same (big bloc letters in squares). But we wondered … which was the originator and which was the imitator? Waffle House or Huddle House?

Waffle House, it turns out, was founded in 1955 in Georgia, with Huddle House following in 1964. There are plenty of examples like these where fierce competitors seem to be imitating one another: Coke vs. Pepsi, Apple vs. Microsoft, McDonalds vs. Wendy’s, Yahoo vs. Google. At one time “7 Eleven” stores even faced off against a competing chain called “6 Twelve” (which presumably opened an hour earlier and closed an hour later). Is your business also at risk from imitators?

Originator or Imitator? Take Our Quiz
Being first doesn’t guarantee long term success for the company that originated a product or business model. Sometimes it’s the imitator and not the originator that succeeds over the long haul.

What Chain Originated the Supermarket in America?
Was it one of the big three, Albertson’s, Safeway or Kroger? Maybe it was Piggly Wiggly or some chain you’ve never heard of.

What was America’s First Hamburger Chain?
Did McDonald’s spark the hamburger craze in America? How about Wendy’s? Burger King, perhaps? Don’t be too quick to pick, you might be surprised.

What was the First Commercial Personal Computer in the US?
Apple Computer and IBM slugged it out for PC supremacy in the early 1980s, with IBM eventually ceding its share of the business to the likes of Gateway and Dell. But which was first, Apple or IBM? Or neither?

What was the First Department Store Chain?
Recent mergers in the department store sector have spelled the end of many venerable chains. Names like Macy’s, Kaufmann’s, Bloomingdale’s, Lazarus, May Company, and Marshall Fields have been around since the 19th century. Was one of those the first department store chain?

What was the First Cola Drink?
This should be easy. It’s either Coke or Pepsi, right? Or could it be Dr. Pepper?

To find out which business was the imitator and which was the originator, visit www.keygroupconsulting.com/quiz5-16.html

“The essence of competitiveness is liberated when we make people believe that what they think and do is important - and then get out of their way while they do it.” -- Jack Welch

The ‘Bottom Line’ of Culture
So what if competitors can steal things like your trade secrets, products or ideas? What they can’t steal is what created your success in the first place … your culture. No matter how brilliant an idea or innovation may be, if your people don’t have the drive, the commitment, and the dedication to nurture it and bring it to fruition, you might as well not bother. After all, there will always be a competitor who can take your idea and do it cheaper, faster, or better.

If you have a company full of passionate, dedicated people, you don’t just have a solitary ‘good idea.’ You have an endless source of brilliant ideas. Your employees have a stake in your company that goes beyond grabbing the next paycheck. They’re committed to growing the business. They engage customers. They enthusiastically showcase your brand.

In this kind of environment -- which I call a Vibrant Entrepreneurial Organization – you also have far less risk of losing good employees to the competition. Everyone wants to be a part of what you have. You have an entire organization full of vibrant entrepreneurs—and that’s the key to thriving in the global economy.

For some great ideas on how to remain competitive in today’s business climate visit www.keygroupconsulting.com/growingyourveo.htm.