Monday, 11 January, 2010

Make Competition Irrelevant

Try n forget about your competition and following their every move..
Success lies not in being better than your competition but making it irrelevant..

Now here's a company whose sales grew by 90% and it's Profit by 77%
I'm talking about Nintendo .. and its ausome success Wii

Nintendo didn't just beat off it's comepetitor Sony.. it just crushed it
Nintendo makes $ 40 profit for every console sold,,
and PlayStation a loss of $ 200

and Nintendo didn't spend billions of $$ in R&D unlike Sony, it just did things differently and created a product which gave birth to a whole new category in itself..

So what should we learn from this.. and what should our new products be..

We should take note of the following

a.Competing in Traditional Markets
b. Exploiting existing demand
c. Choosing Between differentiation
or Low Cost
d. Trying to Beat our Competition

a. Create new Markets
b. Capture and create New Demand
c. Differentiation and Low Cost
d. Make competition Irrelevant

Many Companies have done this before and continue to do this.
e-bay came out with an online market place which anybody could connect to easily.It's growth lies squarely in the hand of it's customers.

Amazon has done this through Kindle which has changed the way people stack up books( ok ok read books) Apple Inc did it with It's i-pod n then the i-phone..
Google keeps on doing it .. with Adsense and Adwords the most successful examples..

Facebook has done it to social media.. 350 million users ..."Facebook Connect" being used by 60 million users to connect to various websites..

n Twitter has done it perfectly with its 140.. i really admire Twitter.. it's not a typical social networking site.. its beyond that..its a DIY tool for anything from garnering Knowledge to twepeeping on paris hilton.. and it will co-exist with Facebook..
So will LinkedIn..

What these companies have in common is that they are actually Different from their competitors..
n they have answered the right questions..

  • What factors should be eliminated which the Industry takes for granted?
  • What factors should be reduced well below industry standards?
  • What factors should be raised well above industry standards?
  • Which factors should be created that industry has never offered before?

@xploreROYalself once tweeted .. what differentiates smart from brilliant is : smart knows what to do and brilliant knows what not to

So these Brilliant companies Know the answer to those of the above question relevant to them and have worked on that..

Hence for all of us Innovation is the key.. be different not because it's a Fad..
But because you can deliver something worthwhile..

Then you just sleep easy..for who cares for competition... its irrelevant...

No comments: