Leading Your Competitors

Competition is not limited to organizations providing the same service or selling the same products.

Your business, and every team within it, must have a source of competitive advantage--an overriding reason why customers will want to do business with you rather than a competitor. Understanding, identifying, creating, and sustaining competitive advantage is at the heart of good strategy.

Competition is not limited to organizations providing the same service or selling the same products. Much of your competition may be indirect. For example, for the strategic manager of a bowling alley, another bowling alley in town is a direct competitor. However, bowling is a form of family entertainment, so that manager also needs to consider competition from the movies and the local pizzeria. The leader of a team within an organization will be in direct competition with other teams within the organization that can provide the same service, but will face indirect competition from external companies that could also provide the is service.

ACTION POINT: Identify who your direct and indirect competitors are and develop a competitive advantage against them.