Monday 16 February 2015

Congratulations! You've Just Been Attacked...

I’ve just seen the first case of a new business in an under-supplied market experience its first real attack from a competitor who, until now, has enjoyed a near monopoly position.

The owner was unhappy that someone should (as they put it) stoop “this low”.  My view was different.

I told them to see it as a good thing! 

Why?  If you’re in this position, it actually means that you’re:
  • Doing something right.
  • Generating interest - people are “talking about you”.
  • Making an impact on the market. 
  • Worrying the current incumbents (who may have “had it too good for too long”).
This is life in the business world (it’s called “competition”).  Competition is good for consumers as it results in better:
  • Pricing
  • Products/services
  • Information
So what do you do now?  Clearly, an established competitor is scared and could and/or will adopt all sorts of tactics (including “dirty tricks”) to reduce or eliminate the threat that you pose. 

My advice is to:

Assess The Real Reason Behind The Attack:
Generally, it’s because you're now a serious competitive threat.  If you weren’t important enough, they wouldn’t bother.  So, you now have them on the defensive…  Good.  That means they may spend more time on you as a threat, rather than on running their business.

Assess The Competition:
What are their strengths and weaknesses?  What’s their reputation in the market (you may find that the market knows them better than you think!)?  What are they doing well that you aren’t?  What financial resources do they have to sustain a competition war" before running out of time, funds or customer goodwill?

Assess Yourself:
How do you stack up against the competition?  What are you doing well that they aren’t?  Where can you differentiate yourself from them at little/no cost? 

Assess Courses of Action:
Can you develop a business model that they can’t copy, or that will force them to make major changes?   Could you improve to match what they do well?  You may be able to complain to the local Chamber of Commerce, Industry Regulator or Advertising Standards Regulator, depending on the situation.  Legal action is a last resort and is expensive.

Assess The Future:
What might they do next?  What are your options to counter?  Depending on what they do, the best strategy may be to ignore it and let your reputation, product/service speak for itself.  If you're providing something that customers really want, they’ll "vote with their feet” (or wallet) and come to you.

Keep It “Professional”:
Healthy competition is one thing; unethical behaviour is another.  Some competitors don’t understand the difference.  Show that you do.  In the long run, the market will see the difference.  Customers aren’t stupid.

Keep Records:
Keep a file of any comments, postings or actions your competition makes/takes.  After a while, you’ll see a pattern and be able to predict how they’ll behave.  It may also help if/when you complain to Chambers of Commerce or other regulators mentioned above.

In conclusion, expect competitors to react to what you do, just as you do with them.  Competition is a good thing for everyone and is part of life.  Just make sure that you know where to draw the line between healthy competitive practice and unethical behaviour.


I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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posted by William Martin @ 12:15

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