What we have historically thought of as competition is being
reshaped by technology and globalisation. The traditional view of competition –
people selling similar products and services to ‘our’ customers, however you define,
them has slipped into history. This is being replaced by an evolving landscape
of new competitive models and competition can now come from the most unexpected
places.
I look back to 1983 when I was in BT and the
telecommunications market was liberalised – Mercury was licensed and although
didn’t have much of an immediate impact it heralded the dawn of a new age.
Mercury was a traditional competitor – it ran landline telephone services using
fibre optic cables run down the side of railway lines etc. as its backbone. At
that time we knew who the competition was – it could be targeted and was,
reasonably, predictable.
If we fast forward to 2010 and look at the
telecommunications market it is a very different story – who would have thought
back in the 80s that the world would have gone mobile mad – computer and
software companies would be launching phones and we could make international
phone calls for free. Apple, Microsoft, Google, Skype and many others are
changing the communications landscape in radical ways.
The analogy I use is that of warfare – in the past we knew
who the enemy was – today we are in a world of asymmetric warfare where we no
longer know who e are fighting. Our business world is the same – we no longer
know who our competition might be. We are almost seeing Guerilla competition –
we are being sniped at from all sides.
The ease at which technology solutions can now be deployed,
coupled with companies moving into a more open approach to innovation and
product development means that the concept of product roadmaps are no longer
appropriate and I tal now of product landscapes – rather than product
development being linear it almost needs to be discontinuous to succeed.
The other factor to add into the mix is the impact of social
networking, peer feedback and other online sharing tools and techniques. eBay
started this I guess when it started to rate sellers and buyers based on
customer feedback. Amazon may also argue that it was first but whichever it was
it has now become a fact of life and this changes the way companies market to
consumers and business. The old paradigm of marketing – telling your customer
why they should buy your product or service is now old hat, being replaced by
the idea of trying to influence the influencers.
Companies such as Dell and AT&T have seen some success
by tapping into the blogosphere – employing full time ‘independent’ bloggers to
review their products and glean ideas for new products. This approach has proved successful in changing
consumers percpetion of the company and hopefully increased sales – well if you
believe the hype it has.
So back to the original question – who or what is
competition. Well in this new fast moving, asymetric world it could be anybody.
The tectonic plates of the business world are still shifting and new business
and marketing models are developing at a pace not previously seen.
When will this slow down – good question - my own opinion is
that it will slow within the next 5 years. There are a number of factors that
will impact the dynamics of the markets:
- ·
Environmental concerns
- ·
Economic factors
- ·
Consumerism fatigue
- ·
Resource constraints
Each of these factors will put pressure on the way we do
business. Increasing concerns aboutr gliobal warming, coupled with poiltical
manouverings around the environment will focus minds on recycling,
sustainability and taxation. These elements will all, hopefully, reduce consumerism
and materialism.
The recent recession has slowed consumer and business
spending and this is seen in figures being released by companies around the
world. This will ease over the next few years but the debt millstone we now
have will take years to pay back.
I have been interested over the last few weeks to hear
people wanting to get off the technology escalator of faster, quicker, more
pixels etc. A number of people
have started to ditch their smartphones for a phone – just a phone that makes
phone calls and not much else. I see this as a sign of wanting to declutter our
lives – a topic I have blogged on before – reducing the ‘noise’ in our lives.
The last component is resource constraints. As the emerging
economies start to build the demand for resources will increase and this will
increase prives and demand for scarce natural resources. China is already
consuming vast quantities of steel and building materials and as India and some
of the South American countries come onstream the demands will increase
further.
All this means that we can have less, whatever it is will be
more expensive, we probably cant afford it and we will be under pressure to
recycle and reuse rather than replace. Thes factors will again change the face
of competition as new market drivers change the competitive landscape yet again
– the question I guess is will it be an evolution or a revolution? The jury is
still out!