As a young banker in Lagos, I wrote a report that one reason for the collapse of many small businesses in eastern Nigeria, communal poverty was mutual. I noticed that many entrepreneurs started well lame, but just enough for success, family and extended family system will be. As more people depend on the conditions, they would eat into their capital and finally collapse.
It happens very often, since most of the unemployed menIn many villages have managed growth companies at one time in their lives. They were sent by their parents for apprenticeship in the town after serving their masters, were assisted to start their own businesses. Once begun, the local power of the African family system will be on them.
Other family members in their homes and intentional activities, to destroy their business, and possibly bring in poverty is moving faster. It seems thatYou can not have this many men in one system, where many are poor. They are dragged into poverty for the days of local mutual companies and their collapse again poor of the village.
I concluded that a note that successful entrepreneurs and support stable families, on average, from those whose families also disproportionately on them. My motivation was to help banks understand the risk profiles of applicants for the loan business.
The same analogy applies to the abovemany modern industries. Companies increasingly competitive position in the strategies of our customers. They tend to do similar things in order to support herself. In the era of Yahoo and AOL, if similar services. Mobile phone companies offer services and pricing models, which are largely the same.
Even network television are not spared this effect. Casinos airline industry, we can see a tidy community of industries. They agreed, but neveradmit it, entering functions, services and similar prices. The airline industry was known for fifteen years. In most developing markets, on which the Internet has permeated the media empires they move in tandem for their stories, pricing and distribution networks.
I call the local mutual competitive strategy because it simply means that companies in these industries in their community bonds and will agree to provide services under preserveDisorders, their industries. Many have called this a win-win strategy. There was also a co-opetition, where, especially in banks, if they cooperate with each other to keep competition in the industry has seen in good health.
Unfortunately ends as well as local mutual poverty poor local mutual competitive strategy (CMC) has been convicted in this age. The 21st century is one in which the industry can go to consumers. Technology disturbs our needs more quickly and makestrends may come and fade away quickly. This is consistent with my contention that focusing on customer needs is a recipe for disaster, but companies must focus on meeting customers 'perception'. This means, services and products offered to imagine that they need, and do not ask when. The idea is that early trends that need them. It 's like your iPod or iPhone to develop, although some thought they were unnecessary, but when they arrived, we all want.
AsSocial Media, technology and globalization make more informed consumers, companies must resist the temptation to follow competitors in CMC. I understand how difficult it can be unique or a loner, if something is working for everyone in the industry, and someone asks you to follow a different plan. Banks destroyed when most of its industry rose to very large subprime mortgage loans. In most cases, the defense of these banks in these loans became an industryStandard.
The old Ford Motors, Chrysler and GM have followed a pattern of making big gas vehicles hunger. They were all the flocks from each other and the competition has been defined to print more SUVs on the market. To see a 360 degree understanding of your market and the need, the consumer perception about the environment, the movement of the climate projections of oil prices and other factors on the basis also played small roles in their strategies. Was happy to compete together, it was work, andno one was willing to become a loner, although the data demonstrate the need.
So what companies must avoid the trap of CMC? You must go to the level of competition between them, if necessary. Google disrupted when the industry, because Yahoo, AOL and MSN basically did the same outside. I remembered that as store e-mail can then 8 mg, 1 GB of Google. The air transport sector, we saw the budget carrier Ryanair in Europe and other disordersIndustry by offering competitive prices, taking market share from the national carriers. We all know what happened to the big U.S. auto companies, if the company models built in Asia appeals to the customer.
In summary, I'm not saying that competition is very bad hats. However, if the organization is based on this, will not survive long. Most new players focus on these models to attack and when they do, you will be affected. This means that you must have a strategy thatis different from the competition. You like McDonald, to be invested in Chipotle Mexican Grill. While the model of Big Mac was under attack by policy, is covered with Chipotle. Similarly, given that Pepsi has evolved from pure soda company. If you can concentrate on the attack of the business firm, you get no Pepsi. You are out of the war with Coca-Cola soda and reinvented.
Avoid if CMC and if everyone in the competition for clientele, you can go alone andrefuse to give. And in cases where customers take more damage. Herding with your competitors is not a guarantee that it will survive. It simply means that your industry is vulnerable because the singular model can easily be remedied by a stranger.
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