As a young banker in Lagos, I wrote a report that one reason for the collapse of many small businesses in the eastern Nigerian city poverty was mutual. I noticed that many employers have started well, but if you paralyze some success, family and extended family system, which would become it is. As more people depend on the requirements, they would eat into their capital and eventually collapse.
It happens very often as most men, the unemployedIn many villages have managed growth companies at one time in their lives. They are sent by their parents for training places in the city after serving their masters, were assisted to start their own business. Once they start, the local power of the African family system will come to them.
Other family members in their homes and unwanted activities to destroy their business and eventually bring them back moves for accelerated poverty. It seems thatYou can not have that rich men in a system where many are poor. You are in local poverty loan until the break of day, the company was moving forward and arm around the village.
I concluded that a note that successful entrepreneurs come from stable families and support on average about those whose families disproportionately on them. My motivation was to understand the risk profiles of applicants, banks' lending business.
The same analogy applies to topmany modern industries. More and more companies in their competitive strategies of our customers. They tend to do similar things, in order to preserve self-determination. In the era of Yahoo and AOL, if similar services. phone companies offer mobile services and pricing models, which are largely the same.
The television networks are not spared this effect. Casino airline industry, we can see a tidy community of industries. They agreed, but neveradd, move, features, services and similar prices. Aviation has been known for about fifteen years ago. In most developing countries, markets that do not have Internet has penetrated, move the empires of media in tandem on their stories, pricing and distribution networks.
I call the local mutual competitive strategy, because it simply means that these companies in their industries form community ties and agree to maintain services that offer lessInterruptions in their industries. Many have this winning strategy. He is also co-opetition, where, especially in banks, even if they compete against each other in the work and the industry has seen in good health.
Unfortunately, just as the local poverty mutual ends badly, competition between local strategy (CMC) is convicted in this age group. The 21st century is not, can go where the consumer industry. Technology disturbs our needs more quickly and makestrends may come and fade away quickly. This is consistent with my thesis that focusing on customer needs is a recipe for disaster, but companies need to focus on meeting customers' perception. This means, going to services and products that you imagine they need and do not need by others. The idea is that very soon the trend will make them to do so. It 's like the iPod or iPhone to develop when few thought they were useless, but when they arrived, we all liked it.
AsSocial Media, technology and globalization make the most informed consumer, companies must follow the impulse of competitors in CMCS to resist. I understand how difficult it would be to create unique, or possibly a loner, if something is working for everyone in the industry, and someone asks you to follow a different plan. Banks destroy their industry, when most of the Great fell in subprime mortgages. In most instances, the defense of these banks make these loans, a sectorStandard.
The old Ford Motor, Chrysler and GM have followed a trend make big gas-hungry vehicles. 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 needs, consumer perceptions of the environment, air movement, the projections of oil prices and other factors have played a minor role included on the basis of their strategies. They were happy to race together, worked andno one was willing to be a loner, although the data demonstrate the need.
So what companies must do, avoid the trap of CMCS? You must be abandoned in favor of reciprocity, if necessary. Google shocked the industry when, as Yahoo, MSN and AOL were doing basically the same thing out. I remembered that was the highest E-storage, then 8 mg, 1 GB provided by Google. In the aviation sector, we have seen, Ryanair and other low-cost airlines in Europe disordersIndustry by offering competitive prices and market shares of domestic airlines. We all know what has happened in the major U.S. auto companies, if an appeal against the company in Asia, models, built by the customer.
In summary, I'm not saying that is competitive Herding totally bad. However, if the organization that uses it will not last long. The majority of new entrants in the decision on these models to attack and when they do, you will be interested in focus. This means you need a strategy that hasis different from the competition. You like McDonald invested in Chipotle Mexican Grill. While the Big Mac was under attack by policies covering them with Chipotle. Similarly, given that Pepsi has evolved from pure soda company. If you are attacking the business focus firm, you will not get Pepsi. I left the war with soda Cola, and reinvented.
CMCS avoid the case and if all are competing for more customers, you can go alone andrefuse to give. And when they assume that customers spend more. Herding with your competitors is no guarantee that you will survive. It simply means that your industry is vulnerable because of your unique pattern can easily be remedied by a stranger.
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