Seat at the Table

What the public perceives as a company’s competition can be a significant driver in a companies reputation and perceived market position.  In articles, reports or everyday conversations, people discuss companies in the context of competition - "Apple phones are great but I find Blackberry to be better for messaging" (is this the competitive comparison Apple wants?) or "I find I’m watching A&E less and History channel more."

Competition not only defines market position, but can help you manage reputation and reputation risk.  A more mature company  positioned against hot startups is a less risky proposition in a hot business category.  A young company positioned against major players is a high-risk but high-return proposition.  A company that is falling behind in one marketplace where it’s known but leading in other where it’s not known can focus on positioning against competitors in the latter market, thereby showing off strengths.

Here are some examples of how competition can define a company’s position.

• If you are a startup or mid-sized company then a major player competitor (the 800 lbs guerilla) can position you as scaling up (assuming you have facts that show you can compete with them.
• If you are the guerilla than choosing a hot startup in a hot space can show how quickly you are moving…but take care to make sure it’s just one product line that’s competing with the startup lest you been seen as smaller than you are.
• A public company’s competition positions how it will be covered and placed in analyst reports.
• A startup company’s competition defines how VCs will invest and who potential acquirers (the exit strategy de jour) might be.
• From a sales perspective, your competitors help get you on to the right budget line (another reason not to say "we have no competition" as that may also translate into "then we have no budget line item with which to purchase your product/service.").