Who Is Your True Competitor?
Do you know who your true competitor is?
Do you really know?
Nearly everybody has read about or heard of the success of Southwest airlines. While reading The Contrarian Effect by Michael Port and Elizabeth Marshall, I came across this little gem:
By offering low-cost fares, frequent flights, and fast, friendly service, Southwest quickly became a customer favorite — and a threat to the competition. Instead of focusing on its airline competitors, the company understood that the automobile was its true competitor and that it had to provide enough value for business travelers to decide to fly instead of drive. (p. 148, emphasis mine)
Most people assume their true competitors are those who are offering the same kind of product or service as they are.
But consider this:
- A copywriter’s true competitor may not be a similarly talented copywriter, but may actually be the client himself! (Many times, a client is comparing the cost of hiring a copywriter to the cost/hassle of buying a how-to course and writing the copy himself.)
- A company that sells skis may not really be competing with other ski manufacturers, but rather with those companies that manufacture, market, and sell snowboards.
- A restaurant is not necessarily competing with other restaurants, but rather with the convenience and affordability of eating at home. (To increase business, perhaps restaurants need to tell the story of why eating out is a better option than eating at home.)
Whatever business you’re in, figure out who your true competitor really is. Once you figure this out, you may quickly find new ways to strengthen your offers and draw in more clients and customers.
-Ryan M. Healy
