In this podcast segment Francis Wade reads his Jamaica Gleaner article “New Reasons to Stop Competing” and argues that the traditional MBA focus on beating rivals, epitomised by Michael Porter’s competitive‑strategy framework, is becoming outdated in the post‑COVID era. He illustrates how treating competition as combat—citing extreme sports incidents like Nancy Kerrigan’s attack and Mike Tyson’s ear‑biting—leads to destructive behaviour that undermines the cooperation needed for business success. Wade stresses that strong competitors are essential for a company to improve and earn genuine acclaim, using the metaphor of Usain Bolt needing worthy sprinters. He then shifts to a customer‑centric perspective, claiming that the pandemic has shown the importance of pivoting based on consumer signals rather than rival actions. By monitoring changing customer behaviours, firms can spot new substitutes and hidden competitors such as COVID restrictions, social media, or streaming services, and adjust offerings accordingly. The piece concludes with a call for Caribbean businesses to rethink strategy, focus on serving customers, and view competition as a mental construct that can be managed or ignored.
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Hello and welcome back to Chronicles from a Caribbean Chronicle Podcast. This is Francis Wade, and here's an article I wrote for the Jamaica Gleaner. It's entitled "New Reasons to Stop Competing." Much of the MBA-level teaching around strategy focuses on beating the competition. Has that line of thinking been rendered obsolete by the pandemic, to be replaced by a fresh focus elsewhere? Harvard's Michael E. Porter is well known for his thought leadership on competitive strategy— finding ways to beat your company's rivals. Lately, however, his theories deserve a rethink, especially now that the end of COVID's rampage is in sight. Has his main thrust of focusing on your competitors become obsolete? To wit, we can all recall examples where someone took the idea of competition a bit too far. Olympic skater Nancy Kerrigan's attack at the hand of Tonya Harding's ex-husband. Boxer Mike Tyson spitting out a piece of Evander Holyfield's ear. Formula One driver Nelson Piquet's intentional crash at the Singapore Grand Prix. These cautionary tales all occurred in sporting competitions designed to crown a single winner. However, in business, the relations between companies are less clear-cut, with good reason. They have as much to gain from cooperation as they do competition. Here's why. Competition is not the same as combat. Historically, the first strategists were warriors. Having a great military strategy was a matter of life or death in the world's great conflicts. While many powerful lessons were carried over from that arena into others such as politics, business, and sports, some, like the athletes mentioned earlier, take the analogy too far. By treating their competition as enemies and setting a goal of total destruction, they could easily ruin the cooperation required to help them win where it counts—on the bottom line. For example, imagine if Usain Bolt conspired to harm or trick the other sprinters in a 100-meter final. If they were all to retire hurt or be disqualified, he would triumph by fault and be left to race down the track alone. Only then would the folly of winning by all costs become apparent. The fact is, he needed strong competitors in order to be a true champion worthy of acclaim. In like manner, you may agree that it's a mistake to crush your competitor's reputation. In the airline industry, for example, companies rarely mention the low safety record of their rivals. Casting aspersions on the safety of flying ruins the public's trust in the entire field. As such, in business, it's often a poor strategy to destroy your enemies. You probably need them. Competitors exist in the mind's eye. Unlike simple competitions such as those found in online gaming, Olympic sports, or gambling, in business they are complex. In fact, the companies who you consider to be your rivals may not think of you in the same way at all. They may think you too small or too big to compete with, or the source of their profits might be different. If either of these are true, then you're the one who's picking a fight. Not them. And this can be a good thing. The upside of labeling other companies competitors is that you are more likely to emulate them. Now you'll be able to see where improvements are needed. While you may be jealous or even embarrassed at the gap, understand that the rivalry is one you have created. It's all in your mind. As such, you also have the power to ignore or treat them differently. Do whatever works. Customers don't care. For the most part, the stakeholders who matter the most—your customers—care little about your supposed rivalries. Even as you rack up defeats and victories, their focus is elsewhere. What really matters to them is how well you serve their needs. One big lesson from the pandemic is the notion that pivoting is all about your consumers. For example, pay close attention to them and you'll receive an early warning sign about the technologies they want you to use. Their signal will come along before other companies pick up on it. In this context, only your customers' behaviors matter. Therefore, you may as well shift your thoughts away from traditional competition and towards serving those who consume your products and services. Here you will find new competitors substitutes customers are making that aren't expected. For example, if you're in the movie business, consider your rivals to be COVID restrictions, long working hours, distractions, social media, online entertainment, the news, and any more practices which displace your offerings. This kind of deep dive into your customers' changing patterns of behavior won't come if you are fixated on your old competitors. Leave them to their machinations and focus on the ones which can help you pivot to meet your customers' new unmet needs. Thanks for listening. Do you have an unsolved problem in your Caribbean company related to strategy, productivity, engagement, or business process improvement? Just visit a searchable listing of all my prior articles, and you may be able to help yourself to a fresh line of thinking. Go to blog.fwconsulting.com or see the show notes.
