10 Ways to Stay Ahead of the Competition - Guy Kawasaki

Guy Kawasaki contacted me a couple of weeks ago, asking me to write a short piece for him.  I was happy to do so, and he published it at the BusinessInsider.com War Room as "10 Ways to Stay Ahead of the Competition."  Fortunately for me, the article was also picked up at IBMOpenForum.com with the alternate title "How to Stay Ahead of the Competition."  Full explanations of each bullet are at both locations (although the graphics are outstanding at Business Insider so I prefer it.)

1. Develop future scenarios
2. Obsess about competitors
3. Study fringe competitors
4. Attack your Lock-ins
5. Seek Disruptions
6. Don't ask customers for insight
7. Avoid Cost Cutting
8. Do lots of testing
9. Acquire outside input
10. Target competitors

Blog followers know that this program has now worked for many companies who want to grow in this recession.  The reason it works is because

• You focus on the market, not yourself
• You avoid Lock-in blindness by avoiding an over-focus on existing products, services and customers
• You use outside input, from advisers and competitors to identify market shifts that can really hurt you
• You put a competitive edge into everything you do.  Competitors kill your returns, not yourself.
• You use market feedback rather than internal analysis guide resource allocation

Of course this works.  How can it not?  When you are obsessed about markets and competitors and you let it direct your flow of money and talent you'll constantly be positioned to do what the market values.  You'll have your eyes on the horizon, and not the rear view mirror.

The biggest objection is always my comment about "don't ask customers for insight."  So many people have been indoctrinated into "always ask the customer" and "the customer is always right" that they can't imagine not asking customers what you ought to do.  Even though the evidence is overwhelming that customer feedback is usually wrong, and more likely destructive than beneficial. 

Just remember, IBMs best customers (data center managers) told them the PC was a stupid product, and IBM dropped the product line 6 years after inventing the PC business.  DEC's customers kept asking for more bells and whistles on their CAD/CAM systems, then dropped DEC altogether for AutoCad ending the company.  GM customers kept asking for bigger, faster more comfortable cars - improvements on previous models - then moved to imports with different designs, better gas mileage and better fit/finish.  Circuit City customers asked for more in-store assistance, then took the assistance across the street to buy from cheaper Best Buy stores.  The stories are legend of failed companies who delivered what the customer wanted, and ended up out of business.

Enjoy the links, and thanks to Guy for publishing this short piece.  Follow these 10 steps and any business can stay ahead of the competition.

Comments

[Leon Fangnigbe]

I agree with everything but one thing that I disagree with you is "Don't ask customers for insight", which you anticipate. I will "Do not listen to your customers blindly".
Every customer is different. You have many different customers: Profitable customers, strategic customers, beta tester customers etc....
Customers do matter but they do not play a central role as before because they are many aggressive competitors.
A business must GROW or DIE.
TO GROW, YOU MUST FIND NEW MARKET, BE DISRUPTIVE so Study and Target Competitors.
Leon Fangnigbe
www.TaxMamba.com | www.MLFSolutions.com

[Melagbessi]

I agree with everything but one thing that I disagree with you is "Don't ask customers for insight", which you anticipate. I will "Do not listen to your customers blindly".
Every customer is different. You have many different customers: Profitable customers, strategic customers, beta tester customers etc....
Customers do matter but they do not play a central role as before because they are many aggressive competitors.
A business must GROW or DIE.
TO GROW, YOU MUST FIND NEW MARKET, BE DISRUPTIVE so Study and Target Competitors.
Leon Fangnigbe
www.TaxMamba.com | www.MLFSolutions.com

[Margaret Reynolds]

Adam, a great article which is spot on Although I understand the clarification above, customers cannot tell you what they don't know or have never seen. In my language I call it an outside-in approach as opposed to inside-out and also like to say we need to avoid me-too-ness in which we benchmark competition and then try to emulate and/or one up them--all of which adds cost not new ideas or differentiation.

[Heidi Hansen]

These 10 points seem to me to be contrary to your thoughts on white space, Adam. Don't ask customers for insights? Where else are you going to find new ideas and how does that jive with Acquire Outside Input? Obsess about competitors? That's old idea thinking...what's being done now. I think Guy's list is about 50% helpful.

[John Dixon]

I believe Henry Ford said - "if I asked my customers what they wanted, they would have told me a faster horse"

[r4i sdhc]

I have just read your article and yes it has good graphics.After reading that article to stay ahead of the competition,I must say that you have a great knowledge about Business strategies.I have learned something.I believe in target competitors.