Some companies are obsessed with their competitors. They try to figure out every move made by them. They develop a counter for it. In this process, they forget that the business exists because of customers. Instead of the customers, they focus their energies on the competition. It is a low-yield, defensive strategy. Many great football coaches tell their team to play to win instead of playing not to lose.
The healthcare diagnostic industry in India is very competitive. Even today, the predominant share of the market is with the unorganized sector. The Indian market is a fraction of the size of the US market. However, the industry is growing fast, and it is getting organized. SRL was the first corporate lab to enter the market. They focused on specialized, higher-end tests. They spread all over India and soon became a renowned brand. Many of today's national labs like Metropolis and Lal Pathlab were earlier strong regional players. With good leadership, they expanded their footprint and became public companies. I think the first lab to use IT, Automation, and democratize diagnostics was Thyrocare. They cut rates and made tests affordable to the masses. All these labs expanded the market. As new players jump in, the market share of these labs may go down, but their revenues are bound to increase. They are compelling other labs to find different customer segments and add immense value in whatever area of diagnostics they decide to play. Overall, it's a win-win for all the stakeholders.
So, it is critical to appreciate the competitors and learn from them. But, it is not acceptable to copy them and bad mouth them. While they compete fiercely in the market, these leading labs process each other's samples at special rates. Many customers may not be aware of this.
Does it sound altruistic? No, this makes perfect business sense. When we criticize our competitors, we start finding excuses for our shortcomings. Also, when we become abusive and obstructive, the word of our behavior spreads around. Our customers perceive us as selfish and egoistic. It destroys our reputation.
The components of the winning formula are:
Designing and Delivering better products
Developing better relationships with all stakeholders
Expanding the overall market
Not surprisingly, the competitor does not even figure in it.
Metrics: Track how many times you or your people speak negatively about your competitor. Also, monitor how many times your team is suggesting a meek approach to copying your competitor. Avoid both of them. Tell your team that this is not acceptable anymore. Refocus them to discuss customer strategies instead. Some companies go to the extent of immediately firing people who speak negatively about their competitors.
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