Nobody tells more of free enterprise and
competition and of the best man winning than the man who inherited his
fatherís store. C. Wright
occurs when organizations seek to defend their position or do better
than their peers. This may be holding on to or gaining market share, obtaining
(skilled staff, access to funds, land, etc.) or being at the top of league
marketplace: Competitors come in a
variety of guises:
are the traditional players in a sector. Each
one knows the products, services and strategies of the others and each has
usually found a niche in the market. Industry
leaders General Motors, Chrysler and Ford have been slugging it out for 70
continually enter market sectors, often with loss leading prices or innovative
ways of marketing their products or services.
as with a National Lottery and
charities, Airbus and the market for large passenger aircraft, Lexus and the
prestige car market.
do not compete with a similar product or service but provide something different
which still satisfies the same need - CDs replacing tapes and gramophone
records, and personal computers replacing typewriters.
Resources: Resources which are in limited supply also induce a
competitive environment. Organizations
compete for finance, skilled people, space, location, water, etc. Charities compete for the attention and
money of the public and attracting staff.
League tables: Many
non-profit organizations compete with each other on a pride and reputation basis
rather than for market share - local government (level of taxes), schools (examination
results) or hospitals (survival rate of operations).
Lateral thinking: Competition comes from
unlikely places - the alternative to a Mercedes could be a yacht or race
horse, rather than a BMW - is the customer looking for a means of transport or a demonstration of
wealth? Londonís St Paul's Cathedral gets half its funds from tourists and
finds that its biggest competitor is the River Thames
cruise boats and a fine, sunny day! >>>