Competitive Risks

Every enterprise has more competitors and fewer competitive advantages than it thinks. If there is money to be made by satisfying a pressing need in the marketplace, you can be sure that plenty of others are gunning for that same consumer dollar.

Business is a contact sport, and some of your competitors will play rough. They'll copy your business model. They'll try to out-innovate you. They'll try to out-spend you on marketing. They'll start price wars. They'll start rumors about your product. They'll try to do an end-run around your patents. They'll try to steal your trade secrets. They‘ll try to poach your best people. Just because you're paranoid, it doesn't mean they're not out to get you.

To stay ahead of your competition, you must continuously ask yourself – and your trusted advisors – what others might do to try to beat you, and then develop appropriate defenses. Know your Strengths, Weaknesses, Opportunities, and Threats – S.W.O.T analysis isn't just a business school exercise. Figure out what you do better than all of your competitors – whether it be price, features, quality, or some other advantage – and focus on maintaining your leadership in that category.