| Every sports fan knows the story of a sports team | | | | commented, “I don't sell lipstick, I sell hope”! |
| competitively peaking at the right time on the road | | | | Sadly after his death 25 years ago, the Company |
| to winning a championship. The Pittsburgh Steelers | | | | was run by a series of financial bean counters. |
| won the 2006 Super Bowl even though they only | | | | Innovation was minimized. Risk was out. Revlon has |
| had the second best record in their division. In | | | | not had a major product success since the fragrance |
| addition, they had to overcome the huge hurdle of | | | | Charlie, over 25 years ago. Today, Revlon is but a |
| playing three straight playoff games on the road in | | | | shell of it’s former glorious self. Ultima does not |
| front of hostile crowds. Entering the tournament, the | | | | even exist. Innovative competitors like Estee Lauder, |
| Steelers were not favorites to win a championship. | | | | L’Oreal, Redken and Paul Mitchell, Mac, Bobbie |
| But they did. | | | | Brown and many more have chipped and picked until |
| The level of competition they faced brought out the | | | | Revlon is almost a corpse. Competition forces |
| best in the Steelers. | | | | business to innovate, and evolve, or die: witness |
| In any field competition is needed to enhance the | | | | Revlon. |
| vitality of the participants. A capitalist economy | | | | Many entrepreneurs fear competition for |
| thrives on the ability of individuals, enterprises and | | | | understandable reasons. Many have weak intellectual |
| organizations to compete, some winning, some failing, | | | | property protection. They fear a larger, mature |
| all contributing to the fresh flow of innovation that is | | | | business attacking them head on with a version of |
| the lifeblood of a vibrant society. | | | | their product. The constant worry of being |
| Entrepreneurs are the key purveyors of new ideas | | | | overwhelmed by a rival with deeper resource levels is |
| and creativity, especially in the United States. The | | | | daunting. Nevertheless, the lesson to be learned from |
| fact that competition is so brutal, aggressive and | | | | competition is simple: it is always going to be there |
| pervasive for new opportunities is of great benefit in | | | | and it must be faced with courage and creativity. |
| keeping entrepreneurs sharp, motivated and cutting | | | | Sticking one’s head in the sand is not a realistic |
| edge. Inventors must anticipate that competitors will | | | | response to competitive threats. They are real and |
| make every attempt to circumvent the novel | | | | pervasive. The “survival of the fittest” does |
| features included in their product. This anticipation | | | | not apply only to the natural world but is just as |
| motivates them to create value-added features that | | | | applicable to the business world. In order to be one |
| further answer the competition and provide | | | | of the fittest, the entrepreneur must remain |
| consumers with fresh utility and novelty. | | | | innovative and think outside the box. As Satchel |
| Why is private enterprise vastly more efficient than | | | | Paige said, “don’t look back, somebody |
| public organizations. The most elemental answer: | | | | might be gaining on you”. I like, “you are |
| competition! There is one inefficient Post Office. | | | | never the greatest, only the latest”. |
| There are many competitors in the package delivery | | | | The successful entrepreneur is always seeking ways |
| service (FedEX, DHL, UPS, etc.) The Post Office is | | | | to improve their business model, add features, |
| subsidized: the private firms must fight it out for | | | | advance performance and anticipate strategy |
| market share, efficiencies and profit. They can go | | | | competitors might utilize to overcome their market |
| out of business, the Post Office never will. | | | | advantages. The ability to survive and prosper |
| Every state run airline (Alitalia, Air France, Varig, etc.) | | | | requires entrepreneurs to be flexible, quick and |
| is bankrupt. At the same time new private carriers | | | | opportunistic, all qualities that bigger rivals usually lack. |
| (Easy Jet, Ryan Air, etc.) are entering the market | | | | Take advantage of your entrepreneurial instincts. |
| and thriving. Competition creates opportunities and | | | | Large entities typically make decisions by committee |
| penalizes static business models. | | | | and consensus. Speed and agility are your natural |
| Computer Associates, Wang, Digital Equipment, | | | | advantages. |
| Gateway and many other companies, were ahead of | | | | Competition keeps the economic blood running free |
| Dell Computer in assembling and marketing the | | | | and pure. When an entrepreneur succeeds it is easy |
| personal computer. Dell has succeeded spectacularly | | | | to identify the elements most responsible for that |
| while almost all of the early leading pioneers are | | | | success. Equally important is for every failure to |
| either out of business, significantly downsized, or | | | | become an educational opportunity. It is all right to |
| merged. Dell entered this brutally competitive product | | | | make mistakes: once! Learn from mistakes and do |
| category with a fresh business model (customization | | | | not repeat them. |
| of production and direct selling). This disruptive model | | | | Competition insures that our modern world is |
| has proven wildly profitable and popular with | | | | continually advancing, improving and editing out the |
| consumers. Dell continues to evolve and enter new | | | | weak, thus rewarding and encouraging the strong. |
| technologies in a never-ending effort to constantly | | | | The benefits competition provides a free economy is |
| reinvent and remain competitive. | | | | reflective in the vitality and prosperity of the |
| 35 years ago Revlon was the dominant cosmetic | | | | population. Compare this with state controlled |
| brand in the world. Ultima was Revlon’s luxury | | | | countries where central planning eliminates any of the |
| powerhouse, the Revlon brand dominated the middle | | | | creativity and disruptive innovation provided by |
| market and Realistic was a powerhouse in beauty | | | | entrepreneurs. No competition creates a disincentive |
| salons. The founder of Revlon, Charles Revson, was | | | | to growth, opportunity and the healthy economic life |
| an innovator and a visionary. He once famously | | | | so essential to human contentment. |