Have You Replaced Your Good Idea With Your Competitor’s Lousy One?

As I get older, I become a bigger believer in the phrase “The Only Constant is Change”. I think we’re all familiar with a business that seems to have it all figured out. We really envy something about the company: their marketing approach, the service they provide or their store layout. We wish we had thought of their great idea first! What if that great idea- what you envy- is no longer that attractive?
Dell Computer is a good example. They aggressively pursued the idea of selling PCs directly to consumers “over the Internet and phone”. Great idea at the time. H-P recently surpassed Dell in worldwide sale of PCs for the first time since 2003. How?
For several years, H-P had tried to fight Dell on Dell’s home turf. “HP was concentrating its resources to fight Dell where Dell was strong, in direct sales…”. They were neglecting retail sales, which was H-P’s strength. The PC operations “were barely profitable, morale was foundering and some investors were suggesting H-P get out of PCs altogether”.
What changed? First, H-P moved it focus on its strength, retail sales. It fixed logistical snafus and built better relationships with retailers. At the same time, Dell’s internet and phone distribution strategy was becoming less effective. In fact, Dell has announced plans to sell PCs through retailer Wal-Mart.

The Lesson: You competitor’s great idea may become less attractive as the industry changes. Keep in mind what your strengths are, and how change is affecting both you and your competitor.
Your Homework: Do you have a competitor with a great business idea that has fallen flat, due to changes in your business? How did the business change affect you? Is there a good idea that is unique to your business? Have others tried to copy it?
(Source: “How H-P Reclaimed Its PC Lead Over Dell”, Wall Street Journal, 6-4-07)