Page 218 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

extreme situations, and is rightly prevented, but, by trying to
dominate, a firm becomes better and actually benefits customers.
This links closely with two other points: know the limits to what you
can do, and go no further. It is vital that your business is accepted
in the markets where you operate, so go as far as possible without
alienating customers and communities.

Several key questions will help you decide the limit. Is the action
good for the customer? Does it break any laws? Will it directly hurt
a competitor? Will it antagonize increasingly influential special
interest groups? The right and only answers are, in order: yes, no,
no, and no. Serving a customer better than anyone else is vital;
targeting a competitor without producing any real benefit for the
customer is unnecessary and counter-productive (customers may
resent you).

Also important is the need to maintain a relentless focus on
competitiveness. This means taking action in two ways. Instill a
competitive, customer-focused, entrepreneurial culture, understand
what your competitive advantage is—and then exploit it ruthlessly
and continually.

Two other points are significant. Use your competitors’ weaknesses
to your advantage, but avoid going head to head or competing
directly. The danger of direct confrontation is that you will focus too
much on competitors at the expense of customers. Finally, develop
the right attitudes in yourself and your colleagues. Most people have
a natural will to win, so use this. This requires restless impatience,
an action-oriented approach, and a desire to change the status quo
and constantly improve.

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