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A New View of Competition

November 12th, 2007 @ 8:20 am

4 Comments

Categories: Management, Strategy

Tags: Competition, Advertising & Promotion, Business Structures, Marketing, Finance, Michael Fitzgerald

Competition is on the cover of the latest issue of the Wilson Quarterly, the highly readable intellectual smorgasbord published by the Woodrow Wilson Center.

Its four articles focus on how competitive American life has become, with obvious implications for business. Daniel Akst, in an article entitled “Strive We Must,” argues that there are four points of competition that matter, all of which are worth thinking about for business leaders.

It used to be worse. “19th-century business practices were truly red in tooth and claw, while total output per person was so much lower in those days that merely staying alive was a competitive scramble for most people.”

Life is not as competitive as the media might have us believe. “Our cultural elites live with so much competitive anxiety that their lives simply aren’t representative. Most Americans have more leisure than they did a generation ago, even as the highest-paid earners work like maniacs. And competition of all kinds is worst in places like New York and Los Angeles, where real-estate hysteria and preschool panic afflict even the rich and powerful. The media come to us from those places… Reports from these precincts should be discounted by at least 50 percent.”

It’s our nature. He cites the psychologist David M. Buss thusly: “the desire to mate — and the imbalance between the most desirable partners and the many more people who covet them – “catapults people headlong into the arena of competition with members of their own sex,” even if they don’t always recognize that’s what they’re doing – angling for a promotion, applying eyeliner, cracking jokes – is competitive behavior.”

Competition is good for us. It raises standards of living. It’s fairer than it used to be. It can foster cooperation. “The whole basis for the company is that those within will work together to best those without, taking advantage of informational edges and other advantages to compete more effectively. And management specialists now emphasize the need for companies to forge more collaborative relationships with suppliers, customers and even sometime rivals.”

So, whom should one hire in this more competitive yet collaborative world?

Tyler Cowen, in “The New Invisible Competitors,” argues that there are four types of employees who will do well in a hypercompetitive global economy:

Methodical planners or those who love the game for its own sake. They motivate themselves to get ahead of everyone else, and stay there.

Early risers. Those who like to be first will figure out new ideas before competitors.

Nervous folks, or chokers. The digital world means less conflict for them, and thus fewer opportunities to blow it.

Those with good imaginations. New ideas in fields like design and marketing will be more valuable than number-crunching.

There’s also an essay on the savage competition amongst musicians, and whether that detracts from music itself. Finally, a cautionary essay by Benjamin R. Barber, “The Lost Art of Competition.” He concludes his attack on hypercompetition with a comment on the 19th century thinker John Ruskin, saying:

As an enemy rather than an ally of true freedom, competition is not our friend. To live and to flourish, it is the lost art of cooperation that we need to cultivate.

All in all, it’s an effective passage on both competition and a signal of the continuing emergence of collaboration as a force in both our society and in business.

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  •  
    1

    prao@...

    11/13/07 | Report as spam

    Competition

    The real stressor for the average human being is not competition but the relentlessness of endless competition. Most competitive activities have a end-point when the winner is decided and everyone then takes a break. We have created a world where there is no end-point and everyone can take a break for a while. The only exit strategy is such a world is burn-out.

    Most people have some tolerance for pain and more than a little willingness to win and are willing to put out everything they have - for a while. As they burn-out and move on other people are willing to take their place for the same elusive rewards. This is the story of start-ups and Silicon Valley. We cannot build a society on this model.

  •  
    2

    Michael Fitzgerald

    11/13/07 | Report as spam

    competition

    Silicon Valley would probably be one of the places that wouldn't adhere to Akst's
    claim that most people outside the elite have more leisure time. There was a
    piece in the NYT a couple of months ago about millionaires who felt like they
    had to start another company because have a few million in the bank simply
    wasn't enough to thrive on in the Valley.

    Yet for many people the Valley and its culture has been egalitarian, the
    quintessential level playing field. Perhaps that has passed into yore.

  •  
    3

    mcbridmw

    11/17/07 | Report as spam

    RE: A New View of Competition

    What I hear is that we are enabling dysfunction and it sounds like a very slippery slope. For example, going digital to support 'chokers' to provide 'fewer opportunities to blow it'? I hear a desire for perfection which is entirely sponsored by fear. I would be careful at how we look at and use competition, because often it is simply an exploited fear reflex.

  •  
    4

    Michael Fitzgerald

    11/20/07 | Report as spam

    re: a new view of competition

    I think Cowen was being tongue in cheek with that particular point That said, there seems to be a growing number of people who aren't comfortable with a lot of interaction and yet still can be very productive. Whether these people really represent 'a hitherto-underutilized resource," as Cowen puts it, I think is hard to prove. But it might be true.

    Michael Fitzgerald

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