There are two common types of behavior I have noticed in people regarding their competition. You have the competition driven people, and the competition denial people .

The first constantly monitor their competitor’s activity by visiting their websites & forums or googling them constantly, while the latter meticulously try to avoid any piece of text mentioning their names.  Sometimes, the latter behaves like the former by accident, triggered by some source of information they have read by mistake… Both emotionally driven behaviors are very dangerous for their business.

A third widespread behavior, linked to the same concept, is to not enter a market because of the presence of one or more competitors or even worse, entering a market without studying the competition in detail. All these types of behavior will make your business decisions weaker. The solution is to take your competition for what it is, no more, no less and try to intelligently decode your emotions and thoughts (both are linked).

When someone is competition driven, he will often take any of the competition’s initiatives as something he doesn’t have (and therefore he must have), instead of taking it for what it is: an initiative that can be equally good or bad.  The resulting action is to try copying the competitor’s ideas (but perhaps doing them better…). The problem with that behavior is that the competition will always be significantly in advance and the market will inevitably perceive him as the follower, not the leader, constantly competing on basic stuff such as features & pricing.  It’s not only his innovation that will be affected, but his overall entrepreneur’s ability to take good decisions.  Being so abnormally obsessed by a competitor can be the start of very serious trouble possibly leading to burnout or worse, to the abandonment of the venture.  His fear of competition is irrational.  Many of his important decisions will be biased by his distorted perception of his challengers.  It’s not how he should develop a wealthy company.

Competition denial on the other hand, is the action of ignoring the competition completely. This is a very commonly suggested strategy to solve the results of competition driven behavior. That is, by ignoring anything the competition do, his judgment, innovation & decisions are not affected by what they are doing. After all, he may say, listening to the market and customers is the only valuable thing to do.  Instead of being competition driven, he becomes customer driven.  It’s a seducing way to drive your business, but ignoring the opponent can hurt you as much as being obsessed by them.

If you know the enemy and know yourself, you need not fear the result of a hundred battles.  If you know yourself but not the enemy, for every victory gained you will also suffer a defeat.  If you know neither the enemy nor yourself, you will succumb in every battle.

Sun Tzu, The Art Of War

This is something I learnt from practicing martial arts. Before an important fight, you must watch videos of your opponents previous battles (or previous fights in a competition).  Watch how he moves, what he is good at, what he sucks at.  It will helps you develop effective ways to attack him and defend yourself.  Strategy is not the only important thing in a battle.  Attitude can make all the difference.  If you have a very determined opponent in front of you, this will affect your morale during the battle, and therefore your performance.  Invest in strategy by analyzing the market, including competitors, and in self confidence.  The former will help your differentiation in the market.  The later will surely contribute to making your competitor fear you, leading them to one or both of the unwanted behaviors described in this post, and making you the leader. Maybe.