Lesson #8
Competition Stinks
Before we opened our first OfficeMax store, we faced an initial challenge of figuring out how to enter the marketplace when there were 18 other newly minted superstore chains in the business. Personally, I think competition stinks, although it's not politically appropriate to say this. So does the concept of picking on someone your own size. That implies a 50/50 chance of success, and that isn't good enough for me. Therefore, I spent a lot of my time thinking about how to move the odds in my favor.
To change the odds, one has to change the positioning of the company, the brand, and the offering to differentiate it from the others. This gives the customer a real choice instead of simply a “me, too” alternative.
We at OfficeMax decided to focus on the Rust Belt—an area covering parts of the northeastern United States, mid-Atlantic states, and portions of the eastern Midwest—and gain strength there before playing in anybody else's backyard. Our goal was to have no competition the first two years. We came up with the idea to have three stores in Cleveland, Ohio, and then open locations in Buffalo, New York, and Detroit, Michigan.
Every company, every institution—every anything—always believes somewhere deep down inside that the competitor is smarter, better, or stronger. I don't care if it is Microsoft, Walmart, Intel, or Mercedes-Benz; I guarantee that they are all borderline paranoid, thinking that even the most minuscule competitor is gaining on them. ...
