I must admit that there are times when I am critical of my competitors for one reason or another. I guess, we all are, whether we articulate it or not. They may have beat us to an event or a product. Or, they may have copied a promotion. Sometimes, it is simply because they are there and there is constant pressure of competing in a challenging consumer environment. Is it really slow today or is my competitor beating me in the market place?
I remember when there was word that one of my competitors was selling out, an acquaintance walked up to me and mentioned that it may be nice to have the market to myself. I was taken aback for a while and then blurted “I don’t think that will benefit me at all”. I added, “Competition is good for business”.
In school, I was always fascinated by game theory- looking at how different competing “players” make rational decisions given a set of rules and outcomes. The concept of a Win-Win scenario sounds well and good, but, a mathematical model that can prove that it is actually the most optimal set of actions for various competitive players sold me to the concept. In Jefa’s world, numbers don’t lie!
One particular “model” I like is called the Prisoner’s Dilemma. The theoretical model goes a little something like this: there are two prisoners who are believed to have committed a crime together, let us name them Anna and Jack. If Anna rats Jack out, then, Anna is going to get no sentence but Jack will be stuck in prison for a long time. If Jack rats Anna out, it will be the reverse outcome. The worst outcome is when they rat each other out. And, if they both “cooperate”, everyone may walk away with very little harm done- in economic terms, this game will result in the best outcome! Win-Win!!
You may think to yourself, “Yeah, right. In what world would two independent players choose to “cooperate” with each other, at the risk of being out-maneuvered”? I wonder about this myself. I am a naturally competitive person, and if you don’t know it yet, you are invited to play poker or scrabble with me one day! Against my instinct, most of the time, especially in Main Street America, collaboration is key.
Consumer choice. In as much as you cannot make everyone happy, consumers love the ability to choose from various options. Food and retail in particular, are not exclusive experiences. People like to eat, drink and shop at different places. More usually better.
Finding common outcomes . Collaboration with “competitive” businesses means that we must identify mutually acceptable outcomes. For example, our downtown Shop and Dine event was created with the outcome of encouraging people to shop downtown. It would not be successful if I did it on my own.
Bustling Main Street. Have you ever driven by a town and said, “Wow, there are so many cute local storefronts! I must shop there”? I have, numerous times. A bustling Main Street attracts consumers not just locally but travelers and visitors from other towns in the area. Our town is called “No Man’s Land” because for a while it was not part of any state, literally a town in the middle of nowhere. What sounds like a negative, can also be used to its advantage, if there is a bustling downtown.
Collaboration creates a Win-Win scenario. But, it also lead to a Win-Win-Win. Collaboration leads to a good outcomes for all player, “Win-Win”, which leads to more local economic activity, which hopefully will lead to more taxes and better community services, which will lead to growth, which will lead to more local spending. Win-Win-Win