Don't get bogged down in a price war or a race to imitate a rival's product. Redefine your market instead, says entrepreneur-academic Richard Mammone
The nuthatch and brown creeper are different bird species that look a lot alike and eat insects in the same wooded areas in North America. You might think they compete, but they don't. In accordance with a common arrangement in nature that ecologists call the competitive-exclusion principle, the brown creeper starts searching for insects at the bottom of a tree while the nuthatch starts from the top.
Entrepreneurs can learn from this evolutionary process, which unfortunately isn't very common in the business world. Business competitors will normally compete in a death match unless one finds a new market niche or a new process to address the existing market. The best strategy is to invest a modest amount of energy into an innovation, as the nuthatches did in moving to the higher branches. To start the innovation process that could lead to such a breakthrough, entrepreneurs should perform a detailed competitive analysis.
Original Article: Innovation Is a Better Way to Compete - BusinessWeek
