6 Ways to Overcome the Competition | Red Queen Effect

Model Name : Red Queen Effect
Creator : Leigh Van Valen
Year : 1973
Purpose : How to stay ahead of the competition

“It is not the strongest species that survives, nor the most intelligent, but the one that is most adaptive to change.”

This statement by Charles Darwin explains a lot about surviving life and winning the competition.

When we put the spotlight on the business world, it can easily be seen that every business owner is rooted in their own “Red Queen.” It is a metaphor used in the world of business to define the fruitless efforts of businesses to surpass the competition.

Typically, companies study their competition, their strengths and weaknesses to come up with a strategy that boosts their profits and sales. This is quite a practical way of staying ahead of the competition.

However, some companies might fail to achieve their targets or goals despite their efforts to outmaneuver the competition; the company fails to move forward or grow. But, why? Well, the culprit is the “Red Queen”!

The basic concept of the Red Queen Effect is to continually evolve, adapt and multiply not only for incessant production but also to simply survive within their competitive settings.

In order to survive another day we have to run fast and smart – not hard! Wondering how to do it?

#1 Keep Evolving:

In this world of technology, everything needs up-gradation every now and then. Hence, if we fail to keep moving and keep upgrading, we will stop exiting!

#2 Draw a Distinction:

New services or new product development can really make you stand out in the business world. It may also boost your sales and attract new businesses. The ability to accommodate your customers/clients’ needs and think differently would enable you to stay ahead of your competitors. Use customers’ feedback to improve your service or product.

#3 Manage Your Mental Resources:

Do you have a packed schedule at work? Is your mailbox full of messages? Are you interrupted by constant distortions and noise while working? With these conditions, it is extremely difficult to think clearly and look at the big picture.

To generate novel ideas, we should have the ability to organize our mental resources, but It’s not as easy as it seems. Creative thinking is a process that requires tranquillity with no disturbances around. In retrospect, Newton came up with his gravitational law while he was sitting idly under a tree.

According to Daniel Goleman, our capability to maintain clear focus as well as regenerate and refocus mentally is a crucial skill that regulates success in all domains of our lives.

#4 Go With the Flow:

It is essential to recognize how the world works rather than focusing on how we want it to work. It’s easy to say that the world is wrong and sit back to see what happens when the world isn’t working the way we want it to. What happens next? You will fall behind which will make it even harder to catch up with the rapid-changing world.

#5 Implementing Ideas:

A company or an organization might come up with a novel and different idea that’s alien to its competitors. While this idea may give a competitive edge to the company that it needs for growth, various factors can cause hindrance in the way to success and growth.

This would prevent the company to move forward. The company may have an innovative service or product, but moving this product or service past the idea stage generally requires competence, capital, and the enthusiasm to take risk.

#6 Keep Thinking Out of The Box:

Your competitors must be trying as hard as you to stay ahead of the competition. But, what makes you surpass their efforts? Well, your constant consideration about how to improve your business model results.

Outperforming your competitors and staying ahead of them requires constant “outside the box thinking.” Try to come up with a new innovation that surpasses the existing one as fast as possible! This survival business strategy is very crucial for both existing companies and new start-ups.

The Invisible Trap of Red Queen

Product lifecycles are dwindling dramatically across all businesses. In the automotive industry, for instance, a six-year model and a four-year development cycle were once standard practice. Today, it is below 24 months, and various business leaders are targeting to bring it down to 12 months. This not only results in sprouting new markets but also new competitors.

The majority of the companies react to this challenge with an attitude of “work faster and harder.” They invest more in familiar resources and core competencies. But, is it a winning proposition?

Well, the answer is simple!

This approach results in doing more of the same thing, just at a faster pace. Hence, the companies get trapped in the “Red Queen.” So, wouldn’t it be better to run smarter rather than running harder?!

Important Tip: As the world is continuously evolving, never use history as your guide for action. What worked for you in the past won’t necessarily work again!

Anyone can fall prey to the Red Queen at any time! Therefore, to make sure you are one step ahead, consider asking yourself the following questions on a frequent basis:

• Does my product or service have an element of uniqueness?
• Does my competitor have a similar product or service?
• Am I meeting the changing needs of my customers/clients?
• Do I have the appropriate strategy to implement my innovative idea?
• Do I have the knowledge and know-how of implementing my novel idea?
• Is my company co-evolving with the changing systems?
• Has my competitor surpassed my innovation?
• Do I need to come up with another innovation?

Final Thoughts

To sum up, focus on running smarter rather than running harder and remember, innovation is the key to the Red Queen effect. Your business requires constant creative ideas to boosts your sales.

However, your competitor might come up with another innovation to outshine your creative idea. So, embrace the inspiration of another fresh and different idea in order to always stay one step ahead!