Competitor Short Quotes

Markets do not automatically generate trust, cooperation or collective action for the common good. Quite the contrary: it is in the nature of economic competition that a participant who breaks the rules will triumph—at least in the short run—over more ethically sensitive competitors.

Big Mountains are a completely different world. You can not conquer them, only rise to their height for a short time; & for that they demand a great deal. The struggle is not with the enemy, or a competitor like in sports, but with yourself, with the feelings of weakness & inadequacy. That struggle appeals to me. It is why I became a mountaineer.

In short, companies that achieve a high return on capital are likely to have a special advantage of some kind. That special advantage keeps competitors from destroying the ability to earn above-average profits.

Failing doesn’t make you a failure. Failing makes you a competitor. Every competitor fails. If you lay it on the line, you will come up short at times. Failure is a part of competing, and embracing that fact is an important component of toughness. Tough people fail, but tough people are not failures. The only failures are those who give up, or give in.

Elite athletes know something that most people don’t—adversity is the best thing that can happen to you. The competitors here at the Games know that humans only improve through adversity by embracing short-term pain.

Danny and Vinny both thought the problem in this case was Eisman’s affinity for Bear Stearns. The most hated firm on Wall Street, famous mainly for its total indifference to the good opinion of its competitors, Eisman identified with the place!

The Peacemaker Colt has now been in production, without change in design, for a century. Buy one to-day and it would be indistinguishable from the one Wyatt Earp wore when he was the Marshal of Dodge City. It is the oldest hand-gun in the world, without question the most famous and, if efficiency in its designated task of maiming and killing be taken as criterion of its worth, then it is also probably the best hand-gun ever made. It is no light thing, it is true, to be wounded by some of the Peacemaker’s more highly esteemed competitors, such as the Luger or Mauser: but the high-velocity, narrow-calibre, steel-cased shell from either of those just goes straight through you, leaving a small neat hole in its wake and spending the bulk of its energy on the distant landscape whereas the large and unjacketed soft-nosed lead bullet from the Colt mushrooms on impact, tearing and smashing bone and muscle and tissue as it goes and expending all its energy on you. In short when a Peacemaker’s bullet hits you in, say, the leg, you don’t curse, step into shelter, roll and light a cigarette one-handed then smartly shoot your assailant between the eyes. When a Peacemaker bullet hits your leg you fall to the ground unconscious, and if it hits the thigh-bone and you are lucky enough to survive the torn arteries and shock, then you will never walk again without crutches because a totally disintegrated femur leaves the surgeon with no option but to cut your leg off. And so I stood absolutely motionless, not breathing, for the Peacemaker Colt that had prompted this unpleasant train of thought was pointed directly at my right thigh. Another thing about the Peacemaker: because of the very heavy and varying trigger pressure required to operate the semi-automatic mechanism, it can be wildly inaccurate unless held in a strong and steady hand. There was no such hope here. The hand that held the Colt, the hand that lay so lightly yet purposefully on the radio-operator’s table, was the steadiest hand I’ve ever seen. It was literally motionless. I could see the hand very clearly. The light in the radio cabin was very dim, the rheostat of the angled table lamp had been turned down until only a faint pool of yellow fell on the scratched metal of the table, cutting the arm off at the cuff, but the hand was very clear. Rock-steady, the gun could have lain no quieter in the marbled hand of a statue. Beyond the pool of light I could half sense, half see the dark outline of a figure leaning back against the bulkhead, head slightly tilted to one side, the white gleam of unwinking eyes under the peak of a hat. My eyes went back to the hand. The angle of the Colt hadn’t varied by a fraction of a degree. Unconsciously, almost, I braced my right leg to meet the impending shock. Defensively, this was a very good move, about as useful as holding up a sheet of newspaper in front of me. I wished to God that Colonel Sam Colt had gone in for inventing something else, something useful, like safety-pins.

And that’s the trap of marginal thinking. You can see the immediate costs of investing, but it’s really hard to accurately see the costs of not investing. When you decide that the upside of investing in the new product isn’t substantial enough while you still have a perfectly acceptable existing product, you aren’t taking into account a future in which somebody else brings the new product to market. You’re assuming everything else—specifically, the money you make on the old product—will continue forever exactly as it has up until now. A company may not see any consequences of that decision for some time. It might not get “caught” in the short term if a competitor doesn’t get ahead. But the company that makes all its decisions through this marginal-costs lens will, eventually, pay the price.

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

At least she was good at archaeology, she mused, even if she was a dismal failure as a woman in Tate’s eyes. “She’s been broody ever since we got here,” Leta said with pursed lips as she glanced from Tate to Cecily. “You two had a blowup, huh?” she asked, pretending innocence. Tate drew in a short breath. “She poured crab bisque on me in front of television cameras.” Cecily drew herself up to her full height. “Pity it wasn’t flaming shish kebab!” she returned fiercely. Leta moved between them. “The Sioux wars are over,” she announced. “That’s what you think,” Cecily muttered, glaring around her at the tall man. Tate’s dark eyes began to twinkle. He’d missed her in his life. Even in a temper, she was refreshing, invigorating. She averted her eyes to the large grass circle outlined by thick corded string. All around it were make-shift shelters on poles, some with canvas tops, with bales of hay to make seats for spectators. The first competition of the day was over and the winners were being announced. A woman-only dance came next, and Leta grimaced as she glanced from one warring face to the other. If she left, there was no telling what might happen. “That’s me,” she said reluctantly, adjusting the number on her back. “Got to run. Wish me luck.” “You know I do,” Cecily said, smiling at her. “Don’t disgrace us,” Tate added with laughter in his eyes. Leta made a face at him, but smiled. “No fighting,” she said, shaking a finger at them as she went to join the other competitors. Tate’s granitelike face had softened as he watched his mother. Whatever his faults, he was a good son.

Elite athletes know something that most people don’t—adversity is the best thing that can happen to you. The competitors here at the Games know that humans only improve through adversity by embracing short-term pain. Ensuring there is no struggle, no challenge, and staying in your wheelhouse is a recipe for spinning your wheels without improving. It’s the days when you have to do things that scare you, when you have to take risks, when you have to push against challenge and difficulty—those are the days that make you stronger, faster, and better overall.

Once a competitor’s move has occurred, the denial of an adequate base for the competitor to meet its goals, coupled with the expectation that this state of affairs will continue, can cause the competitor to withdraw. New entrants, for example, usually have some targets for growth, market share, and ROI, and some time horizon for achieving them. If a new entrant is denied its targets and becomes convinced that it will be a long time before they are met, then it may withdraw or deescalate. Tactics for denying a base include strong price competition, heavy expenditures on research, and so on. Attacking new products in the test-market phase can be an effective way to foretell a firm’s future willingness to fight and can be less expensive than waiting for the introduction to actually occur. Another tactic is using special deals to load customers up with inventory, thereby removing the market for the product and raising the short-run cost of entry. It can be worth paying a substantial short-run price to deny a base if a firm’s market position is threatened. Essential to such a strategy, however, is a good hypothesis about what a competitor’s performance targets and time horizon are. An example of such a situation may be Gillette’s withdrawal from digital watches. Although claiming it had won significant market shares in test markets, Gillette bowed out, citing the substantial investments required to develop technology and margins lower than those available in other areas of its business. Texas Instruments’ strategy of aggressive pricing and rapid technological development in digital watches probably had a substantial impact on this decision.

Capitalism runs on investment, and lawlessness puts investment at risk. No one wants to buy new machinery or more land to plant with commercial crops when there is a strong risk that those machines or crops will be stolen or vandalized by competitors. When it supplanted feudalism, the modern state was supposed to establish a monopoly on violence, on the power to wage war and punish criminals. When the modern state monopolizes violence in this way, it helps create the conditions in which commerce can flourish. The barons’ ramshackle, unruly private militias were scheduled to disappear. Franchetti argued that the key to the development of the mafia in Sicily was that the state had fallen catastrophically short of this ideal. It was untrustworthy because, after 1812, it failed to establish its monopoly on the use of violence. The barons’ power on the ground was such that the central state’s courts and policemen could be pressurized into doing what the local lord wanted. Worse still, it was now no longer only the barons who felt they had the right to use force. Violence became ‘democratized’,

If the global pie stayed the same size, there was no margin for credit. Credit is the difference between today’s pie and tomorrow’s pie. If the pie stays the same, why extend credit? It would be an unacceptable risk unless you believed that the baker or king asking for your money might be able to steal a slice from a competitor. So it was hard to get a loan in the premodern world, and when you got one it was usually small, short-term, and subject to high interest rates. Upstart entrepreneurs thus found it difficult to open new bakeries and great kings who wanted to build palaces or wage wars had no choice but to raise the necessary funds through high taxes and tariffs. That was fine for kings (as long as their subjects remained docile), but a scullery maid who had a great idea for a bakery and wanted to move up in the world generally could only dream of wealth while scrubbing down the royal kitchen’s floors. The Magic Circle of the Modern Economy It was lose-lose. Because credit was limited, people had trouble financing new businesses. Because there were few new businesses, the economy did not grow. Because it did not grow, people assumed it never would, and those who had capital were wary of extending credit. The expectation of stagnation fulfilled itself.

The Delusion of Lasting Success promises that building an enduring company is not only achievable but a worthwhile objective. Yet companies that have outperformed the market for long periods of time are not just rare, they are statistical artifacts that are observable only in retrospect. Companies that achieved lasting success may be best understood as having strung together many short-term successes. Pursuing a dream of enduring greatness may divert attention from the pressing need to win immediate battles. The Delusion of Absolute Performance diverts our attention from the fact that success and failure always take place in a competitive environment. It may be comforting to believe that our success is entirely up to us, but as the example of Kmart demonstrated, a company can improve in absolute terms and still fall further behind in relative terms. Success in business means doing things better than rivals, not just doing things well. Believing that performance is absolute can cause us to take our eye off rivals and to avoid decisions that, while risky, may be essential for survival given the particular context of our industry and its competitive dynamics. The Delusion of the Wrong End of the Stick lets us confuse causes and effects, actions and outcomes. We may look at a handful of extraordinarily successful companies and imagine that doing what they did can lead to success — when it might in fact lead mainly to higher volatility and a lower overall chance of success. Unless we start with the full population of companies and examine what they all did — and how they all fared — we have an incomplete and indeed biased set of information. The Delusion of Organizational Physics implies that the business world offers predictable results, that it conforms to precise laws. It fuels a belief that a given set of actions can work in all settings and ignores the need to adapt to different conditions: intensity of competition, rate of growth, size of competitors, market concentration, regulation, global dispersion of activities, and much more. Claiming that one approach can work everywhere, at all times, for all companies, has a simplistic appeal but doesn’t do justice to the complexities of business. These points, taken together, expose the principal fiction at the heart of so many business books — that a company can choose to be great, that following a few key steps will predictably lead to greatness, that its success is entirely of its own making and not dependent on factors outside its control.

...the centrality of competitiveness as the key to growth is a recurrent EU motif. Two decades of EC directives on increasing competition in every area, from telecommunications to power generation to collateralizing wholesale funding markets for banks, all bear the same ordoliberal imprint. Similarly, the consistent focus on the periphery states’ loss of competitiveness and the need for deep wage and cost reductions therein, while the role of surplus countries in generating the crisis is utterly ignored, speaks to a deeply ordoliberal understanding of economic management. Savers, after all, cannot be sinners. Similarly, the most recent German innovation of a constitutional debt brake (Schuldenbremse) for all EU countries regardless of their business cycles or structural positions, coupled with a new rules-based fiscal treaty as the solution to the crisis, is simply an ever-tighter ordo by another name. If states have broken the rules, the only possible policy is a diet of strict austerity to bring them back into conformity with the rules, plus automatic sanctions for those who cannot stay within the rules. There are no fallacies of composition, only good and bad policies. And since states, from an ordoliberal viewpoint, cannot be relied upon to provide the necessary austerity because they are prone to capture, we must have rules and an independent monetary authority to ensure that states conform to the ordo imperative; hence, the ECB. Then, and only then, will growth return. In the case of Greece and Italy in 2011, if that meant deposing a few democratically elected governments, then so be it. The most remarkable thing about this ordoliberalization of Europe is how it replicates the same error often attributed to the Anglo-American economies: the insistence that all developing states follow their liberal instruction sheets to get rich, the so-called Washington Consensus approach to development that we shall discuss shortly. The basic objection made by late-developing states, such as the countries of East Asia, to the Washington Consensus/Anglo-American idea “liberalize and then growth follows” was twofold. First, this understanding mistakes the outcomes of growth, stable public finances, low inflation, cost competitiveness, and so on, for the causes of growth. Second, the liberal path to growth only makes sense if you are an early developer, since you have no competitors—pace the United Kingdom in the eighteenth century and the United States in the nineteenth century. Yet in the contemporary world, development is almost always state led.

Twenty years? No kidding: twenty years? It’s hard to believe. Twenty years ago, I was—well, I was much younger. My parents were still alive. Two of my grandchildren had not yet been born, and another one, now in college, was an infant. Twenty years ago I didn’t own a cell phone. I didn’t know what quinoa was and I doubt if I had ever tasted kale. There had recently been a war. Now we refer to that one as the First Gulf War, but back then, mercifully, we didn’t know there would be another. Maybe a lot of us weren’t even thinking about the future then. But I was. And I’m a writer. I wrote The Giver on a big machine that had recently taken the place of my much-loved typewriter, and after I printed the pages, very noisily, I had to tear them apart, one by one, at the perforated edges. (When I referred to it as my computer, someone more knowledgeable pointed out that my machine was not a computer. It was a dedicated word processor. “Oh, okay then,” I said, as if I understood the difference.) As I carefully separated those two hundred or so pages, I glanced again at the words on them. I could see that I had written a complete book. It had all the elements of the seventeen or so books I had written before, the same things students of writing list on school quizzes: characters, plot, setting, tension, climax. (Though I didn’t reply as he had hoped to a student who emailed me some years later with the request “Please list all the similes and metaphors in The Giver,” I’m sure it contained those as well.) I had typed THE END after the intentionally ambiguous final paragraphs. But I was aware that this book was different from the many I had already written. My editor, when I gave him the manuscript, realized the same thing. If I had drawn a cartoon of him reading those pages, it would have had a text balloon over his head. The text would have said, simply: Gulp. But that was twenty years ago. If I had written The Giver this year, there would have been no gulp. Maybe a yawn, at most. Ho-hum. In so many recent dystopian novels (and there are exactly that: so many), societies battle and characters die hideously and whole civilizations crumble. None of that in The Giver. It was introspective. Quiet. Short on action. “Introspective, quiet, and short on action” translates to “tough to film.” Katniss Everdeen gets to kill off countless adolescent competitors in various ways during The Hunger Games; that’s exciting movie fare. It sells popcorn. Jonas, riding a bike and musing about his future? Not so much. Although the film rights to The Giver were snapped up early on, it moved forward in spurts and stops for years, as screenplay after screenplay—none of them by me—was

Mrs. Latham, president of the Victorian Oaks Preservation Society, hadn't said much about the nature of this meeting when she'd called a week ago. And Hayley hadn't even thought to ask, she'd been so overjoyed that the proposal from her tiny restoration firm had made the short list. Even with the size of the project-nine separate houses to fully restore-she knew she could do it. She wouldn't be alone. In the projects she'd tackled so far, Hayley had found a reliable group of subcontractors that didn't mind working for an untried woman, young enough to be a daughter to some of them. What she lacked in experience, she hoped she made up for in passion for the work and an ardent commitment to historical accuracy. But what did Mrs. Latham hope to accomplish in meeting with both her and her only competitor together? For an instant, Hayley wished she'd bought herself a briefcase. Still, with her delicate features and flyaway straight, looking businesslike was just a dream. The door opened, revealing an immaculately uniformed maid.

A critical but often ignored impact of FDI is that on the (current and future) domestic competitors. An entry by a TNC through FDI can destroy existing national firms that could have 'grown up' into successful operations without this premature exposure to competition, or it can pre-empt the emergence of domestic competitors. In such cases, short-run productive capabilities are enhanced, as the TNC subsidiary replacing the (current and future) national firms is usually more productive than the latter. But the level of productive capability that the country can attain in the long run becomes lower as a result. This is because TNCs do not, as a rule, transfer the most valuable activities outside their home country, as I will discuss in greater detail later. As a result, there will be a definite ceiling on the level of sophistication that a TNC subsidiary can reach in the long run. To go back to the Toyota example in chapter 1, had Japan liberalized FDI in its automobile industry in the 1960s, Toyota definitely wouldn't be producing the Lexus today-it would have wiped out or, more likely, have become a valued subsidiary of an American carmaker. Given this, a developing country may reasonably decide to forego short-term benefits from FDI in order to increase the chance for its domestic firms to engage in higher-level activities in the long run, by banning FDI in certain sectors or regulating it. This is exactly the same logic as that of infant industry protection that I discussed in the earlier chapters-a country gives up the short-run benefits of free trade in order to create higher productive capabilities in the long run. And it is why, historically, most economic success stories have resorted to regulation of FDI, often in a Draconian manner, as I shall now show.

A weak competitor may resort to dropping prices because it is the only available action for increasing its volume in the short term to stave off disaster. By the late 1970s, Tesco had been suffering because of their legacy of small, town-centre sites but succeeded in taking the industry by storm with their ‘check-out’ campaign. The whole UK retail market became price-driven for several years, before it swung once again towards a market orientation with the battle being fought on location, format and service.

If competitors are determined to grow in a static market, they may start to break the orderly market rules. Producing copies of rivals’ products is tempting because in the short term it ‘steals’ share and makes money. Although competitors with strong technological and marketing skills are unlikely to launch exact copies of rival brands, it is estimated that 97% of new products are not genuine innovations.6 The failure rate of new products is extremely high, around 90% two years after launch, so even though differentiated brands on the whole perform better than me-toos, me-toos are common in markets where innovation is slowing down. Once they get a hold in an industry, there is an inevitable downward pressure on prices.

To fill this gap in the capital market, Davis and Rock set themselves up as a limited partnership, the same legal structure that had been used by a short-lived rival called Draper, Gaither & Anderson.[18] Rather than identifying startups and then seeking out corporate investors, they began by raising a fund that would render corporate investors unnecessary. As the two active, or “general,” partners, Davis and Rock each seeded the fund with $100,000 of their own capital. Then, ignoring the easy loans to be had from the fashionable SBIC structure, they raised just under $3.2 million from some thirty “limited” partners—rich individuals who served as passive investors.[19] The beauty of this size and structure was that the Davis & Rock partnership now had a war chest seven and a half times larger than an SBIC, and with it the ammunition to supply companies with enough capital to grow aggressively. At the same time, by keeping the number of passive investors under the legal threshold of one hundred, the partnership flew under the regulatory radar, avoiding the restrictions that ensnared the SBICs and Doriot’s ARD.[20] Sidestepping yet another weakness to be found in their competitors, Davis and Rock promised at the outset to liquidate their fund after seven years. The general partners had their own money in the fund, and thus a healthy incentive to invest with caution. At the same time, they could deploy the outside partners’ capital for a limited time only. Their caution would be balanced with deliberate aggression. Indeed, everything about the fund’s design was calculated to support an intelligent but forceful growth mentality. Unlike the SBICs, Davis & Rock raised money purely in the form of equity, not debt. The equity providers—that is, the outside limited partners—knew not to expect dividends, so Davis and Rock were free to invest in ambitious startups that used every dollar of capital to expand their business.[21] As general partners, Davis and Rock were personally incentivized to prioritize expansion: they took their compensation in the form of a 20 percent share of the fund’s capital appreciation. Meanwhile, Rock was at pains to extend this equity mentality to the employees of his portfolio companies. Having witnessed the effect of employee share ownership on the early culture of Fairchild, he believed in awarding managers, scientists, and salesmen with stock and stock options. In sum, everybody in the Davis & Rock orbit—the limited partners, the general partners, the entrepreneurs, their key employees—was compensated in the form of equity.

Because these processes and practices are embedded in every meeting, document, decision, interview, and performance discussion, following them becomes second nature over time. And any employee who violates them draws attention to themselves like a person loudly scratching their fingernails across a chalkboard. If, for example, a person spoke up at a meeting and suggested an idea that was obviously geared toward short-term considerations and ignored significant longer-term ones, or proposed something that was competitor- rather than customer-centric, there would be an uncomfortable pause before someone pointed out what was on everyone else’s mind. While this practice may not be unique to Amazon, it is a defining element of its success.

Exile and restoration had impacts on belief, observance, and religious identity that can be discerned even if the forces shaping them remain obscure. Competitors to the One God dropped away; adoration of figurines vanished. Israel's sense of its covenantal obligations came to include not simply ritual performance but, more importantly, each individual's internalized commitment to ethical behavior, a change signified by Jeremiah's proclamation of the "new covenant" in which God "will put My Teaching into their inmost being" (Jer 31:33).

The only groups I willingly joined were spontaneous, short-lived, and usually game-playing.

These groups were a new kind of vehicle: a hive or colony of close genetic relatives, which functioned as a unit (e.g., in foraging and fighting) and reproduced as a unit. These are the motorboating sisters in my example, taking advantage of technological innovations and mechanical engineering that had never before existed. It was another transition. Another kind of group began to function as though it were a single organism, and the genes that got to ride around in colonies crushed the genes that couldn’t “get it together” and rode around in the bodies of more selfish and solitary insects. The colonial insects represent just 2 percent of all insect species, but in a short period of time they claimed the best feeding and breeding sites for themselves, pushed their competitors to marginal grounds, and changed most of the Earth’s terrestrial ecosystems (for example, by enabling the evolution of flowering plants, which need pollinators).43 Now they’re the majority, by weight, of all insects on Earth. What about human beings? Since ancient times, people have likened human societies to beehives. But is this just a loose analogy? If you map the queen of the hive onto the queen or king of a city-state, then yes, it’s loose. A hive or colony has no ruler, no boss. The queen is just the ovary. But if we simply ask whether humans went through the same evolutionary process as bees—a major transition from selfish individualism to groupish hives that prosper when they find a way to suppress free riding—then the analogy gets much tighter. Many animals are social: they live in groups, flocks, or herds. But only a few animals have crossed the threshold and become ultrasocial, which means that they live in very large groups that have some internal structure, enabling them to reap the benefits of the division of labor.44 Beehives and ant nests, with their separate castes of soldiers, scouts, and nursery attendants, are examples of ultrasociality, and so are human societies. One of the key features that has helped all the nonhuman ultra-socials to cross over appears to be the need to defend a shared nest. The biologists Bert Hölldobler and E. O. Wilson summarize the recent finding that ultrasociality (also called “eusociality”)45 is found among a few species of shrimp, aphids, thrips, and beetles, as well as among wasps, bees, ants, and termites: In all the known [species that] display the earliest stages of eusociality, their behavior protects a persistent, defensible resource from predators, parasites, or competitors. The resource is invariably a nest plus dependable food within foraging range of the nest inhabitants.46 Hölldobler and Wilson give supporting roles to two other factors: the need to feed offspring over an extended period (which gives an advantage to species that can recruit siblings or males to help out Mom) and intergroup conflict. All three of these factors applied to those first early wasps camped out together in defensible naturally occurring nests (such as holes in trees). From that point on, the most cooperative groups got to keep the best nesting sites, which they then modified in increasingly elaborate ways to make themselves even more productive and more protected. Their descendants include the honeybees we know today, whose hives have been described as “a factory inside a fortress.”47

Take the value “We treat customers the way we would want to be treated.” That’s pretty tangible, but Bank One had literally identified the ten or twelve behaviors that made that value come to life. Here are some of them: Never let profit center conflicts get in the way of doing what is right for the customer. Give customers a good, fair deal. Great customer relationships take time. Do not try to maximize short-term profits at the expense of building those enduring relationships. Always look for ways to make it easier to do business with us. Communicate daily with your customers. If they are talking to you, they can’t be talking to a competitor. Don’t forget to say thank you. Another value Bank One had was: “We strive to be the low-cost provider through efficient and great operations.” Some of the prescribed behaviors included: Leaner is better. Eliminate bureaucracy. Cut waste relentlessly. Operations should be fast and simple. Value each other’s time. Invest in infrastructure. We should know our business best. We don’t need consultants to tell us what to do.

There are many ways to ask customers why they churn. At Drip, any customer that canceled their account received an automated email within ten minutes of canceling. It said, “Hello, I’m one of the founders of Drip, and I’d love to hear why you decided to cancel your account.” We got a wide range of responses. Some people would tell us they were shutting their business down—which isn’t something we could fix. Others would say they switched to a cheaper tool because they didn’t need our more powerful product. Others switched to a competitor because they needed a feature we didn’t have. The key to getting useful data points out of an exit survey is to keep it short and direct, create a connection (“I’m the founder, and your feedback would help me build a better product!”), and ask for a reply—even if it’s just four or five words. This can give you a glimpse into what potential customers want, which helps guide product decisions. More often than not, you can get a quick win with churn using tactics like an email welcome sequence and in-app onboarding tools to make sure new users see value early. However, pushing churn below 2% or 3% is a long road that unfolds slowly as you refine your marketing and sales language, learn more about your ideal customer, and add more features those customers love (we covered that in the Market chapter).

Goals, Strategies, and Fundamentals Missions are generally long term in nature. Goals translate missions into practical, quantifiable medium-term objectives that then trigger the search for short-term action plans. Goals can be broadly quantified around three main dimensions: profitability, growth, and sustainability. It is important that boards and executive teams understand the interactions and especially the trade-offs between these three dimensions. It is impossible to pursue all three goals simultaneously, at least in the short term. Boards need to address this major challenge with executives, as, at least in the short term and possibly also in the medium term, these three goals cannot be pursued simultaneously. Executive teams thus face clear trade-offs which they need to recognize and manage. Boards are there to support executives with necessary clarifications on the goals that need to be pursued. Strategies are the action plans that executives deploy following the choice of mission by owners and the selection of goals by the board, in collaboration with the executive team. In case growth is chosen as the goal, for example, typical strategic choices are: build, buy, or ally strategies.14 The selection of a strategy does not depend solely on goals, it also depends on company fundamentals: the type of industry the firm operates in, the client’s ecosystem, suppliers, competitors, regulators, where and how the company generates cash flows, the types of risks the company faces and needs to mitigate against, as well as the company’s ability to raise financing. Examples are presented illustrating how strategies are selected by examining cash flow generating opportunities.

Leaders often panic when recessions strike. They go into survival mode, managing quarter-to-quarter and shoring up their numbers by cutting back on the long-term growth projects we’ve described in previous pages. Such actions might please investors in the moment, but they undo hard-won progress the organization has made. This is a big mistake, and one thankfully we avoided. By looking for creative solutions to the financial challenges we faced during the Great Recession, we maintained our investments while still delivering results that outdid our competitors’ performance.

Amazon’s Leadership Principles6 Customer Obsession. Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership. Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say, “that’s not my job.” Invent and Simplify. Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot. Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious. Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best. Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards. Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high-quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed.

Amazon’s Leadership Principles6 Customer Obsession. Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership. Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say, “that’s not my job.” Invent and Simplify. Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot. Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious. Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best. Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards. Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high-quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed. Think Big. Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers. Bias for Action. Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk-taking. Frugality. Accomplish more with less. Constraints breed resourcefulness, self-sufficiency, and invention. There are no extra points for growing headcount, budget size, or fixed expense. Earn Trust. Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.

Most comb jellies have little direct effect on humans, except through a minor role in marine food webs. One species, however, stands apart as the villain of the basal invertebrates. In the 1980s, the Atlantic comb jelly Mnemiopsis was accidentally introduced into the Black Sea, probably in ballast water carried by commercial shipping. Once in its new environment, away from natural competitors and predators, it reproduced rapidly – all the while consuming vast quantities of larval fish and crustaceans. Some (controversial) estimates placed the total seething mass of diminutive comb jellies in the Black Sea at over half a billion tonnes. The local anchovy fishery, already under heavy fishing pressure, was decimated. While ecologists debated what to do, a possible solution arrived, unplanned, in the shape of another accidental introduction. The newcomer was a second comb jelly, this time the voracious Beroe. Fortuitously, Beroe does not eat fish or crustaceans, but is instead a specialist predator of other comb jellies and nothing else. As the invading Beroe now feast on the Mnemiopsis, the fish stocks are showing gradual and welcome signs of recovery.

The competitors here at the Games know that humans only improve through adversity by embracing short-term pain.

The cost-savings from factory farming are slowing down, but Tyson’s control over the marketplace has not loosened. Once the broad-based meat industry was traded away for a vertically integrated one, the deal could not be easily undone. The economies of scale now make it almost impossible for new competitors to enter the field and compete head-to-head with Tyson and its imitators. The tallest ramparts that protect Tyson’s rule are its network of meat factories in places like Waldron. To compete against those facilities, a new company would need to invest hundreds of millions of dollars up front, before the first day of business. It would need animals, of course, and Tyson has much of that supply locked down with its contracts. And a competitor would surely know that even if it built a plant and secured supplies of chickens or hogs, Tyson and its few competitors have the ability to flood the market with product and make prices collapse in the short term, a hardship they could surely endure while an upstart struggled.

Both started at the same time from the left corner of Goebbels’ mouth. But, when the faster fly arrived at the right corner, his slower competitor was already there. “How in the world did you get here ahead of me?” asked the astonished fly, who had been sure of victory. “That was easy—I took the short cut around the back of Goebbels’ head!

the development of brand equity can create associations that can drive market positions, persist over long time periods, and be capable of resisting aggressive competitors. However, it can also involve an initial and ongoing investment which can be substantial and will not necessarily result in short-term profits. Payoffs, when they come, can involve decades. Thus, management of brand equity is difficult, requiring patience and vision.

How Explainer Videos Work For Your Business If you wonder how to take your business to the next level, then explainer videos could be your answer. A short, crisp, informative piece of explainer video is the ultimate key to reach your ideal business leads. Henceforth, you need not worry about keeping your profits high. All you have to do is to invest a part of your money in getting quality, professional explainer videos to boost up your rankings on search engines. Google’s algorithm for search engine rankings includes a part that quantifies the amount of time spent by the visitors to your website. The longer time they spent, the higher will be your ranking. This is why your site needs an explainer video to keep the clock ticking for you. These videos are great ways to get the attention of your visitors; it really keeps them engaged for a long time, provided the videos are interesting. It has been found out that a human brain is more attentive to visuals rather than mere phrases. As readers spend only a few seconds to minutes on each site, quality content with a catchy title would grab their attention, but not always. On the other hand, if they confront an interesting and funny video, they will be attracted and urged to watch the content. That is why explainer videos are smart marketing tools. According to top marketing firms, websites with explainer videos rank higher than others in Google universal searches. In a business, an explainer video offers you a smart platform to reach your ideal customers and introduce your services to them with the reasons for them to choose you over your competitors. What could it be? An explainer video could be anything. You can share your identity, ideas, concepts, issues, solutions, products, services and even arguments. You can bring them all up with videos in just a few seconds. How long could it be? The shorter, the better. Videos more than a 90 seconds could be boring to your visitors. Keeping them short and engaging is the trick to make the visitors stay on your page, which in turn fetches the ranking. Here are a few reasons to justify the need for explainer videos for your business. 1. Creates a virtual connection: The most important aspect of online marketing is to showcase your personality in a smart manner. Your customer is with little or no contact with you in online business. So it is crucial to build a trustworthy bond with your customer to maintain a strong relationship. Explainer videos do this job for you; they offer you an identity that is recognized by your customers which wins their trust. 2. Gains popularity: A good and attractive explainer video is extremely contagious. It is not restricted to your website alone and can be shared with other video hosting sites like YouTube. This means your site gains popularity. People share videos on a higher scale rather than sharing web pages. Moreover, free video hosting sites like YouTube can be accessed even on a Smart phone which is an added advantage. 3. Holds all in one: Website clutter is a serious mistake that directly affects the rankings of a website. With the intention to hike rankings and boost sales, many website owners clutter their site with loads of images, colorful fonts, flash pictures and pop boxes. This could only have adverse effects on the site. It increases the load time of the website and leaves the visitors confounded that they wonder what your site conveys. On the contrary, an explainer video is can be designed to comprise all such smart aspects squeezed into a single video. 4. Resurrects your identity: PPT slides and pop up ads are obsolete and they don’t belong to this era of online business marketing. A colorful, funny and informative video with great visuals can do the magic; it grabs the attention of the audience. This is particularly suitable for multifaceted businesses with multiple products and services. You can create customized videos for each product and

I met with Chad Logan a few days after our first get-together. I told him that I would explain my point of view and then let him decide whether he wanted to work with me on strategy. I said: I think you have a lot of ambition, but you don’t have a strategy. I don’t think it would be useful, right now, to work with your managers on strategies for meeting the 20/20 goal. What I would advise is that you first work to discover the very most promising opportunities for the business. Those opportunities may be internal, fixing bottlenecks and constraints in the way people work, or external. To do this, you should probably pull together a small team of people and take a month to do a review of who your buyers are, who you compete with, and what opportunities exist. It’s normally a good idea to look very closely at what is changing in your business, where you might get a jump on the competition. You should open things up so there are as many useful bits of information on the table as possible. If you want, I can help you structure some of this process and, maybe, help you ask some of the right questions. The end result will be a strategy that is aimed at channeling energy into what seem to be one or two of the most attractive opportunities, where it looks like you can make major inroads or breakthroughs. I can’t tell you in advance how large such opportunities are, or where they may be. I can’t tell you in advance how fast revenues will grow. Perhaps you will want to add new services, or cut back on doing certain things that don’t make a profit. Perhaps you will find it more promising to focus on grabbing the graphics work that currently goes in-house, rather than to competitors. But, in the end, you should have a very short list of the most important things for the company to do. Then you will have a basis for moving forward. That is what I would do were I in your shoes. If you continue down the road you are on you will be counting on motivation to move the company forward. I cannot honestly recommend that as a way forward because business competition is not just a battle of strength and wills; it is also a competition over insights and competencies. My judgment is that motivation, by itself, will not give this company enough of an edge to achieve your goals. Chad Logan thanked me and, a week later, retained someone else to help him. The new consultant took Logan and his department managers through an exercise he called “Visioning.” The gist of it was the question “How big do you think this company can be?” In the morning they stretched their aspirations from “bigger” to “very much bigger.” Then, in the afternoon, the facilitator challenged them to an even grander vision: “Think twice as big as that,” he pressed. Logan

As we reasoned, if our Chinese operations couldn’t beat their local competitors in China, how would we beat them when these local players eventually matured and expanded to developed markets? We started hiring talented Chinese locals for leadership positions, rather than bringing in expats, and developing more local sourcing for our products. Whereas companies tend to take a big brother approach, with corporate or business headquarters dictating solutions and reserving the right to sign off on projects, we gave our teams in China more autonomy and control as they became more capable. Our strategy of locating R&D facilities in developing countries helped us as well, not just because we could squeeze more value out of our R&D spending, but because we built up local expertise capable of designing products with features and specifications that local consumers wanted and that compared well with the offerings of local competitors.

I asked our business leaders in the depths of the recession to begin working with their suppliers to prepare for the recovery. This seemed impossible to leaders at the time, since many economists and some of my staff were predicting that we’d see an L-shaped recovery—one that was essentially nonexistent. Our sales, according to this view, would never rebound to their prerecession levels. I insisted that recovery would come, just as it always had in the past. And when it did, our short-cycle businesses had to make sure they were first in line for supplies. Our leaders began these conversations, working with suppliers up front to lock in first priority over our competitors when the recovery came. This represented independent thinking on our part—our competitors weren’t doing this. We also took the opportunity to negotiate better payment terms, price reductions, and long-term deals, which were all easier to obtain during a recession. As a result of this effort, we got a big lift as the economy improved, outpacing our competitors in our sales growth, to the delight of our investors.

Simple Ways To Harness The Power Of Tiktok For Business Success In 2020, social media has been empowered in the world of digital marketing. TikTok is one of the traditional video-sharing platforms, for all the individual and business accounts use this platform to entertain people. TikTok gives you an amazing way to share your posts with your audience and get more visibility to your website. Make sure you can only post your video through reactions. TikTok allows you to share 15-second videos with a variety of topics. It gives different songs with filters to shoot your video directly from your mobile device. But many also struggle to exactly use TikTok for business purposes. Here are some simple ways to harness the power of TikTok for business success. TikTok On Business TikTok is a great opportunity to start your business, promote your brand, and create a connection with your audience and brand by using engaging videos. It is one of the most popular social media in the world because it connects with a wider audience. Under this updated world, everything is changed into online marketing and purchasing. This is the big advantage to start your business with this social media. TikTok is relative to a younger audience, so you should target teens and promote your brand relevant to their needs and interest to get better positive results. Create Engaging Contents TikTok is only a place to make fun and creativity. TikTok short-form videos easily capture the audience's attention because of the entertaining nature. It gives the big opportunity to create your content that focuses more on the fun and entertaining to connect the wider audience. So, you don’t need to feel the pressure of creating your content. You can simply make your video with an effective background and showing your product. But your main goal is to keep managing your product offers. Get More Influencers There are lots of ways to take advantage of the platform to promote your brand. One easy way to advertise your products on TikTok via influencers. You need to find the right influencer to develop your business. If you grow your TikTok likes, you can improve your brand identity and get more profit. Also, you can analyze which kind of products you offer to get the best and positive results. If you share more videos whether or not they are relevant to your industry, you can change to become a good influencer. But, you need to post your stories frequently. Promote Hashtag Challenges If you add your branded hashtag with your video, you can get more visibility in your audience. A hashtag challenge is one of the effective ways to reach your targeted audience to talk about your business. The main goal of the hashtag challenge is to encourage your audience and create a brand identity. Most of the users love to participate in these challenges. TikTok Growth TikTok is undoubtedly a powerful social media tool with billions of followers sharing their expressions every day. This is a new platform compared to other social media networks, but it contains large competitors. It is worth spending your time developing for the benefit of your business.

Pricing policy today is basically guess work,” he told me in the early 2000s. “What you are doing is pioneering work. And I think that it will be quite some time before any of the competitors catch on.”6 Shortly before his death in 2005, he provided a testimonial for Manage for Profit, not for Market Share, a book which I co-wrote with two colleagues: “Market share and profitability have to be balanced and profitability has often been neglected. This book is therefore a greatly needed correction.

At first I was a bit apprehensive about no longer specializing in second-mortgage loans, because I had worked so hard to learn the business and establish some great contacts.  When I finally made the decision, however, the reasoning I used was destined to become an integral part of my thinking for the rest of my life. That reasoning is encapsulated in the Leapfrog Theory, which states:  No one has an obligation—moral, legal, or otherwise—to "work his way up through the ranks."  Every human being possesses an inalienable right to make a unilateral decision to redirect his career and begin operating on a higher level at any time that he, and he alone, believes he is ready. If one aspires to great accomplishments, he must recognize that the quickest way to the top is not by fighting his way through the pack, but by leapfrogging over it.  There is, however, a catch.  If you aren't prepared to rise above the competition, then, in spite of any bold proclamations, the realities of the Business World Jungle will knock you right back into the pack in short order.  In other words, even though you have a perfect right to proclaim that you're ready to move beyond your competitors, no amount of chest-pounding can overcome reality.

Amazon Leadership Principles “We use our Leadership Principles every day, whether we’re discussing ideas for new projects or deciding on the best approach to solving a problem. It is just one of the things that makes Amazon peculiar [a word used by Bezos and most Amazonians].”30 Customer Obsession: Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership: Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job.” Invent and Simplify: Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot: Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious: Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them.

I read annual reports of the company I’m looking at, and I read the annual reports of the competitors—that is the main source of material.

The single most important decision in evaluating a business is pricing power. If you have the power to raise prices without losing business to a competitor, you’ve got a very good business.

In the hardest moments of a long race, the athlete’s entire conscious experience of reality boils down to a desire to continue pitted against a desire to quit. Nothing else remains. The athlete is no longer a student or a teacher or a salesman. He is no longer a son or a father or a husband. He has no social roles or human connections whatsoever. He is utterly alone. He no longer has any possessions. There is no yesterday and no tomorrow, only now. The agony of extreme endurance fatigue crowds out every thought and feeling except one: the goal of reaching the finish line. The sensations within the body – burning lungs, screaming muscles, whole-body enervation – exist only as the substance of the desire to quit. What little of the external environment the athlete is aware of – the road ahead, the competitor behind, the urgings of onlookers – exists only as the substance of the desire to continue. The desire to continue versus the desire to quit – the athlete is this and this alone until he chooses one or the other. And when the choice is made he briefly becomes either persevering or quitting until, after he has stopped at the finish line or, God forbid, short of it, the stripped-away layers are piled back on and he becomes his old self again. Only not quite. He is changed, for better or worse.

Mind you, I'm not saying a word against old Kipper. The salt of the earth. But nobody could have called him a knock-out in the way of looks. Having gone in a lot for boxing from his earliest years, he had the cauliflower ear of which I had spoken to Aunt Dahlia and in addition to this a nose which some hidden hand had knocked slightly out of the straight. He would, in short, have been an unsafe entrant to have backed in a beauty contest, even if the only other competitors had been Boris Karloff, King Kong and Oofy Prosser of the Drones.

Integrity, honesty, and decency are long-term cultural investments. Their purpose is not to make the quarter, beat a competitor, or attract a new employee. Their purpose is to create a better place to work and to make the company a better one to do business with in the long run. This value does not come for free. In the short run it may cost you deals, people, and investors, which is why most companies cannot bring themselves to actually, really, enforce it. But as we’ll see, the failure to enforce good conduct often brings modern companies to their knees.

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