It’s easy to get caught up in what other businesses are doing. We spend hours trawling through their websites, dissecting their social media strategies, and wondering how we measure up. But while we’re busy obsessing over the competition, we often neglect the most important thing: our own business.
Now, I’m not saying you should ignore your competitors altogether. It’s important to be aware of what they’re doing, to understand the market landscape. But don’t let them dictate your every move. Don’t get so caught up in trying to keep up with the Joneses that you lose sight of your own unique strengths and goals.
It is easy to get caught up in our subjective view of our place in the market. It is vital to strive for objectivity and use the data we have available to us to our advantage.
Let me illustrate my point with a couple of stories from the camera industry.
Kodak: A Cautionary Tale
Remember Kodak? They were the undisputed kings of photography for over a century. Back in 1976, at their peak, they controlled a whopping 90% of the US film market and a staggering 85% of camera sales. They were absolutely raking it in, generating a cool $16 billion in annual revenue.
But then came the digital revolution, and Kodak, with its deep roots in film, faced a crossroads. Now, here’s the thing: they weren’t completely blind to the change. In fact, they invented the first digital camera back in 1975! But instead of seizing this opportunity, they hesitated, clinging to their lucrative film business.
Their CEO in the 90s, George Fisher, saw the writing on the wall.
He knew digital was the future, and he fought tooth and nail to steer Kodak in that direction. He invested in digital technology, launched new cameras, and tried to shift the company’s focus. But he was up against a deeply entrenched culture, resistant to change. The old guard, the film fanatics, they had too much power, too much influence. They blocked him at every turn, clinging desperately to the past.
The result? Kodak, a company that once seemed invincible, filed for bankruptcy in 2012. Their revenue had plummeted to a meagre $2.1 billion. A stark reminder that even giants can fall if they fail to adapt to a changing world, and that internal resistance to new ideas can be a company’s downfall.
GoPro: A Story of Success
Now, let’s talk about GoPro. Nick Woodman, a surfer with a passion for adventure, simply wanted a camera that could keep up with him and his mates.
He wasn’t interested in fancy features or competing with the big brands. He just wanted something that worked, something durable, something that could handle the waves and the wipeouts.
And with that simple desire, he created a revolution. While the big camera brands were busy focusing on megapixels and zoom lenses, Woodman carved his own path. He built a camera that was tough as nails, waterproof, and incredibly easy to use. He created a whole new market – the action camera.
GoPro’s success is a testament to the power of authenticity and focusing on a specific need. In 2004, they started with a modest $150,000 in revenue. But fast forward to 2014, and they were shifting a staggering 3.8 million cameras in the US alone, generating over $1.3 billion in revenue. That’s what I call catching the wave! In 2023 the revenue was still at $1 billion…down from their peak due to lower cost competitors entering the market but still pretty solid.
Woodman didn’t set out to build a billion-dollar company. He set out to solve a problem, and in doing so, he built something truly remarkable.
The Importance of Focusing on Your Own Business
So, what can we learn from these two contrasting stories?
Firstly, don’t be afraid to embrace new ideas and technologies. The business world is constantly evolving, and those who adapt and innovate will thrive.
Secondly, trust your instincts, but don’t ignore the facts. Do your research, understand your market, and be open to new perspectives.
Many new clients come to us wanting to dominate a particular keyword or two in the search engines that they feel they have earned the right to dominate or that if they do dominate in the top positions then they will grow market share.
Unfortunately the data usually tells a different story. Often they are highly competitive keywords, with a high cost-per-click and unless the webiste is very convincing then it is very hard to get a viable cost per conversion.
In these cases we work with them to develop a more data-driven approach, focusing on keywords that are more relevant to their target audience and more likely to convert.
After working with hundreds of small businesses as far as I can see the key is to find your niche and cultivate it. What makes your business unique? What can you offer that no one else can? Focus on your strengths, play to your advantages, and don’t get distracted by what the competition is doing.
Instead of worrying about what’s happening in your neighbour’s garden, focus on tending your own patch. Nurture your strengths, cultivate your unique offerings, and watch your business bloom.
