Stealth competitors can radically change the game

Rex Glanville of Decision Processes International (DPI), a worldwide consulting organisation built on the belief that rational, critical thinking is essential to the survival and growth of every enterprise, believes that the lines of demarcation within business are blurring and companies need to develop strategies that will keep them ahead of the game.

"Complacency is our biggest enemy," says Glanville, speaking at a DPI breakfast in Sandton this week.
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Former giants Polaroid owned their industry but were severely damaged by stealth competitor Sony, who changed the game when they weren't looking. Amazon.com did it to Barnes& Noble and Canon surprised Xerox. None of these companies saw trouble coming.

"A stealth competitor is an entrant into your arena that's not on your radar screen and takes you by surprise," Glanville says.

"Kulula has changed flying for everyone, but most of all, they've changed the field for SAA."

Glanville believes that we can anticipate these stealth competitors who result from new technology, combinations of existing competitors or innovative new strategies that change things and that every company needs to develop a strategy to nullify their threat.

"We must all create strategies that ensure our supremacy over the current competition and establish new playing fields where we are in charge.

"When 3M strategised many years ago, they decided to become an international tape manufacturer, but then a second suggestion was made - that they concentrate on their field of expertise (polymer chemicals) instead - and the future of the company was changed forever," Glanville says.

"Pick 'n Pay revolutionized food retailing in SA to the detriment of Checkers and OK many years ago and have maintained that lead."

Glanville says that companies don't strategize correctly because operational discussions get in the way. He refers to it as the Christopher Columbus school of management: he had no idea where he was headed, where he landed or how he got back, but he did make several successful trips.

"Companies have uncertain strategic management but are operationally competent. This needs to change."

DPI trains company managers to focus on strategy, allocate resources effectively, determine business profiles and identify the driving forces in their companies, promising an advantage over competitors - or you could buy a crystal ball!