Keeping Your Competition Closer: The Psychological and Strategic Advantages of Monitoring Your Rivals

Art of Competition

In the cutthroat world of business, competition is a constant reality. From small startups to global conglomerates, companies are always looking for ways to gain an edge over their rivals. However, rather than trying to outmaneuver or outsmart your competition, research suggests that keeping a close eye on them may be the key to success. By monitoring your competition, you can gain valuable insights into their strategies, strengths, and weaknesses, which can help you to improve your own performance and stay ahead of the game

History Teach Us: 

One of the most famous example of the benefits of monitoring your competition comes from the world of sports. In the 1970s and 1980s, the Soviet Union dominated the world of gymnastics, winning numerous Olympic and World Championship medals. However, in the late 1980s, the United States began to catch up. According to a research paper by Daniel Kahneman and Amos Tversky, the key to this success was the U.S. team's focus on monitoring their rivals. By carefully studying the Soviet gymnasts' routines and techniques, the U.S. team was able to identify their strengths and weaknesses, and develop strategies to counter them. This helped the U.S. team to close the gap and eventually surpass the Soviet gymnasts, winning multiple Olympic gold medals in the 1990s.

Relevant Today Also:

In the corporate world, monitoring your competition can have similar benefits. By keeping a close eye on your rivals, you can gain valuable insights into their strategies, strengths, and weaknesses, which can help you to improve your own performance. For example, if a rival company has a particularly effective marketing campaign, you can analyze it to understand what makes it so successful, and then use this knowledge to improve your own marketing efforts. Similarly, if a rival company is struggling in a particular area, you can use this information to identify opportunities for growth and expansion.

Furthermore, monitoring your competition can also help you to anticipate their next moves. By keeping track of their activities, you can identify patterns and trends that can give you a sense of what they're planning. This can help you to stay ahead of the curve and prepare for potential threats or opportunities.

Case of East India Company : 

One of the most notable examples of the strategic advantages of monitoring your competition is the story of the East India Company and the Dutch East India Company in the 17th century. Both companies were vying for control of the lucrative spice trade in the East Indies. The Dutch company had a significant head start, but the East India Company was able to close the gap by carefully monitoring their rival's activities. They used this information to identify the Dutch company's strengths and weaknesses, and develop strategies to counter them. This helped the East India Company to eventually surpass the Dutch company and become one of the most powerful and influential trading companies in the world.

Parting Thoughts : 

In today's fast-paced and competitive business environment, it's more important than ever to keep a close eye on your competition. By monitoring your rivals, you can gain valuable insights into their strategies, strengths, and weaknesses, which can help you to improve your own performance. Furthermore, by keeping track of their activities, you can anticipate their next moves and stay ahead of the curve. It is a time tested strategy and as relevant today as it was in the past.

Citations and references:

• Kahneman, D., & Tversky, A. (1973). On the psychology of prediction. Psychological Review, 80(4), 237-251.
• East India Company - Wikipedia (https://en.wikipedia.org/wiki/East_India_Company)
• Dutch East India