Ideas are Currency

By Peter Granata, president, Granata Design and the Marine Design Resource Alliance — Does success follow a company that decides to replicate or assimilate someone else’s products? Imitation is the sincerest form of flattery but will it be competitive?  Every time a company elects to take the easy way out and copy a someone else’s idea, aren’t they forced to compete on price alone?

When a company copies what is popular they can only expect that a small percentage of the market will be attracted to their product, either because it’s out of brand loyalty, or convenience, or price. (Read that again, a small percentage of the market.) If one is really trying to do the best thing for their company’s stakeholders, one would endeavor to succeed in the market with the least amount of competition. It’s about creating distinction. And it’s about building a good reputation.

In many cases the niche market offers more opportunity for success than the broader market.

Success in the specialty arena allows better profits, does more toward establishing brand loyalty, and distinguishes the company in ways one could never afford to advertise with the press. It allows one’s company to stand out from the rest.

Not to be overlooked: by competing in a niche market one sends a very energizing message to the workforce, a message that encourages them to explore and find unique ways in which to make the company and the product more successful.

The companies that continue to replicate what someone else has already brought to market do not have a future in this economy. For proof, look at China and how it’s affecting our markets. Anybody with a business sense and a valid passport can travel to China and within a reasonably short time find a company that will be willing to replicate anything we sell here for less money.

At this moment the advantage goes to companies here in the States that continue to research and develop new and unique product, or at least, updated product every year. We have that advantage because each new model year we can create something new to offer the market. The copycats will take those good ideas to China and have them built for less by the next model year. That means the product they sell will always be a year old.

Old product that is cheaper may have its advantages, but it also speaks volumes about how and what your company thinks of its customers. That’s a message that no one wants to broadcast.

In case you haven’t already decided to change the way you do business, now may be an excellent time. Invest in the Research and Development you need to lead your niche with new product opportunities.

Innovation = Ideas! These are the currency in today’s business world. Invest wisely.