Competition, Innovation & The Way of the Neanderthal

According to Charles Darwin, evolution is a slow gradual and continuous change resulting from inter- and intra-species competition and changes in the environment. Later theorists have coined the term Punctuated Equilibrium to address the fact that some species live quite well for extended periods of time without any noticeable change then suddenly evolve, rapidly, in response to some change in the external environment.

Homo erectus is a great example. It managed to remain fairly consistent in appearance over a broad range for over a million years. Then, with a change in environment, it rapidly diversified into new species, one giving birth eventually to ourselves. In reality, both gradual Darwinian and Punctuated Equilibrium models are at play in varying degrees. That is, poor old homo erectus had to deal with both competition form fellow homos and changes in the environment.

Again, as I always point out, there's a lesson here for business strategists. Owners of a successful product often don't have reason or the will to change. Why change course when things are going so well? I'd argue that they won't stay that way for long. If your business is in a good place, lots of others are going to want to compete with you and they will. Think Neanderthals who thrived for  a couple hundred thousand years until we showed up. The same will happen to any business, all fun and games until those damned Cro-Magnons make their way into the neighborhood.

In addition to new competitors, environmental changes happen too. Just as warm and cool glacial periods effected hominid evolution and gave rise and fall to countless species, new innovations can wreak havoc on your business as well. An example would be the print and television advertising market. They didn't see the internet coming and failed to adapt. And since they certainly weren't pre-adapted, both are probably going to go the way of the neanderthal as well.

And unless you want to go the Neanderthal route, be prepared. Management practices can help. Scan, monitor and react. Invest in research and stay current. You have to be wary of and keep ahead of not only the current or future competition for your product, but also of seismic changes that can effect your industry.

Image Credit: English: Neanderthal exhibition - 16 to 26 september 2009 - centre courrier - Annecy (France). Exhibition by scientists and plasticians, as Dick Claesen et Ludo Vermeulen, associated with Richard Neave, medical artist of Manchester University.