Sharing Daily Discoveries About Personal Finance And Business Topics

Trying To Suppress Competition or Simply Working In Being The Best

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Today while attending this drone information session there was a lot of conversation on how certain businesses feel threatened in the sense that the barrier to entry for their industry isn’t high enough as they don’t want to see just anyone just deciding one day that they can pick up a drone from a store and them start a photography business. This essentially undermines the companies that have to go through a lot of technicalities to get permission to do so. It felt like the taxi companies versus Uber stories I read awhile back.

I was then thinking how as a business is it better to invest your energy in trying to suppress your potential competition or is it better to just be the best and let your quality speak for itself? This is one of those things where morally we would all probably say just be the best. However, the reality is most businesses probably do use some kind of suppression strategy of sorts to try and stay on top.

It made me think of an example with video games where the company EA was making these Madden NFL games which sold a lot. However, one of its competitor 2K games made its own NFL football game which critics raved as simply being better. Therefore EA’s dominance in that market was in jeopardy. Eventually what happened was that EA essentially got the exclusive rights to use the NFL license which means the other companies could no longer do so. Like there a lot of companies simply use these kinds of techniques as they want to stay in business.

If I am not mistaken I believe one of the executives in the company also justified it by saying something along the lines of they could have just sat back and said “those were great times we had” or something like that in regards to dominating the market or they could do something to keep it going. In that case it was basically stopping competition completely.

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