Are Competitors Really Stakeholders? Yes!

By far the most popular posts on my marketing blog are those about competitors as stakeholders. Definition of stakeholders: "People or organizations that are affected by or that can affect an organization's performance."

So for the record, let's say it again: Competitors are definitely stakeholders. One academic paper gave six good reasons why this is so--starting with the fact that competitors' interests are not in direct opposition to the interests of a particular marketing organization. In many instances, a rival's goals and situation will be so close to yours that you absolutely must take its actions into consideration. Not to copy that rival but to anticipate and defend against competitive challenges--that's the real reason to look at competitors as stakeholders.

When a competitor introduces a new product that directly competes with your existing product, it's going to have some influence on what happens to your product. When a competitor changes a price (either up or down), that will likely change industry demand and therefore have an impact on your organization. When a competitor trumpets its sustainability initiatives, it could very well have some impact on how customers and other stakeholders compare what you're doing to what that rival is doing. More than ever, consumers care about the ethics and social responsibility of the brands they see. They also have changing preferences that competitors may detect or influence, adding to pressure on you and your industry.

A great example is Amazon vs. Walmart. Each watches the other closely, you can be sure. Walmart is playing catchup in e-commerce but doing a very credible job, even as Amazon encroaches on traditional retailing. Don't forget that this rivalry is having an impact on the rest of the retail industry, as well. The giants make moves, and even other giants must be ready to defend or deflect or initiate something new and different to influence consumer behavior.

As you scan the marketing environment, be sure that rivals are on your stakeholder list. NOT because you want to coordinate price changes--collusion is illegal in most countries--but because your strategy is necessarily influenced by the strategy and tactics of competitors. Be ready.