You are seeing this message because your web browser does not support basic web standards. Find out more about why this message is appearing and what you can do to make your experience on this site better.


Home | Sign In | Contact Us | Careers | Site Map | Help


Advertisement

The New Language of Competition: Are You Friend or Froe?

People who read this also read:

I’m just back from London, where I participated in an idea summit organized by WPP, one of the world’s leading marketing-communications groups. The highlight of the day for me was a talk by Sir Martin Sorrell, WPP’s founder and CEO, and a true game changer in the realms of marketing, media, and strategy.

Back in my days running Fast Company, I had the chance to conduct an in-depth interview with Sir Martin, and he offered truly original insights into strategy, competition, and the global economy. Last week in London he did it again.

Sir Martin painted a mesmerizing picture of the still-underestimated power of China. The country is producing 465,000 engineers per year, he noted, while the US produces 56,000 per year. China Telecom alone has 340 million subscribers—40 million more customers than there are people in the United States.

He also identified a defining challenge for big companies everywhere. On the one hand, there is vast oversupply of products. From cars to computers, dishwashers to disk drives, there are too many makes, models, and brands chasing too few customers. At the same time, there is a worsening shortage of talent—making it tougher for giant companies to find the brainpower they need to win.

But for me, the most striking insight came from Sir Martin’s discussion of the competitive dynamic between his firm—a global marketing powerhouse—and digital powerhouses such as Google. One participant wondered: Are the new Internet giants allies of or rivals to marketing giants such as WPP?

Certainly, Google is a business partner of WPP, Sir Martin replied. (In fact, WPP is Google’s biggest customer.) At the same time, he explained, Google aspires to play a bigger and bigger role in how advertising works, from print to radio to the Web. In other words, the Internet giants are both friends and foes—or “froes,” to use Sir Martin’s phrase. They are both friends and enemies—or “frenemies,” to use his other phrase.

Froes. Frenemies. Those clever little terms capture a huge transformation in competition. Think of the relationship between Apple and the music labels, or between semiconductor companies and PC makers, or between Chinese manufacturers and the Western companies they supply. The neat dividing lines of business are being erased and redrawn. Companies have to learn to be friends with and foes of other companies with whom they do business.

Who are your most valuable froes? Who are your most worrisome frenemies? Have you figured out how to cooperate with and compete against the most important players in your field?

HARVARD BUSINESS ONLINE RECOMMENDS:
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Hardcover)
Staying Ahead of Your Competition (HBR Article Collection)
Hardball Strategies, 2nd Edition (HBR Article Collection)

* * *
Sign up for the Harvard Business Publishing Weekly Hotlist, a new weekly email roundup featuring the top highlights from HarvardBusiness.org.

Comments

How different is this concept from co-opetition (melding cooperation and competition?)

- Posted by Evelyn Mung'au
September 24, 2007 8:56 AM

The New Language of Competition: Are You Friend or Froe?
Sir Martin Sorrell, WPP’s founder and CEO has forgotten one small sticky substantial fact
China has a vast population and there is clarity in producing everything in mass including the high technical CEOs of CFO or COOs. Think of a small country marred with poverty, illiteracy and graft. It is a small country and I doubt if you expect many clever and bright people coming out of the small box. The bigger the country, bigger the population, bigger the opportunities of getting more of the cream of the creamy heads. The smaller the population small the head all over from toe to the grey matter and output.

I thank you
Firozali A.Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

- Posted by Firozali A.Mulla MBA PhD
November 4, 2007 11:19 PM

Sir
The complete African continent depends on Chinese goods as we in Tanzania cannot afford the expensive designer's choice that may be so.But the fake and counterfeits that comes out from the world is so much that I know in confidence that I am buying the cheap goods from India, Fareast or China. We have been living with these goods since 1961 the independence of Tanzania.
I have no complaints.For that matter I see very little complaints on the Chinese product for many countries except US and Australia(screaming the head on toys only. That is not the Chinese Total product.) We have many other good things that come out from China
I thank you
Firozali A.Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

- Posted by Firozali A.Mulla MBA PhD
November 28, 2007 9:34 AM

Why exactly are these "original insights?" As a reader pointed out this is the same as the concept of coopetition that has been around for about a decade or so. Indeed some of the examples given related to the relationships between semi condictor and PC companies and Chinese manufacturers and Western companies have been in place for over a decade and is not a recent phenomenon.

Lets have some genuine game changing ideas please!

- Posted by Uday Gulvadi
November 28, 2007 4:54 PM

Neither the concepts nor the propsed approach have any novelty. Nonetheless, the relevance of the understanding the friends and enemies can not be understated.
Whatever happened to "Keep your friends close, and enemies closer still"?

Nilesh Patel

- Posted by nileshkumar patel
November 29, 2007 6:47 AM

Brandenburger and Nalebuff also introduced their " Value Net " model in the 90's, which was published in HBR in the July-August 1995 issue, and added great insights to this topic.
maybe we need to know more about what Sir Sorrell said to be able to appreciate its novelty.

- Posted by Gaweed El Nakeeb
November 29, 2007 6:48 AM

The need for collaboration in competition is not restricted to business.Political leaders also need to collaborate in order to, for instance, protect the environment; and engender a more equitable distribution of the wealth of the world.It is only these that will ultimately ensure global peace, security and long lasting prosperity.

- Posted by kolawole Agboola
November 29, 2007 1:20 PM

From the comments already stated previously in that this is not really a new idea but a re-purposed concept of coopetition or quadrants in the value net equation, it is interesting how truly new ideas are hard to come by. Another old saying ocmes to mind, "keep your friend close but keep your enemies closer."

- Posted by Robert Hsu
November 29, 2007 7:05 PM

The claim that the concept is a new insight calls to mind the Russian saying that "all is new that is long forgotten"

- Posted by Ndimele Leo
November 30, 2007 9:01 AM


" Friend or Froe " We must keep ourselves away from such words.
In Global market all are customers. As we all believe in harmony.

kmdesai, A Investor.

- Posted by kamlesh desai
December 3, 2007 11:07 AM

Ultimately one really begins to wonder the underlying trajectory with respect to the emerging world in the African continent.
It would be nice to see a senario where these countries have the motivating 'drive'that has continually projected the economies of the US and China in a world that can only be best imagined!

- Posted by Hillary Ndimele
January 11, 2008 1:30 PM

There is yet another language to be taught and to learn sir
I am not in the Saudi but the TV of the day is very interesting. Well almost I would say humorous. There is reason. Mr. Bush
He came to the Saudi, told the Saudi they had a problem from Iran, Better be warmed and be on guard. Buy more weapons from me. Then he goes to the other parts the Middle East. Same message to all the Arab land. Then he comes back to the Saudi and tells the King, this are my word as I do not speak Arabic.” We need oil. We need this very badly. We are facing problems as we may go in recession. Please increase the output and we will buy wall the oil. Please Iran is a threat. We are in fact attacking the Iran trade by calling of all the pistachios. We will give these to the world. But please increase oil. We need oil. Iran is attacking you. Oil please.”
Well this is slightly exaggerated but the lingo is same if you translate in the language of politicians.
Am I right? More questions then answer.
I thank you
Firozali A Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

- Posted by Firozali A Mulla MBA PhD
January 15, 2008 12:11 PM

Davos,
The state of economy, politics or gossips no one can tell. Why too much hype in the language with many hiccups.
US politics trumping economics, or vice versa?
Weak data force bank to take bold approach

Sir:
If there is policy it belongs to the US. If the DAVOS turns into quagmire of politic issue and monetary issue of the felled markets of the world, the primary cause is US. How can you state otherwise? There is no vice versa. It is US and all know of this.
I thank you
Firozali A Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

- Posted by Firozali A Mulla MBA PhD
January 23, 2008 1:13 PM

Sir
Iran sanctions by USA will not work
Now this is not a trade questions the Axis of Evil was based on the Islamic values.
It is fallacy to stop me to trade with other when the outsiders want my commodities they cannot get form the ones you outcast. Here is what I mean. Iran sells the product to the Middle East, India, Europe, many other countries and not just America. It is just like the story of Ostrich hiding the head in the sand when the storm comes. Iran does not need American dollars that are on decline. Euro now is 1.25 American dollars. The New York traders in fact have started accepting the Euro as the cash as their cry is;”When we come to Sates, we do not want to haggle in price as we are accustomed to the now strong Euro”.
Any threats have never worked in children, adults, and nation. There is always a way to come back to beat the sanctions. China was blamed for the lead sprayed toys, cheap shoes, dumplings. Has any stopped buying the Chinese goods? Indian goods? No. All look at what is they want and that is it. No politics in my way of purchase. I need my freedom with my pay and my savings. Hoe come anyone comes to guide me in this.
I not only disagree with the powerful arms to guide all to buy what they want to sell, but this is against the economical cannons. It is choice, scarcity, demands, and my pleasure. No more, no less. This is from one paper, Finally, when asked what their expectation of the value of the US dollar was in relation to other currencies, traders continue to see a decline, with over 56% of the respondents saying the dollar will fall “moderately to significantly” over the remainder of 2008. Since clearly most traders are not shorting markets consistently, it makes the drop in the number of profitable forex trades they are expecting more understandable.

I thank you
Firozali A Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

- Posted by Firozali A Mulla MBA PhD
February 17, 2008 2:15 AM

I wish to start from the topic “Are you Friend or Froe?” Personally, I am viewing this from a comprehensive point of view whereby I begin to apply this to all that I am doing ranging from my work environment, personal business strategy, customers, partners and known competitors with the mindset that your current customers and partners (without threat to your business) today are seen as Friend but in a short while could turn to Business Competitors otherwise seen as Foe. However, my lesson is to keep every contact at ARMS LENGTH and always seek continuous business growth, making differentiation of product and services a tenacious activity and top PRIORITY. Your Friends today might be a Foe tomorrow, BE PREPARED... A further illustration to this is Microsoft and Google, long and outstanding business friend turned foe. Also, I will not fail to comment on the non-standard controls of the Chinese products as compared to the products of old from Western world, I pray for the regulatory agencies in my country Nigeria to live up-to their responsibilities at controlling influx of the substandard products from the Asian markets.

- Posted by Oluwafemi Abioye
March 15, 2008 2:57 PM

Trackbacks

TrackBack URL for this entry:
http://discussionleader.hbsp.com/cgi-bin/mt/mt-tb.cgi/1671

No trackbacks have been made to this entry.

Return to Bill Taylor

Join The Discussion

* Required Fields




Verification (needed to reduce spam):

Return to Bill Taylor


Posting Guidelines

We hope the conversations that take place on HarvardBusiness.org will be energetic, constructive, free-wheeling, and provocative. To make sure we all stay on-topic, all posts will be reviewed by our editors and may be edited for clarity, length, and relevance.

We ask that you adhere to the following guidelines.

  1. No selling of products or services. Let's keep this an ad-free zone.
  2. No ad hominem attacks. These are conversations in which we debate ideas. Criticize ideas, not the people behind them.
  3. No multimedia. If you want us to know about outside sources, please point to them, Don't paste them in.
We look forward to including your voices on the site - and learning from you in the process.

The editors


Stay Connected

RSS Feeds
Email Newsletters
Twitter: @HarvardBiz
YouTube
Podcasts on iTunes
Harvard Business Mobile

About This Author

Bill TaylorWilliam C. Taylor is an agenda-setting writer, speaker, and entrepreneur. His new project, Practically Radical, chronicles the radical shifts transforming business and the practical steps that will determine who wins. His most recent book,Mavericks at Work, has been a New York Times, Wall Street Journal, and BusinessWeek bestseller. As cofounder of Fast Company, he launched a magazine that earned a passionate following around the world. He is an adjunct lecturer at Babson College and a former associate editor of Harvard Business Review.

To learn more about Practically Radical, download a preview here.