Embracing Competition Turns Your Rivals into Growth Engines

Three years into their journey, a wellness startup finally finds success with a unique smoothie formula. Then the news hits: a national brand launches a copycat product, flooding the market with flashy ads and samples. At first, the team panics. Was their chance at uniqueness over? Their marketing lead, Dana, thinks differently. 'This is our chance to be the David, not the Goliath,' she says.

They double down, rebranding as 'the upstart everyone’s talking about' and inviting customers to compare taste and commitment to local sourcing. Press jumps on the rivalry, casting the startup as the scrappy hero. Instead of losing customers, their sales jump—fans want to support the underdog, and the chain’s entry validates the startup’s once-weird idea. Retailers begin taking their calls more seriously.

Months later, the founders reflect that having a big rival forced them to clarify their own strengths and message. And when that rival’s formula flops, the startup finds even more new followers who trust their years of craft. Behavioral research says markets only exist when there are at least two recognizable players. Competition creates legitimacy, urgency, and learning—so the best organizations welcome it and use it for momentum.

Review the competitors in your landscape—not just those your size but especially the top dogs who set the tone. Frame your message so that you're defined in contrast to them, not just floating in the middle. Watch and learn from their successes and flops, using those moves to inform your strategy. And the next time a rival validates your approach—say, by launching a product similar to yours—celebrate and publicize it as proof your idea works. Embracing competition gives your team rallying power and can make even newcomers more likely to support your cause. Try it for your next project.