Only the fit will win

JAKARTA (JP): During Soeharto's New Order regime, competition was a nonword.

Businessmen called fellow entrepreneurs business mitra (partners) rather than competitors, which they actually were.

But perhaps they were not completely wrong because competition was then -- by design or otherwise -- stifled.

Businesses which grew big on privileges from the power holders, understandably felt reluctant to have other entrepreneurs become their competitors.

Calling them "partners" was decidedly safer.

One of the myriad ways with which the regime killed competition was by granting undeserved licenses to business people in its orbit.

It was an accepted fact that only well-connected people could venture into important business fields.

Those who had toiled for years might suddenly have to accept the newcomers as "partners" -- as a refusal to comply would often mean a quick death to their businesses.

On the other hand, businessmen who entered the field through unfair means usually had no wish for fair competition, rather they strove to expand through yet more privilege.

They did not bother to create or seek a market because it was already there, captive and unable to refuse their products that were forced upon it.

They could even name their price. Such corrupt practices have yet to be eliminated, but at least today, entrepreneurs have started to experience what healthy competition is like.

The public is now able to discern which are the true entrepreneurs, which are the hangers-on.

Those who at one time existed because of their closeness to the palace, now have to stand back and open the way for real entrepreneurs, who intend to survive with their hard work and professionalism.

Competition now exists in almost all sectors -- thanks to the removal of some of the red tape and newfound courage of entrepreneurs to reject procedures they deem unnecessary for the survival of their businesses.

Credit also goes to the Internet that has shortened the distance between the producers and their customers.

With the lifting of some of the entry barriers, entrepreneurs can now venture into any field they want, as long as they are ready to face the "cruel" market.

The list of entrepreneurs who failed the competition is a long one, including those in the print media business.

When publishing permits were no longer a requirement in the business, a rapid proliferation of publication took place, but many new tabloids and magazines did not live long.

The survivors were those who have been around a long time or have been doing business in the proper manner.

The same thing could be said for the broadcast media. Out of the five holders of new licenses, only MetroTV has begun operation. The other four are still said to be preparing for launching, though there has not been any official announcement as to when they will go on air.

Meanwhile, time is running out -- they will lose their licenses to other companies if they miss the deadline for launching.

There are of course companies that have succeeded in the new competition era.

Cellular operator PT Excelcomindo Pratama, with its ProXL product, has shot forward and left its competitors who have been around longer and have bigger coverage areas.

The same exciting competition could also be felt in the airline industry.

Only the fit will win.

Newcomers, such as Awair, would find it difficult to survive even with proximity to the power holders. Power is no longer an efficient option to ensure the survival of a company in the competitive market.

Who determines how well a company will perform in a competitive market?

The people inside the company do, absolutely. Two companies might be using identical software and hardware, and operate in the same field, but give different output because different people are operating them.

This explains why one radio station can attract a greater audience and win more advertisements than the other stations despite using practically the same equipment.

The same could be said of cellular operators who could be applying the same technology but still gave different results.

The success of high-achieving companies is partly due to their sound business strategies. Mostly, however, it depends on the quality of their human resource.

-- Tjipto Ramuni