Only the fit will win

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