Even the simplest form of story can include inestimable facts. Alice in Wonderland is just a kid's story wherein its one character called Red Queen speaks, "It takes all the running you can do, to keep in the same place". Interpreted to suit today's cutthroat market environment, every business, in order to sustain its share of the market, needs to run faster and faster just to stay in the same place. Businesses need to keep changing in a never-ending race, only to sustain their current level of fitness.

The Red Queen effect is a metaphor used to indicate every business should constantly keep upgrading itself, not essentially to grow further, but to sustain its market position. This ecological metaphor is primarily based on the concept that learning not only makes organizations stronger in competition, but also triggers learning among the rivals.

A competitive advantage helps the business to build a strong client base, and get ahead of its competitors, which translates into increased sales, and more revenue generation. Despite all marketing promotions, many businesses face impediments. Competitiveness of any business varies out of the experience it has gained out of the recent competition. Companies need to do appropriate market research, analyze the current situation, and come up with strategies to outmaneuver its competitors. All this is done, so that the brand can retain its brand image among the customers, and survive. Many a times, these strategies may prove futile simply because the competitor also engages the same business practices. Despite all its efforts the company may not grow.

How are some organizations more competitive than the others?

Some businesses are remarkable and successful while many others do not. How do they manage to survive the market, and also stand ahead of their competitors? The explanation to this subject is what distinguishes the winners and losers of a business. Each new competitor that a business encounters presents not only a new challenge to overcome, but also a new lesson regarding what is successful, and what is not. When a business attempts to overcome its challenge, it will attempt to experiment with new strategies. If it proves successful in resolving the issue, then it becomes a stronger competitor for its business rivals. Solutions of one business become issues for its rivals, for which they would be forced to find solutions. Consequently, their solutions become a problem for the business, and it has to find solutions. The cycle starts again, and as long as an organization is able to face this challenge, it remains competitive.

The 'Red Queen race' of the apparel industry:


Fashion always imply 'showing off'. Apparel fashion is a red queen race, a perpetual treadmill for creating an appealing impression; better than the previous one. At the backdrop of culture, and personal values, an apparel retailer has to constantly struggle to stand out of the box. He needs to stand out among his competitors, vying for attention.


There is no such thing as winning in a red queen game. Throughout the game, the retailer has to run standing out as better; than the rest. To leapfrog competitors, retailers need to plan and implement tasks that will enhance business productivity. Failure to prioritize business development will disintegrate the business. Big brands need to develop reasonable and effective strategies to upgrade their brand. Establishing a genuine market appeal for their brand of clothing is especially important to survive in this increasingly sophisticated and competitive apparel market.


Strategies to outwit the red queen effect:



Distinguished Branding:


Distinguishing one's own business from that of its competitor's is a key way to overcome the red queen effect. Though the competitor may also apply the same strategy, initiating a new product or innovative advertisements can attract business and increase sales. As the competition for apparels gets heated up, mere window display alone is not sufficient for a brand to build its image in the customer's mind. Tactics such as captivating commercials and celebrity endorsements form a part of brand promotion. This creates awareness about the brand, thereby enhancing it.


Implementing innovative ideas:


Brands need to develop fresh and innovative concepts that are foreign to its competitors. This would not only provide a competitive edge for the brand to grow, but will also surpass its competitors. For this, the business needs capital, technical know-how, and a willingness to take risks. An appropriate brand extension strategy can provide integrated brand architecture, thereby gaining the customer acceptance and ultimately success for the business. The positive image and strength of the parent brand can be leveraged to acquire acceptance for the new brand. Nike runs diverse product categories of athletic shoes watches and apparel. The brand extension strategy of Nike fits the perceptions and image of the parent brand into the consumer's mind.

 

Positioning, Re-positioning, and De-positioning:


Businesses need to adopt the three fold strategy of market positioning, re-positioning, and de-positioning. Market positioning implies in creating a positive brand image in the minds of the target consumers. Re-positioning changes the product identity among the target consumers. De-positioning changes the brand image of the rival's products identity so as to enhance the image of their own products in the minds of the consumers.


A successful brand always offers competitive difference over its rivals. Constant thinking and consideration of improving business model can outperform competition and enable the business in staying ahead.


References:


1)     "The Red Queen Among Organizations: How Competitiveness Evolves ", William P. Barnett.

2)     " Run of the Red Queen ", Dan Breznitz and Michael Murphree