One week ago, Wladimir Klitschko fought a heavy weight title fight sanctioned by three boxing federations against Eddie Chambers.
It ended with a knock out 5 seconds from the final bell in round twelve. The only reason why it took so long was the ability of Chambers to take hard hits without falling down.
Klitschko easily won all rounds, he was in command from the first until the last second of the bout. It even started to become boring after a while, the only thing to keep me from turning off the TV was that I wondered when the knock out would come.
Will I watch the next Klitschko fight? Hm, not sure. It actually does not matter if Wladimir or his brother Vitali will enter the ring – it will end with a Klitschko win. And as they decided to never fight each other there is not too much of a thrill to expect.
So what can they do? Fight against better opponents? Well, actually Chambers was the number one challenger. They already won against all of the good fighters active today that were willing to step into the ring against a Klitschko. It seems like heavy weight boxing is boring because there is no competition for the best.
Think about it next time you complain about your competitor annoying you: Without a good competitor it’s less fun and less motivating, as you don’t have to fight.
And in many cases, markets with low competition also have a small size. Let me explain this point:
Just imagine that a company has the opportunity to invest in a new technology. They know that for producing their potential new product they need a precursor that only one company can produce: You. Sounds like a good position for you? Well, from their perspective you are simply a supplier without any competition.
What will they do? Go for it anyway? Maybe yes, but they risk that when you will unable to deliver or even suddenly exit the market they may end up with the debt from the investment but no product to sell. And even if it won’t go that far: They may think that their share of the profits will be small, even though they take all the risk, as you can ask any price (and share of the profit), knowing that you got them in your hands.
That does not mean that you would do so, but the effect of being opposed to a market without competition is that they may end up with not investing and therefore not buying from your market at all.
Many markets need competition to survive. Take it as a challenge and try not to lose to many rounds.