Here’s What It Takes to Become an Industry Leader — and Stay There

Holding the top position in your industry is enviable. Market dominance often unsettles competitors, but reaching the summit means there is only one way to go: down. With competitors eager to challenge your lead, what actions can you take to maintain your position or achieve lasting success?

Some companies spend years or decades at the top; some only a short while. Most tumble at some point. The question is, what are you doing to prepare your leadership and company to reach the pinnacle of your industry?

As a competitive amateur tennis player, I enjoy watching the U.S. Open. Many fans, myself included, were surprised when Novak Djokovic, ranked fifth in the world, lost in the first round to a lesser-known, 49th-ranked player. At 39, and after 428 weeks at the top of the men’s rankings, his peak years may be behind him. However, championship-caliber athletes, like Tom Brady, often defy expectations.

Like Djokovic, former champions such as Roger Federer, Rafael Nadal, Pete Sampras, Andre Agassi, John McEnroe and Jimmy Connors have demonstrated excellence through years of practice, mental toughness and dedication. Meanwhile, younger talents like Carlos Alcaraz, Jannik Sinner and Ben Shelton are eager to take their place, while established champions continue to compete at the highest level.

What about the companies that rose to the top spot, stayed awhile and then toppled due to competitive or economic challenges? Below are several examples and the reasons behind their decline.

Top companies that fell

IBM

In the growing post-war years after World War II, International Business Machines (IBM) established worldwide dominance in the early days of mainframe computing. IBM built a disciplined, solid sales force that offered customers a comprehensive solution of hardware, software and service. 

Within 40 years, IBM lost ground to emerging competitors introducing Unix open systems and desktop computers. By failing to adapt to lower-cost and emerging technologies, IBM allowed companies like Intel and Microsoft to capture significant market share and profits.

By the early 1990s, IBM was bleeding cash. Going against the grain, the company brought in top leadership from outside its ranks. Through a series of strategic decisions, IBM recaptured market share in some areas. However, these moves came too late, especially in the competitive arena of personal computing.

Blockbuster

Remember the era of movie rentals? You could hardly drive a few blocks in any urban or suburban area without passing a Blockbuster video store. In 1985, the emerging company opened its first video rental location in Dallas, Texas. David Cook, a computer programmer, conceived the idea of video rentals, creating software to track inventory and customer preferences. 

On a personal note, I feel like I contributed a little bit to Blockbuster’s bottom line by paying overdue rental penalties a few times. A founder of Waste Management purchased a controlling interest in the company for $18 million in the late 1980s, believing Blockbuster, like other industry giants, held excellent growth potential.

Despite early success, the rise of the internet in the 1990s and 2000s created new markets. Netflix began renting DVDs by mail in 1997, and Blockbuster introduced a similar service in 2004, which ended up being too late to compete effectively. Notably, Blockbuster declined an opportunity to acquire Netflix for $50 million. Ultimately, as we all know, Blockbuster ceased operations in 2014.

Motorola

Motorola was once a dominant force in communications, with its hardware widely used in public service sectors such as police and fire departments. The company excelled in manufacturing and led the two-way radio market for decades.

Motorola did not anticipate that future growth would depend on both hardware and software systems essential for digital and smart devices emerging in the 1970s and 1980s. In the mid-1980s, Motorola’s large cellular phones gained popularity, selling for around $3,000 and attracting many executives and business owners.

Soon after, competitors entered the cellular phone market with smaller, more affordable devices. Motorola’s leadership remained focused on traditional radio technology and did not capitalize on new advancements. After years of financial challenges, Motorola returned to profitability in 2019 and now offers smartphone technology it once overlooked.

Establish a leading mindset

No single formula guarantees business success. Essential elements include current or future demand, hard work, assembling the right team, timing and sometimes luck. These are only the basics; many other factors come into play.

Some entrepreneurs plan from the outset to lead their industry, but often, people like Ray Kroc of McDonald’s simply aim to provide a quality product and support their families. Becoming the world’s leading fast food chain was likely not Kroc’s initial goal in 1954 when he began franchising with the McDonald brothers.

What set Kroc and similar entrepreneurs apart was their vision for growth. Expansion enabled McDonald’s to reach more customers, while refining operations and assembly-line processes reduced costs. Consider whether you and your team are prepared to embrace the following principles:

• Aim high and expect great results
• Embrace challenges; you’ll fail more than you succeed
• Become resilient
• Prioritize growth; you can’t have everything at once, though
• Expect to achieve the top spot

The transcription industry, like many others, is highly competitive. Some companies offer low prices by outsourcing to inexperienced overseas workers and compromising quality. While these rates may attract cost-conscious customers, poor results often lead to higher overall expenses when expectations are not met.

Delivering quality work from the outset may require more time and investment. Success is rarely immediate. Achieving long-term goals despite setbacks demands patience and a resilient mindset.

Preparing your team

Developing a plan for success is essential for any entrepreneur. Instilling this mindset within your team, however, can be challenging.

Today’s marketplace offers a wide range of talent. Previously, recruiting top candidates often meant targeting Ivy League MBAs. While degrees remain valuable, employees with specialized training or technical skills can also contribute significantly to your organization.

Ensure your team understands and embraces the drive to achieve excellence. Instilling these objectives is often easier during the startup phase, when teams work closely with leadership.

As your organization grows beyond 25 employees, maintaining alignment with key objectives becomes more challenging. However, employees look to their leaders, so consistently reinforcing goals and objectives is essential during periods of growth. 

Execute to stay on top

It’s been a long road, and you’ve finally arrived. After significant effort and overcoming challenges, your company now leads the industry, while former leaders have lost their position by missing market trends. However, maintaining this status still requires effective execution, though the approach may differ from earlier stages.

Hardly a day passes without the minority political party proclaiming what they would accomplish if only they were in charge. Yet when the gavel passes, the party in charge must now execute their agenda. The same holds true in business.

Reaching the top position may not be solely due to your efforts. As seen with IBM, Blockbuster, and Motorola, failure to anticipate industry trends contributed to their decline, which in turn created opportunities for others to rise.

The key lesson is that reaching the top may not always result from individual brilliance. Now that you are in this position, focus on execution and avoid the mistakes of your predecessors. Consider the following:

• What did we accomplish to get here?
• What mistakes can we avoid to keep the wolves at bay?
• What concepts can we implement to improve and grow market share and earnings?

If you have already achieved industry leadership, congratulations. If you are still striving for that goal, consider the strategies discussed above. Best wishes for your continued success.

Holding the top position in your industry is enviable. Market dominance often unsettles competitors, but reaching the summit means there is only one way to go: down. With competitors eager to challenge your lead, what actions can you take to maintain your position or achieve lasting success?

Some companies spend years or decades at the top; some only a short while. Most tumble at some point. The question is, what are you doing to prepare your leadership and company to reach the pinnacle of your industry?

As a competitive amateur tennis player, I enjoy watching the U.S. Open. Many fans, myself included, were surprised when Novak Djokovic, ranked fifth in the world, lost in the first round to a lesser-known, 49th-ranked player. At 39, and after 428 weeks at the top of the men’s rankings, his peak years may be behind him. However, championship-caliber athletes, like Tom Brady, often defy expectations.