Note: Image created by Casey Sherstobitoff at Critical Mass
Who would have thought that supermarkets would be competing with banks for financial services, or a computer company would surpass music distributors in sales, or an online video chat organization would encroach on telecommunication companies' turf; and, now we see a computer company, Apple, competing with a search engine organization, Google!
There's the iPhone vs. the Android, iTunes vs. the Android Marketplace and, now, Apple TV vs. Google TV!
Who would have thought these two seemingly different organizations would be producing products and services that place them in the same categories!
However, if you look at the way these two organizations approach each of these similar offerings, you can see they remain focused on delivering their brand promise, further emphasizing their purpose!
For instance, you can see that Google's services are focused on making it easier for people to access and use information with their emphasis on open source Android software. And with Apple, you see their desire to maintain their brand experience (one of the key elements that has led to Apple's 1000% + increase in share price since Steve Jobs return in the 90's) with the app store, where apps have to be approved by Apple before launching.
As we begin to see the blurring & fusing together of marketplaces, due to new entrants, which begin to redefine & change the rules of the game for a particular category, along with the convergence of technology bringing together previously disparate products/services into one (i.e. computing and telecommunications via smartphones), we see the growing importance of defining the brand position beyond your existing products/services & category competitors.
Therefore, it is becoming crucial for brands to take on a position based on their brand purpose (an altruistic, long term direction for the organization) enabling them to take on a leadership role and competitive advantage around their values and/or experience.
This is essential as the brand is a source of value for the organization (i.e. if a person likes/appreciates a brand they don't question its price, which equals higher margins leading to increased revenues). And to stimulate perceived value for a brand, it must position itself in a unique fashion to capture the minds & emotions of its consumers, yet, not limit itself as the markets morph & merge over time.
The brand's purpose must allow for flexibility so it can create new products/services in new, existing or changing marketplaces without jeopardizing what they stand for & what they're trying to contribute to society through their brand purpose!
So, even though Apple & Google may be in new territory, competing with each other, by leveraging their brand purposes in new ways, they are not jeopardizing their positioning by being bogged down with defensive thought on how to beat the other in the short-term.
I feel there is a great quote by Mark Wahlberg's character, in the movie The Italian Job, which exemplifies this:
"That's why you're always second - you think defensively - there's no room for imagination"
So rather than thinking defensively, sacrificing market leadership, Apple & Google are embracing their imagination and finding new & exciting ways to deliver on their brand purposes, which will gain them new customers who share their values for the cool aesthetics or open source development, etc.
So, know that your market, and therefore competitors, is always changing. And rather than defining the brand against these short-term measures, focus the brand on its purpose & how it can continue to deliver on it, considering the inevitable changes, to maintain its positioning & value in the eyes of the consumer.