Post #1: Creating Positive-Sum Scenarios in the Arts

Successfully analyzing a competitor takes vigilance and is never-ending. Strategists must not only analyze their competitors as they currently are, but how they expect them to be in the future based on their past actions. When evaluating a competitor, it is important to consider rivalry responses, whether it be through “price discounting, new product introductions, advertising campaigns, and service improvements (Porter, 9).”  Of all these actions, price discounting can be particularly destructive as it “transfers profits directly from an industry to its customers (Porter, 9).” This sort of price discounting of competitors seems an easy solution for many businesses, but should be strongly considered before this action is taken. Often competition creates a zero-sum, as “one firm’s gain is often another’s loss (Porter, 10).” Porter claims this can be avoided through careful segmentation of a market and differentiation of products/services offered.

Better yet, is if a competitive relationship can be turned into a positive-sum, increasing the profitability of an industry as a whole. I think this strategy can be applied to many arts organizations, where often organizations are competing for the same audience’s time and attention. Through collaboration, institutions can bring their resources together, growing their total audiences, and working together to build the total audience of art-goers in a community. Through collaborative efforts, they can help the arts industry as a whole by building a stronger customer base that is interested in their products. This can be seen locally with the organization Attack Theater and its many partners. Because they do not have a physical location for their performance, they collaborate around the city with various other institutions. They have participated in events at the CMOA, The Pittsburgh Cultural Trust, New Hazlett Theater, to name a few. In doing this, they are building the artistic community as a whole in Pittsburgh, building their audience from the ones that exist in other arts spaces and vice versa.

This type of strategy can be used throughout the non-profit sector as a whole as it can result in increased funding. Many foundations are now interested in giving to organizations that use a collective impact model. This requires collaboration between competing organizations to provide greater change. When done well, this can lead to a positive-sum effect where the entire community is better off, and each organization can better meet its mission. I think there are many ways I can apply this in the future, as more arts organizations are realizing the power of collaboration over rivalry tactics.