The Illusion of Competition, How Brands Win by Competing With Themselves

Why people love competition and how brands create their own rivals - Cadbury, BBK electronics, Unilever examples
Competition isn’t always real. Sometimes, it’s carefully crafted by the same brand – so no matter who wins, they win.

Competition grabs our attention. From sports to shopping, humans are wired to compare, debate, and pick a winner. But what if I told you that some of the fiercest rivalries you see aren’t real?

Many top brands don’t just compete with others they create competition for themselves. This isn’t luck; it’s strategy. Let’s break it down and explore how startups can use this “self-competition” strategy to their advantage.

The Psychology Behind Rivalries

Our brains love choice—but too much choice creates anxiety. To simplify decisions, we naturally focus on two strong players in any category: Hero vs Rival.

This is why people debate endlessly:

  • Nike vs Adidas
  • iOS vs Android
  • Coca-Cola vs Pepsi
  • Swiggy vs Zomato

What most don’t realize is that some of these rivalries are designed by the same company.

Case Studies of Self-Competition Stategy

Tech & Smartphones

  • BBK Electronics owns Oppo, Vivo, OnePlus, Realme, iQOO, and Nothing. Each brand targets a slightly different audience, yet all compete in the same smartphone space. The result? BBK dominates mid-range to premium phones globally.
  • Meta Platforms: Instagram, Facebook, WhatsApp, and Messenger all compete for user attention. Fans may debate which platform is better, but Meta wins in every scenario.

Takeaway for startups: Segment your offerings. Even if you target slightly overlapping audiences, multiple products allow you to capture a larger share of the market.

FMCG & Beverages

  • Coca-Cola dominates fizzy drinks with Sprite, Fanta, and Thums Up.
  • PepsiCo does the same with Mountain Dew and 7Up.
  • Even within the chocolate space, Nestlé positions KitKat and Munch differently to capture both snack and indulgence markets.

Takeaway for startups: Offer product variations that target different customer needs. You don’t need to fight competitors head-on if you can fight yourself effectively.

These all are some examples.

How Startups Can Apply the Self-Competition Strategy Effectively

The self-competition strategy isn’t just for giant brands like Coca-Cola or BBK Electronics. Startups can adopt it to accelerate growth, capture attention, and outpace competitors—if done strategically. Here’s how:

Start with Clear Audience Segmentation

How to Apply:

  • Identify 2–3 distinct customer personas within your target market.
  • Launch multiple products or variations catering to each persona.

Why It Helps:

  • Each product appears tailored for a specific audience.
  • Increases chances of conversion as customers feel the product “fits” their needs.

Impact on Growth:

Faster traction as you appeal to multiple segments simultaneously.

Example: A food delivery startup can launch a “budget meal” app and a “premium meal” app, both feeding into the same backend operations.

Create Differentiated Offerings to Spark Conversations

How to Apply:

  • Make products slightly different but comparable (price, features, design).
  • Encourage natural debates online—reviews, polls, or social media engagement.

Why It Helps:

  • People talk about your products for free, acting as brand ambassadors.
  • Social proof grows organically through discussions and reviews.

Impact on Growth:

Viral effect can attract customers faster than traditional marketing.

Example: Two coffee blends from the same startup could ignite “which is stronger?” debates on Instagram.

Dominate Your Niche Before Others Enter

How to Apply:

  • Identify your category’s “high-demand gaps.”
  • Launch multiple products quickly to cover those gaps before competitors do.

Why It Helps:

  • Reduces market space available for competitors.
  • Customers perceive your brand as the default leader.

Impact on Growth:

Rapid market share capture.

Example: A startup selling personal care products can launch two shampoos targeting different hair concerns (dry vs oily) and gain faster recognition than a single-product competitor.

Use Internal Competition to Learn Fast

How to Apply:

  • Monitor which products perform better in real-time.
  • Adjust features, pricing, or marketing accordingly.

Why It Helps:

  • You gather market insights faster than competitors who rely on single-product launches.
  • Reduces risk as failures are contained internally without losing market share.

Impact on Growth:

Accelerates product-market fit.

Example: Two app versions competing for user engagement can reveal the most effective UI/UX in weeks instead of months.

Scale Faster Than Competitors

How to Apply:

  • Launch products in parallel, not sequentially, to occupy more mindshare.
  • Use existing operations to support multiple offerings efficiently.

Why It Helps:

  • Each product acts as a growth engine while reinforcing the others.
  • You appear omnipresent in the customer’s mind.

Impact on Growth:

Faster awareness and adoption compared to a competitor launching one product at a time.

Example: A startup launching both budget and premium e-commerce platforms can capture users at different price points faster than a single-platform competitor.

Key Benefits Summarized:

BenefitsHow it Helps
Multiple Customer SegmentsReach more audience simultaneously
Organic MarketingSparks debates and conversations
Market DominationCovers category gaps before competitors
Data-Driven iterationLearn what works faster
Customer LoyaltyCross-product engagement
Rapid ScalingLaunch multiple products in parallel

Startups using the self-competition strategy don’t just compete, they control the conversation, dominate the category, and grow faster than single-product competitors. By carefully designing multiple offerings and segmenting your audience, you can accelerate customer acquisition, boost revenue, and create a defensible position in your market.

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