Two weeks ago, we attended a workshop in which the subject of law and policy, related to Competition was discussed, and to some extent, dissected.
Sponsored, jointly by the University Of the West Indies and Central Bank of The Bahamas, the objective of the workshop was, primarily, intended to bring to the business community in The Bahamas, an awareness of some changes, and perhaps challenges, which could influence and impact our way of live, in an FTAA (and, or) WTA-dominated world. Our particular interests though, was to learn what affect a law on competitiveness will have on distribution, in The Bahamas as it relates to the marketing mix.
Let me say that the workshop was also an opportunity for Bahamians to preview findings from a study made on The Bahamas by a team of researchers, headed Dr. Taimoon Stewart, of the University of The West Indies, Mona Jamaica.
Providing legal clarification and references to the subject matter and support to Dr. Stewart’s presentation was Mr. Rajan Dhanjee; Legal Officer, Competition & Consumer Protection Division, of the UNITED NATIONS CONFERENCE ON TRADE & DEVELOPMENT.
While the Full workday session (held Wednesday, 15th January, 2003), focused on the subject matter of Dr. Stewart’s study ﾖ the bases for law and policy to regulate competition in The Bahamas ﾖ as Dr Stewart spoke to some preliminaries of issues with which she have been faced in The Bahamas, the session became illuminated… Indeed, animated, by some revelations of the lack of competition which has prevailed and influenced markets and marketing conditions, here, for many years.
We have a history in this country of Monopoly-In-The-Extreme; whereby distributorship of products and services in great demand (by the individual consumer, private companies and the government) were held exclusively in the hands of a small number of (patrician families) business persons. It is from this neat little arrangement the recalcitrant attitude toward advertising was seeded. Since advertising is generally
employed to reposition market competition, there was really no need for it, in such a system in that, in most cases, an individual or a (very) small group of individuals was the only game in town.
But as veteran lawyer and instructor at the Eugene Dupuch Law school Dion Hanna, as well as lawyer Katina Mosko told the workshop; even in the, supposedly, lucrative, ethics-conscious and fraternal like legal services profession, banks seem, for a long time to channel work to a small selected group of firms (even though, in more recent times the banks have been able to justify this practice by pegging it to the need for indemnification – an extremely costly preposition).
According to Mr. Dhanjee, unfair competition practices of this kind sits on the other side of a very narrow line which divides it from ‘good ole aggressive business acumen’, which could mean that any law written and policy established on competition, in The Bahamas could cause all of us to face enormous challenges.
But our concern is how such a law (s) will impact advertising, sales and marketing, here in The Bahamas; locally and from across the Bar.
We know that the way business is conducted in this country has been undergoing change… Slowly but surely. But also that competition is one of two basic factors marketing managers must consider when planning strategy. That our understanding of the competitor’s product and his marketing strategy will enable us, the better, to plan our own, and thereby maintain or increase market share.
But are we even aware of the differences ﾖ or what one student of Competitiveness calls the epistemology ﾖ of policies which can come with legal competition from overseas and some of the challenges it will present?
Walmart is one of the names often branded about, when the question of unfair competition, resulting from an FTAA-dominated Bahamas is discussed. But any such retailer will soon become integrated with and subjected to, local market conditions and marketing culture… It is the competition, operating from a domicile outside of The Bahamas, with the exact ﾖ or similar ﾖ rights and privileges as the local business firm which could result in serious frustrations for the local marketing manager, when it comes to pricing and distribution of products and services… Law, medicine, real estate, insurance ﾖ not to mention retailers on the internet ﾖ immediately comes to mind.
In view of this, will the pending law and policy on competition for The Bahamas be a working partner of local business; taking into consideration, the mor’es and taboos of the past 100-plus years, guiding us across the bridge to the new world order… Or, will such law and policy be a pander, serving only to further frustrate the Bahamian marketing manager.
Will take into consideration the frustration and even legal problems which can haunt her, simply by (initially) misinterpreting or misperceiving when and where the rules apply; not to mention some other challenges, such as dumping and price-fixing.
Most businesspersons are expressing concerns over the possible casualties globalisation ﾖ the FTAA in particular ﾖ will create in our local markets and how expensive marketing to other countries in the region will be. Both Stewart and Bahanjee has assured us that any such fears are uncalled for “At this time”, they say.
“Comforting”, says one participant at the workshop, “but not nearly compelling enough, “I see too many signs of this country moving away from one form of colonialism to another”, by way of this FTAA thing”, she said.
According to Dr. Stewart, the proposed law on competitiveness and the policies emanating there from, will be introduced by the government as a protective measure and, ultimately, will serve only as a “watchdog instrument”.
We take the view that seem to be the consensus of most lawyers attending the Central Bank workshop, which is… ‘In all probability, the law will be a copy of one already passed in Barbados or some other country in the region, with relatively little changes, in which case it will probably go the way of a lot of many other laws, passed in this country… ‘In a spirit of community, as the saying goes. If such a scenario becomes real, the important thing for marketing managers to do is immerse themselves in the study of such elements of the marketing, as pricing and distribution. Even more importantly, to keep in mind a cardinal rule of marketing, which is, never, never attack the competition head-on, because you will never beat a leader at his own game, playing according to his rules.
At all cost, the safe thing to do is shield your business, your marketing plan from being swallowed up by any law, because as someone counseled, a long time ago; this law (will be) made for you and your protection, not you for the law. After all, as Dr. Stewart has states, emphatically: “It will serve only as a watchdog”.
Well, Mr. Dion Hanna’s response to that ﾖ “Don’t forget the most popular dog in this country is the Potcake” ﾖ may be trite but certainly is true.
What will a law on Competition be to the Bahamian marketer, Partner, Pander or Potcake?
David A. Clarke is a practicing media consultant based in Nassau.
