Last week, I saw a competitor shut down. No matter the reasons behind it, moments like these shake up an industry. They impact teams, customers, and even competitors. How a company responds in such times speaks volumes about its values, leadership, and long-term vision.
When a competitor folds, it’s easy to react with either anxiety or opportunism. But the right approach is a thoughtful, balanced one—where we lead with empathy, communicate clearly, and remain focused on our priorities. Here’s how:
1. Supporting Your Internal Team First
The first thing to address is your own team. News of a competitor shutting down can cause unease—people might wonder if it's an industry-wide trend or an isolated case. Clear, transparent communication is key. If your company is in a strong position, reassure your team. If there are challenges to navigate, acknowledge them and share the plan forward. A confident, informed team performs better and fosters trust.
2. Extending a Hand to Affected Employees Of the Competitor
For those suddenly out of work, this is a tough time. If you're hiring, it's an opportunity to step up and offer roles to talented professionals. Even if you’re not actively hiring, sharing openings within your network, making introductions, or offering guidance can go a long way. Being a responsible industry player builds goodwill that lasts beyond just one moment.
3. Showing Up for Clients Left in the Lurch
Customers of the folding company might be scrambling for alternatives. This is a moment to lead with support, not aggressive sales tactics. Can you offer guidance? Can you create a smooth transition plan if they need a new provider? By focusing on their needs first, you build trust—and trust builds long-term relationships.
4. Aligning Your Team’s Focus
While responding to the situation is important, it’s equally crucial not to get distracted. It’s easy for teams to get caught up in the industry buzz, but leadership needs to ensure that core priorities remain on track. Set clear expectations: address the immediate needs, but don’t let the entire organization lose sight of its long-term goals.
5. And Mostly Importantly, Leading with Empathy and Respect
It’s tempting to see a competitor’s shutdown as a business opportunity, but how you approach it matters. A respectful and empathetic stance—towards their employees, customers, and even their leadership—reflects your company’s integrity. Industries evolve, and today’s competitors can be tomorrow’s partners or allies in different ways.
At the end of the day, moments like these test leadership. The best response? Stay steady, be thoughtful, and show up with both strategy and heart. Because in the long run, companies that lead with empathy and focus are the ones that truly stand out