It's a common practice to strive for feature parity with a competitor. If they launch a new feature, you rush to release something similar because, in theory, this lets you maintain your position in the marketplace.
Playing catch-up may benefit the competitor more than the organization trying to catch-up. It reinforces the notion that whatever the competitor released is desirable, and conveys a suggestion that they are leading the market, or that they are more innovative.
When you play the game this way, you are allowing the competitor to define the terrain of competition, putting you at a disadvantage.
- Focus competitive research on customers not competitors
- Loss aversion creates tension between the need to innovate and the need to protect the status quo in large organizations - Striving to maintain competitive parity is a form of loss aversion.