Richard Branson blasts BA but are sour grapes good for business?

The British Airways versus Virgin battle has been raging for years. In fact, pretty much as soon as Richard Branson set up his company in 1984, the two airlines became instant enemies. Their rivalry is well-documented, particularly the infamous BA 'dirty tricks' campaign which led to a court case and the UK's national carrier being forced to cough up millions.

Well, this week, the public slanging match returned.

As Sir Richard quipped that BA is "not worth much anymore" and urged the government not to bail the business out should its current financial troubles get any worse, BA's shares tumbled. All good for the nation's favourite entrepreneur but should the UK's budding Bransons take this as an indication that criticising competitors is good for business? In my opinion, no.

If you decide to do a Branson, you'll be playing a dangerous game. The Virgin boss has got plenty of cash behind him should the law get involved; something most small business owners don't enjoy.

By mentioning your competitors, you risk planting a seed in the minds of your customers that wasn't already there about going elsewhere with their business. In addition, I'm sure you'll want to avoid egg on your face should you criticise a rival for lacking a particularly product or service only for them to launch one that's bigger and better than yours!

Specsavers is one business which found to its cost the negative affect of criticising competitors.

When young entrepreneur Jamie Murray Wells arrived on the scene in 2004, he caused a stir in the world of optometry. Setting up online business Glasses Direct with low overheads, he was able to undercut his high street competitors by as much as 50%.

But rather than concentrating on its own customers, Specsavers got greedy and complained to the authorities that Glasses Direct's products were unsafe. A legal battled ensured which gave Murray Wells' business massive publicity. With clever marketing - including sending a flock of sheep into a branch of Specsavers with placards saying 'Don't get fleeced' - Glasses Direct is now a significant player in the industry and a major threat to Specsavers; so much so that despite the currently economic conditions, Murray Wells recently secured a new £10m investment.

So what can entrepreneurs learn?

Rather than slagging off your rivals, focus on your own customers. Yes, people like to pay as little as possible but customer service and a professional attitude is just as, if not more, important. Spend time getting that
right and it won't make any difference what your competitors get up to.