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Lesson #4: “Competition brings out the best in products and the worst in men.”

David Sarnoff Articles
Lesson #4: “Competition brings out the best in products and the worst in men.”

The introduction of television might have come following the conclusion of one of the most deadly wars in human history, but with it came an entirely new war - the war to dominate the burgeoning communications industry.

As hard-working as Sarnoff was, he also developed a reputation for being a shrewd businessman who was ruthless when he needed to be. From patents to people, Sarnoff did not accept anything less than what he wanted. Sarnoff might have lost the occasional battle, but he was not about to ever lose a war.

"Nobody can be successful if he doesn't love his work," said Sarnoff. "Success, in a generally accepted sense of the term, means the opportunity to experience and to realize the maximum forces that are within us."

Sarnoff took out all the stops because he was passionate about what he was doing. Indeed, this "General," as he liked to be called, worked until his death in 1971 because he knew no other life, no other passion.

Because of his dedication to his business, Sarnoff refused to accept criticism or opposition from those within his own ranks. Going against the boss would land you in Sarnoff's home in the wee hours, where you would be immediately let go on the spot. For those who did not work for the man himself, Sarnoff could always find a way to get what he wanted out of you.

He was one of the first businessmen to understand the controlling value of patents, and never hesitated to use RCA's power to crush those underneath.
In 1933, a good friend of Sarnoff named Howard Armstrong, created a new scheme for radio broadcast - what is today known as FM radio. Compared to its AM predecessor, which all RCA systems used, FM broadcast with significantly less static and produced a much clearer sound. Armstrong, who worked for RCA at the time, suggested RCA switch to FM. Sarnoff, however, opposed vigorously.

As a result, Armstrong quit and started his own company. He then made the fatal mistake of suing RCA in 1948, alleging that Sarnoff was conspiring to influence the Federal Communications Commission in limiting the development of FM radio.

That Armstrong had the genius to start his own FM station was undeniable. But that he had the audacity to go up against Sarnoff could not be tolerated. Sarnoff called in his entire brigade of lawyers and kept Armstrong tied up in court for six years. By the end of the trial, Armstrong was destitute. Once again, Sarnoff had won the war.

Sarnoff arrived from Russia as a poor immigrant who did not speak a word of English. It is a testament to his character that he was able to rise through the corporate ranks of America, becoming one of the most successful - and most feared - businessmen of his time. Where his business called for ruthlessness, Sarnoff brought all the arms he had, and was not afraid to use them.





Lesson 4 Competition brings out the best in products and the worst in men

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Kim Castle
With nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website


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David Sarnoff Video - Six part oral history interview with television executive Thomas W. Sarnoff. He talks about growing up with his dad, RCA executive David Sarnoff, and how TV was a constant topic of conversation. In 1949, he became a floor manager at ABC in Los Angeles. He eventually became an assistant director for the series Mysteries of Chinatown. He was hired at NBC in 1952, as an Assistant to the Director of Finance and Operations. In 1957, he was promoted to Vice President, Production and Business Affairs. He discusses the contracts and negotiations he was involved with including Bob Hope, Colonel Parker (Elvis Presely's manager), and for shows such as "Gumby", "Matinee Theater", and "Bonanza".
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