Eric Schmidt on Why Business Isn’t a Zero-Sum Game

Many people think that business is a zero-sum game—if one company wins, another must lose. But former Google CEO Eric Schmidt has a different perspective, one rooted in collaboration and growing the overall market.

Eric Schmidt, former Google CEO

Photo: Flickr/Collision Conf

Congratulating Competitors

Schmidt recalls a time when Yahoo was young, and Terry Semel was at the helm. Despite being tough competitors, Schmidt and Semel had a unique tradition: whenever one of their companies secured a deal, they’d call each other to offer congratulations.

At first glance, this seems counterintuitive—why congratulate your competition? The answer lies in a shared understanding. Both Schmidt and Semel recognized they weren’t just competing for short-term wins, but were also growing the broader market for network computing and platforms.

Growing the Market Helps Everyone

Schmidt argues that when you build a larger market, it benefits everyone in the ecosystem. By working to get more people to understand and adopt network computing, both Yahoo and Google would ultimately profit.

This mindset extends beyond the immediate financial gains—there’s a philanthropic angle to it. By making the world more connected and educated about technology, they were building a better future, not just for their companies, but for everyone.

A Win-Win Strategy

Schmidt’s point is that growing the market is good for business, good for people, and good for shareholders. By focusing on long-term market expansion, both Google and Yahoo were able to thrive, rather than getting bogged down in the short-term mindset of zero-sum competition.

This strategy reflects a broader mission of stimulating growth in the tech world, one that leads to mutual success rather than seeing competitors as enemies.

Listen to Eric Schmidt:

Source: Startup Grind "ERIC SCHMIDT | GOOGLE | STARTUP GRIND EUROPE"