Taking on a giant company when your business is just a fraction of its size seems like a tall order. Yet history tells us that this has happened many times and will continue to occur whenever larger companies make poor strategic moves and smaller organisations use their agility to fill the gap.
Not every story is going to be as dramatic as Taobao’s take-down of eBay in China. This took place in 2007 when eBay was the world’s largest consumer marketplace. Taobao was very much the underdog at this point, but the company had some fresh ideas about how they could build trust with customers who were at that time reluctant to shop online. The timeline was remarkably fast – Jack Ma (CEO of Alibaba) launched Taobao in 2003 at a time when eBay China dominated the market with over 70% share. By 2006, Taobao had overtaken eBay China and, two years later, held 80% of the market.
Taobao beat eBay in China by offering a more localised, user-friendly platform tailored to the specific consumers it was targeting. While it’s true that it leveraged the fact it was backed by Alibaba (and their market knowledge), it used a less rigid approach and created a smoother experience more in-line with Chinese expectations.
This is good news for those in the UAE, where global conglomerates have significant market share. Small businesses might feel at times that they’re entering the ring with a heavyweight boxer, but the truth is that small companies can absolutely take on big ones. In fact, in many cases, they’re uniquely positioned to outmanoeuvre them. So, let’s look at how this might be done.
Learning from success stories
The stories of small going up against big aren’t limited to Taobao. The fintech bank Monzo, which has no physical branches, set itself apart by providing services the high street banks were not – from instant spending notifications to simple budget tracking tools. Monzo made an intuitive mobile app that was way ahead of anything offered by the high street banks, which were struggling to innovate in this area.
Male beauty products are a far cry from fintech, but Dollar Shave Club attacked industry leader Gillette and made major inroads. Their strategy was to create a more personalised approach, offering a subscription service where razors are delivered to your door. This innovation undercut Gillette’s dominance and resulted in a $1bn acquisition.
By contrast, Patagonia – which is not a small company but is certainly not the size of some of its competitors – was able to go up against its much larger rivals by simply holding on to its original ethos. The pro-environment ethics the company has always displayed urged customers to buy less and repair more. Through this approach, they built a brand based on authenticity that resonated with consumers.
Strategies to compete with the giants
Having looked at some of the different ways small companies take on their larger competitors, let’s focus on the core strategies that can be applied, regardless of sector.
- Keep agile: Speed is one of the biggest advantages smaller businesses have. Decisions are not slowed by layers of bureaucracy or endless meetings. Whether they’re launching a new product or responding to customer feedback, small companies can often do in a day what a large corporation manages in a few months. If you can stay lean and responsive, you can find opportunities before the giants spot them.
- Think ‘niche’: Many entrepreneurs try to out-compete big brands through scale, which is almost always a fruitless exercise. A better strategy is to define a narrow niche that the big players tend to ignore. While bigger brands can afford to cast a wide net, smaller businesses can benefit by becoming trusted experts in their space. Narrowing the focus of your products, services and messages creates stronger links and helps develop deeper customer loyalty.
- Customer-centricity: Small businesses can be more personal – whether that’s greeting customers by name, remembering their preferences, or just solving their problems quickly. Responsive service is key. Ensuring you give prompt responses can build relationships. If you’re still a very small team, using a virtual receptionist can be very useful. It’s here that small businesses can create a real connection – something that large corporations using call centres may find difficult. Many customers are willing to pay extra for this more personalised service.
- Tech first: Digital solutions have changed everything and small businesses can operate at a level of sophistication once reserved for multinationals. Whether it’s employing AI to improve customer service or no-code platforms to create new services, the right tech stack can enable even a one-person consultancy to expand like a much larger firm. A strong online presence, automation and data-driven decisions can help small teams reach the world. Social media enables you to engage with customers and prospects and earn trust.
- Tell your story: Corporate brands can seem impersonal and anonymous. A small business has an opportunity here. Create a personal brand and engage with your followers on LinkedIn and other socials. Customers want to buy from people they can identify with and believe in. So, make sure your values are visible to customers, prospective employees and business partners. Today’s customers look beyond your products – they want to know what you stand for. When you’re transparent about your values, you build trust and long-term loyalty.
- People: You won’t attract the best talent by simply offering a high salary. You’ll need to build a workplace people want to belong to. Culture and flexibility matter more than ever, particularly to the younger generations. A positive work environment and a clear path for advancement give small businesses a real advantage in hiring. Just as customers check reviews before buying a product, potential employees check out how you treat your team. Collaborate with recruiters to avoid missteps and look for people who will bring skill and creativity. With the right approach, you can attract employees who might otherwise go to a corporate giant. Your team is already your greatest resource, so invest in it.
Getting in the ring with heavyweights
Competing with big business can be daunting, there’s no doubt about it. But while small companies can’t always match the scale or budget of their larger competitors, they can play to their strengths – particularly their attentiveness to customers and their agility. By being nimble, focused, tech-savvy and deeply human, they can make space for themselves, win customer loyalty and build a truly distinctive brand.
