Beat BIG Competitors Jan 2 2014

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Insights on behavior of BIG companies and how small and midsize companies can compete with them.

Every company (or division of a company) goes up against a LARGE competitor. How do you compete against a better known brand with deeper pockets and better resources that you do? If you are a midmarket or Small and Medium Businesses (SMB) your challenges are even bigger.

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Beat BIG Competitors Jan 2 2014

  1. 1. Beat Big Competitors! © 2014 Business Thinking Institute 1
  2. 2. DO YOU HAVE ANY OF THESE CHALLENGES? • • • • Is your biggest competitor a BIG company? Is your competitor a better known brand? Does your BIG competitor have more ‘budget’ to beat you? Does your BIG competitor have more resources than you do? © 2014 Business Thinking Institute 2
  3. 3. MARKETS YOU ADDRESS © 2014 Business Thinking Institute 3
  4. 4. BigCos prefer large segments & big price tags Find niche markets big guys won’t bother with © 2014 Business Thinking Institute 4
  5. 5. Only 1000 companies - out of 6,000,000 businesses in America - are in the Fortune 1000. Sell to small & midsize companies that many BigCos. won’t bother with © 2014 Business Thinking Institute 5
  6. 6. Big Companies tend to ‘cherry pick’ big and high margin customers Be a ‘pilot fish’ – serve smaller customers (profitable with your lower costs) © 2014 Business Thinking Institute 6
  7. 7. Your niche is one of many businesses for BigCo Your niche is your business – focus, focus, focus © 2014 Business Thinking Institute 7
  8. 8. Big Companies prefer mass markets (large quantities) – good at scale & productivity Specialize - niche products, small batches © 2014 Business Thinking Institute 8
  9. 9. MARKETING © 2014 Business Thinking Institute 9
  10. 10. Big Companies look BIG(duh!) Look big – technology, partnerships © 2014 Business Thinking Institute 10
  11. 11. Big companies(brands) build broad market appeal - across country/world Build your brand only in your focus markets © 2014 Business Thinking Institute 11
  12. 12. BigCos. very active in social media Be active where your customers are – many may not be on social media © 2014 Business Thinking Institute 12
  13. 13. Big Companies spend a lot on marketing Courtesy: melissagalt.com Leverage their spend – extend their message, ride their ‘spending’ coat tails © 2014 Business Thinking Institute 13
  14. 14. Big businesses tell ‘generalized’ stories Tell your personal story, share your perspective, be available (phone, chat, email in-person) and be consistent © 2014 Business Thinking Institute 14
  15. 15. “When it comes to using the internet, your discomfort with it is irrelevant. If a competitor is leveraging the internet with tremendous effectiveness, you have to respond – go online!” © 2014 Business Thinking Institute www.expandOnline.biz 15
  16. 16. BigCos. have informative websites So can you…..get some great templates and build a great website – not very expensive © 2014 Business Thinking Institute 16
  17. 17. BigCos. target prospects well - have hotshot MBAs, market research($$$) Hire freelancers, hire consultants, find market research on an SMB budget ($) © 2014 Business Thinking Institute 17
  18. 18. PEOPLE © 2014 Business Thinking Institute 18
  19. 19. Big companies attract the ‘best’ talent and pay better •Hire ‘best’ talent that wants SMB atmosphere – right for you •Hire seniors and part-timers locally (most big companies won’t) •Start a ‘Best SMB to work for in YOURTOWN’ to draw attention © 2014 Business Thinking Institute 19
  20. 20. Big companies have tremendous talent, and lots of them Hire good temporary or part-time talent – stayat-home moms, SCORE execs, consultants, freelancers (www.odesk.com, www. Fiverr.com) © 2014 Business Thinking Institute 20
  21. 21. Big companies have many leaders to fight many battles Develop good leaders who can ‘battle the big’ for you (www.nextCEO.com) © 2014 Business Thinking Institute 21
  22. 22. CUSTOMERS © 2014 Business Thinking Institute 22
  23. 23. Big companies have lesser customer intimacy, esp. with smaller customers Focus on customer intimacy (take good care of your few customers) (see Best Practices of the German SMBs – Mittelstand) © 2014 Business Thinking Institute 23
  24. 24. COMPETITION © 2014 Business Thinking Institute 24
  25. 25. Big Companies not agile; change is expensive Be agile and adapt © 2014 Business Thinking Institute 25
  26. 26. Big Companies are ‘risk-averse’ to protect brand Make waves- be daring © 2014 Business Thinking Institute 26
  27. 27. BigCos. have BIG overheads and operating costs Stay ‘small’, spend ‘small’ & stay ‘hungry’(motivated) © 2014 Business Thinking Institute 27
  28. 28. Compete ONLINE (if you don’t already)! “When it comes to using the internet, your discomfort with it is irrelevant. If a competitor is leveraging the internet with tremendous effectiveness, you have to respond – go online!” - Check out www.expandOnline.biz © 2014 Business Thinking Institute 28
  29. 29. SALES © 2014 Business Thinking Institute 29
  30. 30. Big companies can take a loss on one product for a long time while small competitor bleeds to death. Compete on service & value with bigCo., not price © 2014 Business Thinking Institute 30
  31. 31. Big companies offer broad range of products/ services Partner with other SMBs (or with a large company) to offer broad products/services © 2014 Business Thinking Institute 31
  32. 32. Big Companies usually sell complex & expensive products that solve many problems Sell one simple & inexpensive product for a specific need (happy customers!) © 2014 Business Thinking Institute 32
  33. 33. BigCos. use resellers/VARs to sell to SMB customers •Sell Directly to differentiate yourself •Partner with the competitor’s competitor (another big company) to reach more markets © 2014 Business Thinking Institute 33
  34. 34. Conquer ONLINE! Take your business EVERYWHERE! www. © 2014 Business Thinking Institute .biz 34
  35. 35. Big Retailers have sophisticated eCommerce platforms You can leverage ‘readymade’ platforms with sophisticated features – Amazon Webstore, Magento templates, Shopify, Volusion – add apps. © 2014 Business Thinking Institute 35
  36. 36. INNOVATION © 2014 Business Thinking Institute 36
  37. 37. Big companies innovate on a schedule Customer Intimacy + Incremental Innovation = Frequent releases © 2014 Business Thinking Institute 37
  38. 38. Big companies decide in committees and operate on schedules zzzzzzz……. Take the plunge while the ‘dragon’ sleeps © 2014 Business Thinking Institute 38
  39. 39. List of Links for the SMB/Midmarket Companies Resources Lists Consultants Lists • Content (articles, presentations, videos) on ‘Competing with Big Companies’ • Market Research Resources • Leadership Development • Best Practices of German Mittelstand • Expanding Business Online • Competing with Big Companies Consultants • E-Commerce Consultants • Marketing Consultants • Partnership Consultants • Pricing Consultants • List of all consultants • List of Capital Providers © 2014 Business Thinking Institute 39
  40. 40. CONTACT US Ram V. Iyer President Princeton, New Jersey +1 (609)275-6300 info@businessthinking.com Ram V. Iyer is the Founder & President of the Business Thinking Institute (www.businessthinking.com), a Princeton, NJ-based organization that focuses on helping midsize companies, SMBs and those that serve them – identifying important challenges and sharing solutions, tools, providers and events to help businesses overcome their challenges. Ram has traveled to over 35 countries and worked at client sites in 16 countries. He has experience in manufacturing, operations, sales, strategy, marketing and entrepreneurship. He has worked at startups, small, medium and large multinational companies. He is a graduate of the Massachusetts Institute of Technology Sloan School of Management. You can reach him at info@businessthinking.com. © 2014 Business Thinking Institute 40
  41. 41. Competing with Large Companies You can download the presentation at www.beatBIG.biz © 2014 Business Thinking Institute 41

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