How to compete with a larger company
There are several reasons why larger competitors make tough competitors and how you can use them strategically to build more profitable business. It can be difficult to compete with larger companies. To many, they seem to have all the advantages and no disadvantages. This week, we will examine advantages and disadvantages of the larger competitor, and how to use them to build a profitable business
Depth of skills
Larger companies have the ability to support very specific skills that smaller companies cannot afford
- Smaller companies can’t match their depth of experience and thus face a big challenge in terms of competing with larger companies’ depth of skills and know-how
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Closer to the Customer
Routinely talking with customers is nearly universal in smaller companies, while their larger competitors may have layers of management between the customer and key decision makers.
Moving faster
Chasing changes in the market makes sense if your company is more nimble
- This may mean focusing on innovation in products, service, or distribution
- A smaller company may have a greater ability to move in and out of markets as they change
Best Ways to Compete with a Larger Company
Smaller companies tend to succeed when they pursue the following strategies
Real Customer Intimacy
The smaller company, closer to the customer, can truly understand the customer better than larger competitors
- Look for ways to capitalize on the strengths of being smaller while avoiding the strengths that your larger competitors have
- Sign up for a 5-session Simplified Strategic Planning Seminar
Specialty strategy
Low volume can be very profitable if it comes at a higher price
Segment focus
Having an entire business built around a subset of the market may limit your size, but it also is much more likely to lead to strong market share, even when there is a large competitor who wants that business.
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