Big is good. When you’re big, you can throw your weight around. And maybe more important, you get noticed. In business that’s half the battle. How nice would it be if your company was the one that popped into people’s minds?
Unfortunately, you’re not the big dog on the block. Neither am I. We share a common struggle. Our competitors have more products, more locations, more awareness, more marketing, more salespersons, more money, and more press attention. How are we supposed to compete against that?
To be sure, it’s not by squaring up right in their wheelhouse. No, our only chance is to be crafty. Smart. Strategic.
What did David do when he went up against Goliath? He used his brains instead of his brawn. He hatched a plan that gave him a fighting chance. He stood his distance and used a special, albeit nontraditional, means of combat – a slingshot.
No doubt Goliath expected David to conform to the accepted and manly battle stance – a toe-to-toe brawl, the same way every other unimaginative competitor had ensured defeat before the battle had even begun.
So there Goliath stood – self-absorbed with his own greatness and completely unprepared for the unique attack plan that resulted in his demise – and the rise of a new leader.
Are you up against Goliath? Sure you are. Like David, the only way you can win is to hatch a novel plan. One that sidesteps the fight altogether and allows you, despite your meager means, to penetrate the enemy territory. Develop an innovative plan that wins the battle before it has even begun.
Where do you look to devise such a plan? A good place might be the work of Michael Porter, the undisputed Yoda of strategic theory. He’s the author of the globally recognized and studied book Competitive Advantage: Creating and Sustaining Superior Performance. Porter says, “Successfully attacking a leader always requires some kind of strategic insight.” This starts with a deep understanding of industry, customers, vendors, competitors and products.
Porter studied scores of successful “attacks” that took place in the 1980s:
- Kumatsu’s successful attack against Caterpillar (heavy construction equipment)
- Ricoh’s successful attack on Xerox (copiers)
- Timex’s successful attack on dominant Swiss watchmakers such as Bulova
- Procter and Gamble’s (Charmin) successful attack on Scott Paper (toilet paper)
- Nike’s attack on Adidas (sports shoes)
- Gallo’s attacks on dominant winemakers
In each case, the challenger succeeded in toppling the entrenched big dog – and become the leader in its target niche.
Porter says “the challenger … must find a different strategy in order to neutralize the leader’s natural advantages…” That is, you can’t fight the competitor on its terms.
Remember Muhammad Ali? As he had feared, his success led him to a fight against the unbeatable Joe Frazier. How would he defeat Frazier? Joe was a wreckin’ machine. Sure, Ali could do what everyone else did: At the sound of the bell, queue up for a beating. Ali wouldn’t even lose much respect. After all, who could beat Smokin’ Joe?
But Ali wasn’t going to give up that easily. He had a dream. But the humbling truth was that Joe was just too strong. Ali would face certain defeat unless he could devise a plan to outwit and outflank.
Sure, Frazier was unbeatable at his toe-to-toe brawl game. But did he have weaknesses? Yes. Did Ali have strengths? Yes. Ali possessed superior speed and had a “reach” advantage. Generally Ali was also considered more intelligent. This is what Michael Porter calls strategic insight. Ali used this insight to hatch his own plan. He controlled his ego, used his quickness to stay outside Frazier’s reach, jabbed with greater reach and speed, and when cornered by Frazier, he used “rope-a-dope,” a completely new boxing innovation devised by Ali for this fight.
The result? Ali executed his plan perfectly and became “Champion of the World.”
Adopt a similar strategy and you can, too.
Five Steps of a Champion
Step 1: Are you willing to accept defeat?
Step 2: Are you willing to face the humbling truth?
Step 3: Can you honestly assess your strengths and weaknesses, and those of your competitor(s)?
Step 4: Can you devise a winning strategy in light of the above?
Step 5: Can you execute your plan?
This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.
This publication is intended to provide general information on the subject matters covered. It is sold and distributed with the understanding that neither the publisher nor any distributor or advertiser is engaged in providing legal, tax, insurance, investment or other professional advice. The advice of a qualified professional should be sought before any reader applies a concept presented herein to his or her particular situation or business.
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