Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more ➡
Download
Standard view
Full view
of .
Add note
Save to My Library
Sync to mobile
Look up keyword
Like this
8Activity
×
0 of .
Results for:
No results containing your search query
P. 1
Small is Beautiful

Small is Beautiful

Ratings: (0)|Views: 3,353|Likes:
Published by Hewlett-Packard

More info:

Categories:Business/Law
Published by: Hewlett-Packard on Sep 01, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, DOCX, TXT or read online from Scribd
See More
See less

12/14/2012

pdf

text

original

 
 
SMALL ISBEAUTIFUL
 
How to compete with bigger competors
 
Small, ambitious companies need to do some business ju
-
jitsu to outcompete larger rivals. Their agility, speed andinventiveness can give them the edge
.
 
Intel, the Intel Logo, Intel Inside, Intel Core, and Core Inside are trademarks of Intel Corporation inthe U.S. and/or other countries.
 
 
SMALL IS BEAUTIFUL
 
Page
1
 
SMALL IS BEAUTIFUL
 
HOW TO COMPETE WITH BIGGER COMPETITORS
 
It’s easy to forget today, but market leaders such as HP, Microso and Intel® were start
-
ups too. HP sll hasits original garage.They didn’t (quite) go from garage to gargantuan overnight, so how did they outpace their compeon – and how can small businesses do today emulate their success?
 
Technology has provided small businesses with new tools to slay bigger rivals. But where small rms usedto use the internet to disguise their size, now they revel in it, using size itself as a compeve advantage.It’s what eatbigsh consultancy boss Adam Morgan idened in “Eang the Big Fish” as thinking like a “Challenger brand”. Small businesses can be more agile when it comes to acng on opportunies and –because necessity’s the mother of invenon –more innovave than their larger rivals.
 
So, here are some ideas to think about if you’re compeng against Goliaths:
 
1.
 
Take out costs
. It’s tricky for smallbusinesses to compete on price, butthis is less about lowering costs thanexamining your operang model totake costs out.Start by idenfying your real valueproposion – why do customers needyou? Are there costs you can take outwithout the customer knowing – or caring? Ryanair is the classic example, emulang US budgetcarrier Southwest’s model and relentlessly removing ‘frills’ throughout its supply chain. And whileboss Michael O’Leary is oen lampooned for it, Fresh Minds research suggests airline passengers are less driven by brand than price when it comes to carriers.2.
 
Get your customers to fund your growth
. Instead of seeking bank or VC funding, grow organically,starng with a key customer. Gravitate to recurring, high margin revenue so you’re not lurchingfrom feast to famine or having to cut your prices to get by. Costcos cash
-
and
-
carry model hasourished this way, its growth funded by commercial and individual customers who were willing tobuy in bulk to get low prices. Naked Winess customers are its “angels”, funding independent wine
-
growers and pre
-
ordering their stock. The earlier you buy, the cheaper the oering.
 
1 THE HP GARAGE IS CALIFORNIA HISTORIC LANDMARK NO. 976
 
BIRTHPLACE OF SILICON VALLEY. (1939 PHOTO)
 
 
SMALL IS BEAUTIFUL
 
Page
2
 
3.
 
Naked is also a good example of another outsmarng strategy:
cut out the middle man
. By dealingdirectly with independent growers, Naked oers wine lovers indie labels at keen prices. It alsocreates a buzz and community around its business – customers are real stakeholders and rate winesand exchange views as if they were across the table from one another.4.
 
Create a new business model
. Award
-
winning toy manufacturer and markeng business Wow!Stu  has a model that eecvely makes the best of all worlds: it is funded by invoice discounng,manufactures in China, crowdsources invenons via the web and uses UK talent to build retail andbranding environments to sell products globally. You’ll need a decent web infrastructure for thistype of set
-
up but cloud compung makes bricks
-
and
-
clicks hybrids possible.Be prepared to change tack if your rst (second, third) idea falls on stony ground. Says LondonBusiness School Entrepreneurship chair professor John Mullins:“Too oen small businesses fall in love with a product or idea and forget they are in business to solve a problem.”5.
 
Capitalise on the crowd
. A limited budget need not hamper your ability to build ‘fans’ and winreferrals. At razor and shaving products business King of Shaves, Will King acvely uses Twier and his blog to assert his underdog status, while promong products.
 
Beyond this, sites such as Groupon discount provider show how easy it is to grow fast and monesewebsites with ‘social commerce’ – group buying whereby a deal is oered if a certain number of people sign up to it. There are tools such as SyncFu that make s
-
commerce accessible to anybusiness.
 
6.
 
Compete on service
. “Show your size is an advantage by turning around quotes fast or beingexible. Take advantage of the perceived arrogance of big businesses, and listen to customers – youmay get a sense of frustraon with a large competor,” says Dominic Monkhouse, managingdirector of the UK arm of hosng company PEER1.Read customer forums and online comments on rivals’ service. Where can you do beer?
 
“Clients really appreciate the fact that the person proposing the outcomes is the person who’lldeliver it,” says David Pippe, founder of DWP Public Relaons. To keep payroll down, he maintainsan associate network, so he can scale up quickly without compromising quality.
 
7.
 
Value and values combined
can also give small companies the edge – think Innocent Drinks, orElla’s Kitchen – and even in commodised sectors, the human touch can be a deciding factor.Eclipse internet acvely uses its service quality to compete in a crowded market. Knowing customerfrustraon with call
-
centres, it keeps its operaons local and follows up on help
-
desk enquiries. It’sduring those conversaons that it can nd out more about what its exisng customers want –creang condence in their judgement that gives them a lever to oer more choices.  “People respond to brand personality and knowledgeable service. They appreciate speaking directly

Activity (8)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
alilunca liked this
peterrainman liked this
Sheikh Zeeshan liked this
Mohsin Ayub liked this
creativemarco liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->