Big versus Small

Question: 

How should your business respond when a big competitor moves in on your great idea?

Gary's Answer: 

First, you can’t think of an enterprise as one “great idea.” That is not what businesses are. Business are systems for addresses customer needs. To do that, you need to have hundred of good idea but you actually don’t need any great ones.

Next, this is a classic problem in strategy, going back to Sun Tzu’s The Art of War. However, the problem stated as invading a territory, in modern terms, taking away customers.

The solution is speed plus focus.

Large companies cannot move as quickly as small ones. In terms of getting idea, you can implement them must faster than a large company can.

However, you have to pick the right areas. Small companies can serve markets, called niches, that are too small for large companies. You can actually go after niches within a large company’s market: groups of customers with specialized needs that the larger company cannot address.

You cannot fight a straight-up battle, that is, pitting your resources against the larger companies resources. You will use.

So you use strategy. You go where larger companies cannot operation profitably and move quicker than they can keep up.