David vs. Goliath 2.0. Sounds like a summer movie box office sequel. However, for small businesses and small to medium-sized enterprises (SMEs) David vs. Goliath 2.0 symbolizes the day-to-day struggle of competing against larger companies that target the same customers. Nothing will change this challenge. Therefore, small business owners must game plan their own approach to compete, need to develop their own strategies in order to compete, remain profitable, and expand.
Goliath, while not a business, was big and tall. Today’s corporations are big and tall in their own right. For example, large corporations have name recognition and money. Therefore, small businesses, like David did in his battle against Goliath, must adapt and outmaneuver the opponent at every turn. That’s the path small businesses must follow in today’s competitive business environment.
Outperform the Competition
Instead of taking on larger competitors one-on-one, small businesses and SMEs should consider the following strategies in David vs. Goliath 2.0:
Concentrate on a specific market: Small business owners can concentrate on a specific area or target audience. By addressing a particular market, small businesses can set themselves apart from large businesses, which usually cater to a bigger audience.
Provide top notch customer service: No matter if a buyer is an individual or business, every purchaser loves personalized customer service. Small businesses gain a competitive edge and customer allegiance from superior customer service. Many times, large companies find it challenging to offer any type of personalized customer service either before, during, or after a sale. Therefore, in this area, small businesses possess a distinct advantage over larger companies.
Utilize technology: With technology small businesses can gain a wider audience. Social media and digital marketing provide the tools to reach your target audience. At the same time, small businesses can restructure operations and the sales process. Through reorganization, small businesses can develop both an extraordinary and pleasant customer experience.
Be nimble and flexible: Nimble and flexible small businesses quickly adjust to marketplace changes as well as customer needs. Small businesses own the advantage of implementing quicker decisions. Unlike larger companies, small businesses also can change direction if and when needed.
Lower overhead expenses: An efficient small business, which simplifies operations, usually generates lower overhead expenses. Following this approach provides an upper hand for a small business. For example, a small business can cut prices its products or services in order to meet or beat the competition’s prices.
Strengthen strategic relationships: Forming strategic relationships and coalitions are significant small business growth factors. This strategy follows the “strength in numbers” theory. Through these partnerships, small businesses are able to influence larger audiences and gain more exposure than if the small business tried to do everything by itself.
Propose exclusive products or services: Many small businesses have the capability to provide unique products or services which larger companies aren’t able to offer. This approach enables a small business to stand out from the competition and entice new customers. Every small business should highlight and promote that one product or service which differentiates it from the competition.
Create a powerful brand: Every small business should focus on creating a powerful brand. The brand needs to have its own specific identity as it relates to customer service, products, or services. Big businesses use this tactic all the time. There is no reason why small businesses can’t follow the same approach. Therefore, a strong brand builds customer loyalty which separates the small business from its competitors…even those large company competitors.
Target quality: High level quality is one technique small businesses have the ability to distinguish themselves from larger companies. That’s because big businesses may emphasize quantity over quality. With a consistent approach to high-quality products or services, small businesses can build a loyal customer base. This small business tactic provides customers with the same product or service with every purchase.
Conclusion
It is not impossible for small businesses and SMEs to compete and succeed against larger competitors. Small business priorities need to focus on strengths along with exploring ways to “be different” from larger competitors. That way every small business becomes a winner in its David vs. Goliath 2.0 battle.
