10 Tips for Competing with Global Giants
Small businesses often find themselves treading on the toes of larger and more established competitors. The usual result of such encounters is a swift retreat and strategic rethink on the part of the small business owners, to avoid becoming embroiled in price wars they cannot hope to win or a tug of war over clients who are sure to be more impressed by a global giant than they are by a comparative dwarf. However, if you are not averse to a little risk taking and you can think on your feet, there is no reason why you cannot take on the big boys at their own game and even beat them on the odd occasion. Take a look at my 10 top tips below.
- Focus on a niche. Rather than trying to offer a wide range of products and services, pick just one or two that your firm are really good at and focus on them. You will then stand a more realistic chance of doing something better than your competitors can do.
- Utilise AV conferencing software. You might not be able to afford to fly your best sales team to the other side of the world for a 10-minute meeting with a potential client but you can arrange a relaxing chat using webcams and freely available audio-visual chat software.
- Provide a highly personalised service to all your clients. The one thing that larger organisations sometimes find hard to do is provide their smaller clients with the level of service that they feel they deserve.
- Maintain an impressive physical presence. Whilst you may not be able to afford to lease several floors of the best commercial space in town, there is no reason why you cannot rent a small suite in an imposing building, where you can entertain visiting executives. You can find Victoria serviced offices at attractive prices and inexpensive executive suites in many other fashionable parts of town, so wherever you would like to be based, there should be no problem acquiring suitable premises.
- Use search engine ads more effectively. By targeting specific geographical locations with your PPC campaigns, you could save a lot of money and get better click through rates than your larger competitors are able to.
- Plan for the future today. As you expand, you can do so in the most efficient way possible and subsequently be in a position to make use of economies of scale that some large firms cannot, simply because they grew in a haphazard manner.
- Make quick decisions. The committee-style decision making that large corporations engage in is probably their biggest disadvantage when market conditions change. You can react faster and steal a march on your larger competitors when it matters most.
- Go your own way. Whilst it makes good sense to observe your nearest competitors, do not simply copy whatever they are doing or you will never beat them.
- Reinvest your profits. Companies with shares on global stock exchanges have to satisfy investors with big dividends whereas you can afford to reinvest all of your profits in your business.
- Online sales. If you have a product range that lends itself to this medium, you must grasp the opportunity with both hands.
Whilst it is true that global giants have many advantages over small businesses, such as large marketing budgets, access to advice from highly experienced consultants and a positive cash flow that can help them to sail through rough waters when necessary, there are ways in which it is possible to turn small size to your advantage, if you are resourceful.
Author: MWB Business Exchange is a provider of Victoria serviced offices and meeting rooms in London. Aside from those, they also offer IT and Technology assistance and Virtual Services.