Bang the heads of the corporate giants
Are you a beginning entrepreneur? Is it your first month of operation?
I can hear your knees hitting. Do you wonder if you
can defend against the giants that dominate his chosen
industries The entrenched enemy tends to have vast resources, a strong
marketing machinery and, of course, a powerful brand presence.
How can you compete against that?
It’s easy: with a little corporate guerrilla skirmish. Microsoft
did. Gateway did. IBM did it. Do you think these companies started
big? Of course not. Microsoft started in Bill Gate’s backyard.
You can be a Bill Gates. That is how.
DOMINATE A NICHE
There is no point in selling soap, candy or matches to the general public.
Everyone from Jack to Jill sells this product. Unless you have economies of scale
and a huge system to keep costs down, you can’t fight the Unilevers of
this world. Let the giants sell the goods. Stick to a differentiated good
product that caters to a small segment of society. For example, you can market
Organic dog shampoo for Doberman owners. Or you can offer custom body kits for
Honda Type R fans.
Serving a small market segment that the swamp boys overlooked. you will grow up quickly
loyal customer base.
DIFFERENTIATE THE PRODUCT
Do you sell pizza? If it looks like Yellow Cab, it tastes and smells like Yellow Cab
like Yellow Cab, your customers would rather go to Yellow Cab. You will be considered as
a second rate copycat.
Rather than imitate, differentiate. Provide value-added features to a product.
that everyone considers commoditized. If the features are unique and useful enough, you will be able to
inspire repeat purchase and mass word-of-mouth marketing.
Take the example of Hammer Baking Soda. Instead of selling your product as a simple baked
soft drink, they positioned it as a super product that eliminates the coldest odors, cleans, deodorizes
and everything else a housewife might need.
Apple was not just another PC. They positioned themselves as a lifestyle.
And Tony Robbins wasn’t just a speech coach. He was an empowerment guru, charging
$2000 at the seminar.
COST LEADERSHIP
People fight tooth and nail to gain market share. That can be a problem when the competition
it boils down to price wars. Margins shrink and earnings sink below the horizon.
Compete in cost leadership! Get your raw materials and labor from third world countries.
This allows you to lower prices, but maintain margins. Plus, you give people jobs!
Entrepreneurship can give a high that will make many entrepreneurs
give up the dream and the social life just to grow the business. I know, I’ve been an insomniac
businessman for years. Maximize the longevity of your company by following the three
Rules of the corporate guerrilla skirmish. You could end up being the next Microsoft!