One of the biggest challenges that startups are faced with today is how they will compete with larger, already established tech giants such as Amazon, Google, and Microsoft in an ever-changing tech world. These are industry titans with huge budgets, as well as massive brands and a slew of market leverage on their side. But startups can be driven by other forces, like nimbleness, creativity, and a reckless abandon that makes them worthy opponents. Using her smarts, she could do the same with a small startup and succeed in an industry dominated by tech giants. Checkout these 6 tactics that will help startups take on these industry leaders.
- Tech giants may have broad-focused offerings, but startups can succeed by specializing in solving a particular niche or problem. Focusing on a specific customer pain point or market gap, startups can deliver highly targeted solutions that smaller companies likely can’t afford. Specialization in the product/service enables deep expertise, and thus personalized experiences are delivered by startups, which also build a loyal customer base. One solution would be for a startup to take on search but to approach it by tackling a particular vertical of the space (i.e., academic search or sustainable product search) instead of trying to directly compete with Google at general search. Small and specialized startups can become the king in their place without slow growth.
- Being Agile and Fast Moving One of the biggest benefits a startup has over tech giants is an ability to be agile. Startups are highly agile because they can pivot quickly given market trends, customer needs, and tech advancements. Moving fast and iterating quickly, which is often how startups operate, means that larger companies can be bogged down in bureaucracy and slow decision-making, as nothing can move forward without multiple layers of sign-off. That agility can allow startups to get new innovations into the market faster than a large corporate, particularly when it comes to new trends such as AI, blockchain, or green tech. Startups can keep one step ahead of their lumbering Goliath rivals through constant iteration and improvement.
- Isn’t the Same with Customer-centric Innovation When it comes to customer-centric innovation, big tech companies make decisions based on user data and mass-market solutions to a diverse range of consumers. By deeply knowing their market, startups that perform customer-centric innovation gain a competitive advantage. By listening to customers, placing users at the heart of their solution development, and responding positively to feedback, firms can generate trust in their products/brands. Startups can connect in ways that larger, more remote corporations often miss out on by getting personal and flexible. For smaller companies in particular, where they rely on the support of their community, customer satisfaction and strong word-of-mouth can be incredibly important growth drivers.
- Leveraging Partnerships and Ecosystems Startups don’t have to fight against the tech giants alone. Partnerships — with other startups, companies, or even public institutions — might provide resources, knowledge, and reach. Startups can magnify their forces by spending time partnering with companies that complement one another or are part of an established ecosystem. For example, a healthcare technology startup could align with an established medical institution, which may help lend the startup credibility and access to real-world data. By working with platforms like AWS Marketplace or joining Google Cloud’s partner program, startups can access those larger ecosystems but maintain the specificity of their unique selling point.
- Creating a Solid Brand Identity Many tech giants simply live off of the name they’ve made for themselves over years, if not decades. Meanwhile, startups have the advantage of being able to forge new, strong brand identities that appeal to today’s shopper. A startup can rise above the corporate image of a tech giant by focusing on transparency, authenticity, and social responsibility. When cascaded to brand storytelling, a mission-driven mentality can forge a narrative that emotionally resonates with consumers. Depending on a startup’s core values (sustainability, diversity, ethical AI), they can draw a demographic of increasingly conscious consumers.
- Disruptive Innovations Startups make it big when they are able to introduce disruptive innovations that challenge the existing conventions. Corporates/tech giants may be more interested in incremental improvements to existing products, but startups can offer something completely new that totally changes the game. Remember how businesses like Airbnb or Uber disrupted traditional models in their industries. Whether they identify inefficiencies in current markets or create new opportunities altogether, startups have a chance to upend the status quo and turn heads from customers and investors. Bold ideas and a risk acceptance to change could put startups miles ahead of others in the industry race.