November 23, 2005

How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strengths!

Posted in David vs. Goliath, management at 10:12 am by scottmaxwell

So far, I have had six posts that point out the strategic weaknesses of the large companies and how emerging growth companies can exploit those weaknesses to win in the market. Large companies clearly have some very powerful strategic advantages as well. This post lists those advantages, both real and perceived and follow-up posts will address what the emerging growth company can do to minimize the advantages.

The Large Company Advantages…

There are many perceived advantages that well-run large companies have over the emerging growth company, including the following:

  1. Great senior managers and employees
  2. A technology platform in place with customers
  3. A Patent portfolio and ongoing new patents
  4. User comfort with the user interface “look and feel”
  5. Many customer relationships
  6. Well developed channels of distribution
  7. A huge set of great technical talent
  8. A brand name and reputation
  9. Significant financial resources
  10. Economies of Scale and Scope
  11. Ability to bundle multiple products

Attenuating the Large Company Advantages…

There are many very good approaches for emerging growth companies to minimize each of the perceived advantages of large companies. The following few posts will address each of these perceived and real advantages.

Additional note: as I post each of these topics, I will link each of the items above.

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12 Comments »

  1. […] additional note to my ealier post: this post is a subpoint to my post on “How Can David Beat Goliat?-Strategy #7: Attenuate Goliath’s strengths!” I have found that adding only one great leader to an emerging growth company significantly changes the outcome, and multiple great leaders working together is one of the largest ingredients for success for all companies. […]

  2. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  3. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  4. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  5. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  6. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  7. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  8. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  9. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  10. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  11. […] This post is part of the overall posting “How Can David Beat Goliath?- Strategy #7: Attenuate Goliath’s Strength“: […]

  12. […] Attenuate Goliath’s Strengths. The large company does have some natural advantages itself. The posts below address each of the large company advantages as well as what the emerging growth company can do to minimize the large company strengths (and in many of the cases, create an edge): […]


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