Eating the Big Fish

Beating the Big Brands

Given the rapid development of e-business, the power of a brand is even more important now than ever. Changes in the world of marketing add to the challenge. As markets mature, they change and companies must change with them.

In one major shift, product categories that have generated excess capacity become filled with companies that are competing for the same pool of customers. For example, Ford Motor Company has estimated that 70 million cars are produced annually - but the natural demand exists for only 50 million.

Another change is that market leaders must now adopt an aggressive stance. Larger companies not only compete with smaller ones in their own categories, but reach out to compete in markets outside their normal playing fields. For example, when McDonalds diversified its menu to include yogurt and chicken items, it quit competing just against other fast food hamburger chains. With these additions, it is now competing against chicken outlets and even ice cream parlors.

If big companies are acting like this, how should small companies act? Second-rank firms cannot succeed by behaving like smaller versions of the dominant brands...