Better, Simpler Strategy

9

Strategies for Underdogs

Network effects benefit larger companies and their customers. Whoever gets to scale first will have a substantial advantage. Building a network-effects business is a mad rush. But what about the companies that are left behind? What about small firms? Are there effective strategies for companies that have a limited number of customers? Yes! There are many examples of smaller companies that compete successfully with (and sometimes even displace) larger organizations that benefit from network effects. Some of the smaller firms succeed by creating customer delight that does not reflect scale. Others find success by giving preference to one of the groups on the platform. Serving a small set of customers can also lead to ...