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How to Compete Against Big Tech Companies

Big tech companies are similar to large ships: they can carry tons of freight but lack the agility to maneuver. The small startups are the opposite: they adjust their direction much rapidly and move with full power.

👉 That means you don't compete with tech goliaths. You find a market where they are inefficient due to their size or lack of knowledge.

Competing with the tech giants becomes much easier when you are not competing with them directly -- differentiate your product from them! Otherwise, you have to launch a product 10X better, and that is more challenging but still possible to deliver.

Having a vision for the product is a significant advantage of small startups. For that, you need a clear plan and execution strategy for the long-term. If you have ever worked at corporates, you know that most of them deliver with high level of inefficiency caused by company politics, bureaucracy, and decision-making inflexibility. Most of their strategic questions could stay "open," not planned and not figured out yet.

Another powerful tool for acquiring and holding on to your best users is to give them specific rewards or discounts, for example, through affiliate and referral programs. Users get incredibly attached to the kind-of frequent programs they have enrolled in. People just enjoy receiving special treatment -- provide off-pricing offers!

Working on partnerships with big tech corporates is one of the best ways to turn a big tech company into a customer if your product/service is B2B. For the B2C model, it could be a great opportunity to shout out to and grow awareness around your venture.

What is most important for entrepreneurs is being passionate about the product. Building a product that you need and use first because you will be its the #1 critic and the most demanding user! That's a good indicator that other users will be willing to pay for it too. You are not the only one who has the same problem.

Don't be afraid of competing against the biggest companies in the world. They won't kill. Instead, they may help you. Or even make you rich by acquiring in the future.

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    What a coincidence, I just posted on IH today about how Google brought out a product that went head to head against ours when we were 1 year into our startup, but we managed to persevere and compete with them until they shut down their offering a few months back! https://devan.codes/blog/2020/11/4/making-google-blink-first

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      This comment was deleted 3 years ago.

  2. 1

    I think the way to do it is by focusing on small clients (they are often neglected by the big companies) and offering fast and more personal customer support (big companies usually outsource their customer support or they make it extra hard to reach a real human)

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