Attended a webinar today and most of the participants were of the view that post lock down it will be bigger companies that will be doing good and smaller ones can struggle. Here are my two cents on the same.
Most of the innovations have been brought about by people who have thought ahead of time. It’s not big or small but the actual thought that has pushed people to come out with disruptive ideas and change the paradigm. Some examples of sports, wherein some of lesser know teams of that time could change the nature of game:
In 1996 Cricket world cup no one gave a chance, they were in fact beaten very badly by Australia few months before the start of world cup. Everyone knows the rest, Srilanka won the world cup !. Question is how? was it a fluke or some strategy?
The answer can be found in many sports case studies, Srilanka changed the complexion of game. Two of their opening batsman – Sanath Jayasuriya and Romesh Kaluwitharana came out blazing and used the fielding restrictions to their advantage. They scored so many runs that the other bigger teams could not match them and lost out. When we look back it seems like a simple strategy but no one could think of this back then. Smaller teams or organizations are more lean and nimble footed and they take the risk of innovating and experimentation , whereas bigger companies are bound by their inherent processes and bureaucracy that can pull them back. Leaders at times don’t take risk just to defend their positions. They are happy with status quo situation.
Another example that has been with me since many years is , the rise of “Paper Boat” . This company has dared to make it’s mark in a space that was owned by MNC’s and huge giants. In fact it’s perfect example of ” David Vs Goliath” .
Again the question is , how could a new kid on the block make it so big? Was it luck or some other strategy? Paper Boat did a thorough research and came out with a strategy that bigger Giants could not even think off or imagine.
1. Emotional connect – brought out products that connected people with their child hood memories , “aam Ras” , Nimboo Pani etc..
2. Digital Platform – they connected with their customers and created lots of engagement programs via digital platform, this helped them convert customers at fraction of cost and also target the segment .
3. Market Penetration & Differential Pricing – Paper boat created a robust distribution structure and ensured their margins. One path breaking strategy was their differential MRP system. On airports it was higher and in normal grocery stores it was lesser , thus taking care of distribution margins.
There are 100s of such case studies and examples that show that it’s not about size but it’s more about thinking “Out of Box” and breaking the bureaucratic mold that hold us back. Managements and senior leadership should also step out of their safe heavens and allow teams to come up and generate ideas rather than just pushing instructions down their throat .
Smaller and nimble footed organizations or Dealers have a god given opportunity to bounce back and create their niche in this situation. They might not get another chance in near future.
