Guerilla Versus Gorilla - How Small Companies Can Win Big

In the world of business, success isn’t always about size; it’s about strategy. While large companies often referred to as "gorillas" dominate their industries with vast resources and influence, smaller companies, or "guerillas," can still thrive by using smart, agile tactics. This article explores how small businesses can compete against much larger competitors by adopting guerilla marketing strategies and other innovative approaches.

Understanding the Guerilla Mindset

We make our living as guerillas not the kind you might see in a movie, but rather as freedom fighters in the business world. In this context, "guerilla" refers to a small company, like EMJ (now a division of SYNNEX), which competes against large "gorillas" in the marketplace. EMJ, a Canadian-based distributor with $165 million in annual revenue, competes with companies almost 100 times its size. Despite this, we’ve achieved consistent profitability for 80 consecutive quarters, proving that size isn’t everything.

If you’re in a business where your competitors are much larger, you might benefit from adopting guerilla tactics. Running a guerrilla organization requires a different approach compared to a gorilla organization. As guerillas, we avoid direct confrontation with larger competitors, instead focusing on speed, flexibility, and finding underserved markets. On the other hand, gorillas often engage in head-on battles, such as price wars or prolonged investment, which can drain their resources over time.

Companies that fail often do so because they mistakenly believe they can compete as gorillas. It’s crucial for small businesses to recognize their strengths and adopt a guerilla mindset. For instance, whenever we hire someone from a gorilla-sized company, we ensure they are trained in our guerilla tactics and understand our business model.

Top 8 Guerilla Tactics for Small Businesses

1. Act Fast

1. One of the biggest advantages of being a guerilla is speed. In the fast-paced world of business, particularly in the tech industry, being first to market can be a huge advantage. Larger companies, or gorillas, tend to move more slowly due to their size and complexity. By acting quickly, you can seize opportunities before your larger competitors even notice them.

1. Welcome Smaller Opportunities

1. Gorillas often overlook smaller opportunities that don’t seem worth their time. However, these can be goldmines for guerillas. For example, at EMJ, a product line generating a million dollars in revenue is significant enough to capture our attention. By focusing on smaller opportunities that gorillas ignore, you can find profitable niches where you can excel without facing much competition.

1. Get Focused

1. Specialization is key for guerillas. By narrowing your focus to a few key products or services, you can become an expert in your field. This deep knowledge allows you to better serve your customers and differentiate yourself from gorillas, who often spread themselves too thin. In your business, consider whether you could benefit from focusing more on a specific area.

1. Be More Flexible

1. Flexibility is another advantage guerillas have over gorillas. Large companies often have rigid policies that can slow them down or prevent them from adapting to changes in the market. As a smaller company, you can be more agile, responding quickly to customer needs and taking advantage of opportunities that your larger competitors can’t.

1. Be Smarter

1. As a guerilla, you need to be smart about the business decisions you make. This means carefully analyzing every opportunity and ensuring it aligns with your strategy. For instance, we don’t add new manufacturers to our line card just to increase our size. Instead, we focus on what makes good business sense for us. By being selective and strategic, you can outmaneuver larger competitors who may be less discerning.

1. Lower Your Overhead

1. Minimizing expenses is crucial for the success of small businesses. Larger companies often spend more on offices, furnishings, and other overhead costs that can eat into their profits. At EMJ, we’ve found ways to keep our overhead low, such as buying quality used furniture and operating in a lower-cost location. By minimizing expenses, you can improve your profitability and compete more effectively with gorillas.

1. Foster Staff Loyalty

1. One of the biggest advantages of being a guerilla is the ability to attract and retain talented employees. Smaller companies often offer a more flexible, rewarding work environment where employees feel valued and can see the direct impact of their work on the company’s success. By fostering a positive company culture, you can build a loyal, motivated team that’s committed to helping your business succeed.

1. Just BE a Gorilla

1. In certain niches, even a small company can act like a gorilla. By dominating a specific market area, you can position yourself as the leader, setting the rules for the competition. This might involve underpricing or over-servicing your competitors to establish your dominance. Once you’ve established yourself in a niche, it becomes difficult for others to unseat you.

The Power of Guerilla Marketing

One of the most powerful tools in a guerilla’s arsenal is guerilla marketing. Unlike traditional marketing methods that require large budgets, guerilla marketing focuses on creativity, surprise, and engagement to make a big impact with minimal resources. By using unconventional methods, you can capture the attention of your target audience and differentiate your brand from the competition.

For example, guerilla marketing might involve creating a viral social media campaign, organizing a flash mob, or using street art to promote your business. The key is to think outside the box and find ways to connect with your audience in a memorable and impactful way.

Conclusion

In conclusion, while large companies may have the advantage of size and resources, smaller companies can still compete and win by adopting guerilla tactics. By being fast, focused, flexible, and smart, you can outmaneuver your larger competitors and find success in even the most competitive markets. Remember, it’s not always about being the biggest player; sometimes, it’s about being the smartest and most strategic one. Whether through guerilla marketing, specialized positioning, or smart business strategies, small businesses have the power to carve out their own space and thrive.