strategist and marketing consultant, and President of Denny Marketing, Stephen Denny, was kind enough to take the time to answer a few questions about his thought provoking and insightful book Killing Giants: 10 Strategies to Topple the Goliath in Your Industry.
Stephen Denny describes how a small player in any industry can topple the giant industry leader through a combination of brains, street smarts, and agility.
Thanks to Stephen Denny for his time, and for his thoughtful and fascinating responses to the questions. They are greatly appreciated.
What was the background to writing this book Killing Giants: 10 Strategies to Topple the Goliath in Your Industry?
Stephen Denny: An email. A former direct report sent me a note telling me she was, as she put it, “stuck between 2 giants.” I hit reply and before I knew it, I’d gone 500 words. And I was just getting started. I thought it would be rude at that point to hit “send” – think of that coming over your Blackberry – so I ended up writing the book instead.
I’ve spent a lot of time over the course of my career, both on the brand and consulting sides of the table, fighting these sorts of uphill battles. Capturing the right strategies and putting them on paper was a natural progression.
Many small business people believe that they simply can’t compete, let alone thrive, against the dominant company in their industry. You disagree with that idea. Why do you say that?
Stephen Denny: I spoke to over 70 “giant killers” and profiled 33 different companies across 13 countries – from Silicon Valley to the townships of South Africa - who told their stories in their own words of how they out-maneuvered or just killed the giants they faced. They often spoke with the confidence of retrospect, but clearly their struggles weren’t easy. The good news, though, is that they were ultimately successful. It can be done, in other words. And these “giant killers” can teach us ways to do it.
Stephen Denny (photo left)
Being a small business has many advantages that large companies lack. What are some of these advantages and how can they level or even take over the playing field?
Stephen Denny: When giants become giants, their problems change. Global distribution and consistency become more important that craftsmanship. They started hiring and rewarding different kinds of people. The void left behind is an area many successful “giant killers” end up filling.
Another is the encroaching presence of risk avoidance. Big company executives are paid to say “no” to risky things. The larger the company, the more risk averse they often become. They hire and reward people who fit neatly into their existing pre-conceptions, as a result. Risk is bred out of the company culture. As a result, bold product innovations – Method detergent, Sam Adams beer, Vibram FiveFingers shoes, Schweitzer Engineering digital protective relays – are only possible in cultures where such risk is embraced.
How can the small company find and add new customers right under the giant company's nose?
Stephen Denny: The best – and most counter-intuitive – way is to look forward to the giant’s big spending and capitalize on the flood of highly qualified traffic that ensues. Adobe provided a wonderful example of converting retail shoppers at the point of purchase with in-store demonstrations during a significant competitive merchandising event. This doesn’t just apply to physical stores, either. A story from Oslo University illustrated how leveraging the giant’s keywords drove search and ultimately enrollments for this “giant killer” higher education brand.
So let them spend the big dollars and drive the eyeballs and the foot traffic. That’s the most qualified crowd of potential customers you’ll ever see. Meet them there and convert them one by one.
Many people believe that the giant companies set the ground rules of the game in their industry. How can a small company create their own rules to compete with the big company?
Stephen Denny: Jim Koch told me that he set out to change how Americans thought about beer and is personally responsible for re-writing the rules of how we, in this country, all relate to this 10,000 year old human tradition. He is the proverbial father of the craft brewing movement. Look to Eric Ryan of Method, the original standard bearer for the sustainably formulated detergent industry. Cricket Holdings is re-writing how brand managers allocate advertising budgets with a “pay per lead” fixed cost business model. Lots of disruptive examples in Killing Giants.
Are there some real world success stories of small companies who took on the giants and won?
Stephen Denny: Often it’s a case of maneuvering to find a slipstream where the giant just doesn’t want to go, but there are plenty of examples where the “giant killer” just killed the giant it faced. Look at GoDaddy, now #1 in domain name registration and growing the fastest in its space. Look at Baidu, clearly #1 in search in their home market of China. Read about Searle Canada’s brilliant launch of their arthritis drug, Arthrotec, or Oi Mobile’s emergence in Brazil.
There are many categories where “giant killers” could quickly gain momentum and swamp the former giants in their spaces. Inspirational stuff!
What is the first step a small business person should take toward out-competing the giant in their industry?
Stephen Denny: First things first: create meaningful separation. Getting your messaging – the “arc of your story” – nailed down is the first step. Once you know who you are, all things are possible. Everything you do, from your website to your customer service to your product design, becomes an “eigen value” – a self-defining entity, something that could only come credibly from you. Nothing happens without a clear sense of who you are, who you’re not, and what you’re willing to leave behind and walk away from.
MINI is “an impossibly small car” for most – but for many, its size is the crystallization of how they feel about fun, responsibility, and stewardship in what Jim McDowell would call this ‘post-materialistic’ consumer landscape. Polarize your market. Let them choose you – or actively choose to not choose you.
What is next for Stephen Denny?
Stephen Denny: What’s next is spreading the gospel of Killing Giants. I find that speaking to companies and organizations about these ideas is tremendously powerful. Many businesspeople have unstated fears about competing and delivering the message live helps open them up to new possibilities. Once we cross this threshold, developing the right attack plan is an exciting process for everyone.
We all come from cultures where the archetypal story of the hero emerging and defeating the giant is central to our belief systems. Importantly, the hero then returns to the people and bestows the gift on them. In a life of business, this story resonates. It’s powerful. It’s also very timely. There’s plenty to do! Let’s get to work!
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My book review of Killing Giants: 10 Strategies to Topple the Goliath in Your Industry by Stephen Denny.
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