How David Beats Goliath

There’s an article in the current issue of The New Yorker that everyone running or starting a small business needs to read.  Seriously.  Read it.  It’s long (8 pages!), but read the whole thing.  The stories and examples are worth it.  It’s written by Malcolm Gladwell (you know, Tipping Point, Blink etc.).  Here’s a summary (but read the article!):

1) In David vs. Goliath conflicts throughout history, David actually beats the giant about 29% of the time.  There is a repeatable strategy underdogs can use when competing against established giants.

2) The established giant sees the “game” a certain way, with a certain set of rules, protocols and strategies.  These are the rules the giant mastered on his way to becoming the giant.  He is really good at them.

3) The underdog almost always wins *if* they break the rules and play a different game than the giant is used to.  This doesn’t mean faster or with more flare, it means a totally different game.

4) The giant (and game observers) almost always find the underdog’s rule-breaking morally objectionable.  Think the British vs. the American Colonies, Al Qaeda vs. U.S.A., I’m a Mac vs. I’m a PC., Netflix vs. Blockbuster.

Conclusion: If you are a startup competing against established or larger competitors, break the rules.  If your website, marketing material or business plan is similar to your competition’s,  you’re doing it wrong.  David didn’t just use a fancier sword than Goliath.  He didn’t use a sword at all.  Better design, a slightly faster product or  more colors isn’t enough.  You have to change the game.