Part of the challenge for the mega firms is that they don’t easily see their weaknesses.
Consider an analysis of David and Goliath’s apparent strengths and weaknesses, as follows:
David’s strengths – Very brave
David’s weaknesses – Small, inexperienced in one-on-one combat, no armour
Goliath’s strengths – Huge, strong, experienced, good armour and brave
Goliath’s weaknesses -???
Doesn’t look good for David. But the analysis is misleading. The analysis misses several things:
- David is quick
- David is good with a catapult (slingshot) and has it with him
- There are small stones on the ground
- Goliath’s armour doesn’t cover his forehead
It turns out that you might be like David – thinking you have apparent weaknesses, but actually with potential strategic advantages.
It’s very difficult for the larger firms to spot their weaknesses – the biggest of which are potentially complacency and poor strategic analysis.
Whether you are a David or Goliath, don’t be complacent about your strategic analysis.
Acknowledgement: The David & Goliath analysis is based on Good Strategy Bad Strategy by Richard Rumelt. See http://goodbadstrategy.com/