Guerrilla strategies for underdog competitors

Abstract

A small firm, like Key Pharmaceuticals, pioneers niche businesses by developing novel ways of delivering medicine to a patient's bloodstream—for example, nitroglycerine absorbed through adhesive pads on cardiac patients' chests. Key Pharmaceuticals is viewed as an ally by the large pharmaceutical firms as long as it stays out of their drug discovery businesses. • A small company refuses to abandon loyal customers when other firms stop producing products that face declining demand. For example, Beaunit makes cupramonium‐process rayon, which is needed by the small casket‐velvets market; enterprising electronic component distributors buy out inventories of obsolete vacuum tubes to supply a few good customers who don't want to retire their equipment before it wears out. Neither firm is challenged in its market niche because competitors don't consider the rewards worth the effort. • The “new company on the block” demonstrates its credibility by investing aggressively in a pioneering idea—as Archer‐Daniels‐Midland did with high fructose corn syrup in the maturing corn wet milling industry. The gamble succeeds because its larger rivals ignore its activities—perhaps because they don't consider the pioneer a threat; or because they believe that they can easily copy the pioneer's successes; or they're busy with more important battles in other markets.

Citation

Rudie Harrigan, K. (1986), "Guerrilla strategies for underdog competitors", Planning Review, Vol. 14 No. 6, pp. 4-45. https://doi.org/10.1108/eb054164