Blippar found that large, established companies wanted to fit new tech into old media silos (e.g., play a TV ad on a print ad). In contrast, challenger brands like Juice Burst were dream clients. Their risk appetite and hunger for an edge made them willing to experiment and create truly innovative use cases.
Established industries often operate like cartels with unwritten rules, such as avoiding aggressive marketing. New entrants gain a significant edge by deliberately violating these norms, forcing incumbents to react to a game they don't want to play. This creates differentiation beyond the core product or service.
Startups often fail to displace incumbents because they become successful 'point solutions' and get acquired. The harder path to a much larger outcome is to build the entire integrated stack from the start, but initially serve a simpler, down-market customer segment before moving up.
Instead of building a consumer brand from scratch, a technologically innovative but unknown company can license its core tech to an established player. This go-to-market strategy leverages the partner's brand equity and distribution to reach customers faster and validate the technology without massive marketing spend.
When introducing a disruptive model, potential partners are hesitant to be the first adopter due to perceived risk. The strategy is to start with small, persistent efforts, normalizing the behavior until the advantages become undeniable. Innovation requires a patient strategy to overcome initial industry inertia.
In a saturated social feed, generic ads fail. Small businesses can win by being creative, funny, or controversial. Their advantage over large corporations is speed and agility, as they can post bold ideas without the layers of legal and board approval that stifle creativity.
SMB owners are not asking for technologies like AI by name. They are asking for outcomes and efficiency. B2B marketers should position advanced features not as 'AI' or 'video tools,' but as embedded, invisible solutions that make a marketing hour more impactful. The goal is to provide tools that a business owner can naturally use to get a return, without needing to become a technology expert.
When competing against a resourceful incumbent, a startup's key advantage is speed. Bizzabo outmaneuvered its rival during the pandemic by launching a virtual solution in weeks, not months. This agility allows challenger brands to seize market shifts that larger players are too slow to address.
Brands miss opportunities by testing product, packaging, and advertising in silos. Connecting these data sources creates a powerful feedback loop. For example, a consumer insight about desirable packaging can be directly incorporated into an ad campaign, but only if the data is unified.
Professionals use sophisticated consumer apps like Nest and Ring at home, creating a powerful psychological contrast with their clunky work software. Startups can win by delivering a consumer-grade experience, which makes the product feel modern and intuitively superior to legacy enterprise tools.
Contrary to common advice, the biggest companies (Walmart, Tesla) are often the best first customers. They must innovate to maintain their #1 position and are willing to take chances on new tech that gives them a competitive edge or "alpha."