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Are you listening to the builders podcast from business.com? Today’s conversation is with Katya Allison, marketing consultant and host of Let’s Talk Marketing. Katya shares insights on how TikTok can fit into your strategy, the power of AI in content creation, and why data storytelling is essential when presenting to executives. Watch the episode on YouTube or listen on your favorite audio app.

Smart Rivals: How to compete against tech giants

7-Eleven: Chain gets a Japan-inspired glow-up

Arizona Iced Tea: How is it still less than a buck?

(Source: Harvard Business Review Press)

It may feel like the digital age has already been won, but small-business Davids can still triumph over Silicon Valley’s Goliaths, according to Harvard Business School’s Feng Zhu and Bonnie Cao. In their new book, Smart Rivals: How Innovative Companies Play Games That Tech Giants Can’t Win, Zhu and Cao detail how startups can work harder and smarter to stand out. 

The duo spoke with b. about what it takes to surge forward by tapping into your distinctive strengths.

b.: Why, according to your research, is emulating big tech companies usually ineffective?

Cao: Many companies are attracted to the remarkable success and market dominance of big tech companies. They want … recipes or formulas to copy and apply in their own businesses, hoping for similar returns. 

Zhu: Traditional businesses often lack the capabilities, such as advanced technical expertise and infrastructure, that tech giants have developed over many years. Attempting to develop such capabilities to the same level as tech giants is unrealistic for most traditional businesses.

[They] may fall into the trap of just copying the strategies of tech giants. This approach often leads traditional businesses into head-on battles with tech giants that are hard to win. Smart rivals need to continually challenge their conventional thinking, pushing themselves to become innovative leaders instead of merely following in the footsteps of tech giants.

b.: What advantages do traditional companies have?   

Zhu: For instance, Domino’s has developed superior capabilities in pizza order fulfillment, and Sephora is well known for its personalization. As we detail in the book, both companies have leveraged technologies to amplify their strengths to a level that tech giants find difficult to match.

Cao: Becoming a smart rival requires … insights not readily available from data analytics or by observing tech giants. 

b.: You highlight several companies that are standing out and outsmarting the tech giants. Each example is unique, but what are some common strategies? 

Zhu: They have all created their own path to success instead of playing the catch-up game with tech giants. … Take Powell’s Books, a bookstore founded in 1971 in Portland. In response to the rise of Amazon, Powell’s focused on connecting readers and building a community. They host over 500 author events each year, bringing readers together to meet and learn from their favorite authors in person, allowing them to connect over shared interests in the author or genre and allowing Powell’s to survive and thrive.

b.: Is there any merit to trying to emulate some of the strategies tech companies use?

Zhu: Digital transformation is crucial for every business today. Learning from the success of tech giants can be incredibly valuable for business leaders, helping them recognize the power of digital technologies and understand how to become more customer-centric while building platforms and ecosystems. … However, it’s essential for business leaders to view digital transformation as a toolkit, not the ultimate goal.

Smart Rivals is now available. 

This interview has been edited for length. Read our full Q&A at business.com.

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(Source: Shutterstock)

7-Eleven has a problem: Year-over-year net profit is down a Big Gulp–size 50%. So what’s an iconic American convenience-store chain to do?

Well, 7-Eleven is technically a Japanese chain — as of 2005, it’s owned by Tokyo-based Seven & i Holdings — and there are even more 7-Elevens in Japan (about 21,000) than in North America (13,000). Notably, its Japanese “konbini” stores focus on quality, not just quantity, with restaurant collabs, fresh local sushi, milk tea, and pillowy-soft “sandos.” It’s a snack destination that customers don’t just pop into out of necessity. 

That quality may be the ticket to a stateside comeback. The company is remodeling its North American stores to better reflect its Japanese ones, including fresh food and a more data-driven approach to inventory (40% of products in U.S. 7-Elevens sell under one unit per month).

Only time will tell if the strategy works, but here’s hoping it’ll save us from warmed-over hot dogs and stale nachos.

(Source: Shutterstock)

A cold can of Arizona Iced Tea still costs exactly what it did when it debuted in 1992: 99 cents. That’s despite high-fructose corn syrup tripling in price over two decades, and aluminum costing more than double what it did just a few years ago.

Adjusted for inflation, 1992’s $0.99 is $2.22 today. How can Arizona Beverages possibly afford that?

“We’re successful,” co-founder Don Vultaggio told “Today.” “We’re debt-free. We own everything. Why should people who are having a hard time paying their rent have to pay more for our drink? Maybe it’s my little way to give back.”

Sure, the cans are thinner than they used to be. Production and shipping pipelines have been shrewdly improved to maintain profit. However, the never-changing meme of a price leads to both customer goodwill and perennial positive publicity. Whatever the brand value of that, it’s a whole lot higher than 99 cents.  

Written by Tina Nazerian and Dan Ketchum.