veryone loves an underdog. Unfortunately, most of them fail despite the support fiom the sidelines! But can we learn anything from the battles these un-E derdogs fight? In particular, can we learn fiom those few that defj the odds and actually win against much bigger competitors? A study of 30 companies from eight countries, in industries ranging h m financial services to food processing, suggests that we can (see "Global Movers and Shakers," page 41). All were small companies that went against formidable competitors but managed to quickly grab a sigdicant share of the market, without the benefit of a technological innovation.
For example, Komatsu attacked much bigger competitors in the earth-moving equipment business-competitors such as Caterpillar, John Deere and J.I. Case-and still managed to increase its global market share from 10 percent to 25 percent in under 15 years. Gannett Company launched USA Today in 1982 as the first national newspaper and, despite facing a crowded field (1,700 daily newspapers), managed to become the top-selling newspaper in the country by 1993 with more than 5 million copies a day. Direct Line, launched in 1985 to sell car insurance by phone, signed 2.2 million policyholders in ten years and became one of Britain's largest car insurers. Starbucks Coffee grew h m a chain of 11 stores and sales of $1.3 million in 1987 to 280 stores and sales of $163.5 million in just five years.
What these underdogs achieved is remarkable. The question is, How did they do it? and What can we learn h m their success?
Creating New Strategic Positions he answer, I believe, is simple: these companies achieved so much so quickly be-T cause they created nau strategic positions in the business. Instead of attaclung established competitors in their existing (and well-protected) positions, these innovators Summer 1999 39