Smart Rivals: How Innovative Companies Play Games That Tech Giants Can’t Win

Traditional businesses should seek to differentiate themselves from, rather than mimic, big tech companies, according to this shrewd debut. Harvard Business School professor Zhu and Cao, a PhD candidate in the program, examine strategies that companies large and small have employed to stand out in the digital age. Suggesting that brick-and-mortar businesses can use their facilities to connect customers, the authors describe how Powell’s Books in Portland, Ore., fosters community by hosting book clubs. Traditional businesses can utilize internal data in creative ways, the authors argue, noting that Patagonia uses information gleaned from its repair program to guide design modifications (“If a product is [frequently] returned significantly earlier than the average five- to seven-year lifespan,” the company will adjust how the item is manufactured). Other anecdotes about Domino’s Pizza, PetSmart, Sephora, and Chinese fast fashion retailer Shein expound on how businesses might protect themselves from risk when partnering with tech companies and fight back against Silicon Valley’s incursion into their market space. The case studies buttress the authors’ arguments, though their recommendations to, for instance, cut deals with suppliers to ensure they won’t sell on Amazon will be easier to implement for larger companies, rather than mom-and-pop stores. Still, executives will appreciate the penetrating perspective. (Aug.)