Can you open a coffee shop in a city where Starbucks sits on every corner? Or launch a new banking app when the market already seems divided among global giants? Most of us would say: “Impossible.” Fortunately, markets dominated by large players still hold plenty of opportunities. In fact, it’s hard today to find an area completely “unclaimed” by serious competitors – which makes it even more important to ask how and where to look for opportunities.
Wherever a giant takes root, space appears for those who can look at the customer from a different angle. McDonald’s conquered the world of fast food – yet hundreds of premium burger brands emerged alongside. IKEA made furniture cheap and accessible – at the same time, brands built on design, craftsmanship, and personalization thrived. Coca-Cola symbolizes the global soft drink – yet smaller, local producers win hearts with naturalness and simplicity.
The problem is not that you “cannot compete with a giant.” The problem is that too many companies try to fight on the giant’s own terms – and in that game, they truly have no chance. You can only win by showing the customer a different kind of value than the one defined by the leader.
In this article, I will share how mid-sized and large companies can successfully win customers in markets dominated by global and national giants. I’ll highlight examples of brands that found their place where it seemed there was no room left. And I’ll show how to think about your own strategy – not by chasing the giant in his game, but by inviting the customer to play by your rules.
Giants as Category Creators, Not Monopolists of Value
Large companies have enormous power – they define how a market category looks. When we think “fast food,” the golden arches immediately come to mind. When someone says “stylish furniture at a good price,” most people picture IKEA’s blue-and-yellow logo. And “e-commerce”? For many customers, that’s simply Allegro, Temu, or Amazon.
But the role of giants is not just to satisfy customer needs. They shape habits and teach consumers how to buy. And paradoxically, that opens space for those who can offer something different.
- McDonald’s built the fast-food market on a simple message: fast, cheap, always the same. This gave space to others – from premium burger restaurants to food trucks – which sell not just “fast food,” but “food with character.”
- IKEA turned furniture shopping from a long-term investment into everyday consumption. But that opened the door for companies that differentiate through personalization, craftsmanship, or timeless design.
- Coca-Cola has for decades stood for soda, emotions, and global scale. Yet other brands and local juice producers win loyal customers who seek authenticity and natural taste.
The giant sets the standard – but a standard is not the same as full customer satisfaction. There will always be groups who feel something is missing: quality, flexibility, or a sense of uniqueness. That’s exactly where opportunities arise for others.
Dimensions of Value You Can Capture
The key to competing with a giant is not trying to do the same thing, just cheaper or faster. That’s a losing game. Real advantage begins when a company chooses a different dimension of value – something the market leader cannot deliver.
Here are four common directions:
- Price vs. Quality
Big players often compete on price and scale. But mass production means compromises in quality. That’s why premium burger restaurants thrive next to McDonald’s. In fashion, Zara and H&M dominate with fast collections at low prices, but niche premium brands attract customers with fabric quality and attention to detail. - Speed vs. Flexibility
Giants deliver quickly, but in standardized ways. Smaller firms can stand out through flexibility. For example, traditional banks offer apps with dozens of features, but fintechs like Revolut won popularity by being simple, intuitive, and fast. - Customer Experience
Large companies often feel impersonal. Service may be correct, but it lacks warmth. That leaves space for brands that win through relationships and authenticity. Local bookstores survive not because they beat Amazon on price, but because they create an atmosphere a global platform never could. - Personalization and Identity
Giants serve “everyone.” But in today’s world, consumers increasingly want to be treated as unique. Netflix dominates streaming, yet platforms like Mubi attract audiences who prefer niche, artistic cinema. In fashion, Patagonia thrives not through mass appeal, but through authentic activism and a brand identity customers want to be part of.
Each of these directions doesn’t cut away from the giant but builds on his presence. Giants educate customers about the category, while smaller players fill the gaps in expectations – and turn those gaps into competitive advantage.
Blue Ocean: Creating New Space
Competing with a giant often feels like playing football against a team with a full stadium of fans, a bigger budget, and star players. Chances of winning? Slim. But what if… you didn’t have to play on the same field?
That’s the essence of the Blue Ocean Strategy: instead of fighting in a crowded “red ocean” of bloody competition, companies create their own “blue ocean,” where rivals are few – or none.
Examples include:
- Starbucks – rather than being “another coffee shop,” it created the category of the “third place” between home and work. Customers don’t just buy coffee; they buy atmosphere, music, wi-fi, and comfort.
- Tesla – it didn’t try to be a cheaper or faster BMW. It built a new value proposition: an electric car that delivers status, innovation, and ecological identity.
A blue ocean is not just theory. It’s a practical reminder: don’t always ask, “How do we beat the leader?” Sometimes the better question is: “How do we offer something no one else has?”
And often, blue oceans don’t appear in entirely new industries but at the crossroads of existing trends: technology, lifestyle, and new consumer values. Giants rarely react quickly – their strength lies in scale and repetition, not agility.
The Polish Market: Lessons from Our Backyard
Foreign cases inspire, but for Polish managers and business owners the question is: what does this look like here? And again, we see giants don’t lock the whole market – they leave space.
- Żabka – the clear leader in convenience, with over 10,000 stores, aggressive expansion, and tech innovation. Yet local organic stores and bio-markets grow alongside, offering authenticity, local products, and personal relationships.
- Allegro – the synonym of online shopping in Poland. But its dominance pushes brands to build their own direct-to-consumer (D2C) shops, investing in storytelling and unique brand experience.
- InPost – virtually monopolized parcel lockers and became part of daily life. But its dominance creates opportunities for competitors who deliver other values – like express, door-to-door delivery within the hour.
- CCC and LPP (Reserved, Cropp, House) – Polish fashion giants with huge scale and marketing power. Yet thanks to them, premium and niche fashion brands thrive, from artisanal shoemakers to local streetwear labels.
- Rossmann – seemingly unshakable in drugstores. Yet smaller premium chains grow, targeting women who want organic cosmetics, niche perfumes, or products unavailable on mass-market shelves.
The Polish market proves a rule: the stronger the giant, the more space for those who choose to offer something other than mass appeal.
What Research and Consumer Trends Tell Us
- Personalization is now an expectation. According to McKinsey, 71% of consumers expect personalized interactions, and 76% feel frustrated when they don’t get them. Companies that “get it right” with personalization create significant business value.
- Customer experience drives willingness to pay. PwC reports that 73% of customers see CX as a key decision factor, with 43% ready to pay more for greater convenience and 42% for friendlier service.
- Trust and authenticity strengthen loyalty. Nielsen shows 88% of consumers trust recommendations from friends more than any other channel. New brands that build authentic relationships break entry barriers more easily.
- Value for money doesn’t exclude premium. EY research finds that while consumers want price predictability, they remain open to premium services if the value is clear.
- ESG has limits – credibility matters. Many claim they’d pay more for sustainable products, but fewer actively seek information. Competitive advantage comes from transparency and real benefits, not slogans.
Key Takeaways for Managers and Boards
Giants may feel like threats, but in reality their presence creates room for others. They build categories, educate customers, and shape habits. That means mid-sized and large companies can win where leaders – by their very scale – can’t act flexibly.
The main lesson: don’t compete in the giant’s game. If the leader wins with price and scale, your edge must be in what he undervalues: personalization, flexibility, experience, local focus, or brand identity.
Three strategic questions worth asking:
- What value are the giants in my industry ignoring?
- What emotion can I deliver that they cannot?
- Is my company a “copy” of the leader – or am I creating my own space?
Giants are not obstacles. On the contrary, their presence signals that a category matters and has a future. And in their shadow, companies grow that know how to look differently – and find their own angle in the fight for the customer.