The most valuable companies aren't always the biggest

The most valuable companies aren't always the biggest. Sometimes, retreating from the spotlight to master the essential is the ultimate strategic move.
An excellent recent article in the FT, "Can Japan hold on to its 'indispensable' companies?" discusses how small—to mid-sized firms dominating niche global markets are increasingly threatened by foreign takeovers.

While the article points out these firms' current vulnerability, the more interesting part is how the firms, in an era obsessed with scale, quietly pivoted to owning the irreplaceable pieces of global supply chains.

For example, Japan's mid-sized champions control 70% of high-end bicycle components, 60% of premium motorcycle helmets, and the critical resins that make your iPhone possible. Japanese companies hold 60 %+ market share in over 200 specialised technologies.

These firms remind us that indispensability beats size every time. The lesson? Sometimes, the strongest position isn't the biggest player in a big market. It's being the only player who can do something critical/valuable that everyone else needs.

Also, with AI commoditising more industries, the question isn't how to compete based on the obvious metrics everyone can see. It's how to build capabilities for your company and your leadership that others can't replicate.

In your industry, what capabilities do everyone need but few can provide? And how do you build toward those positions before they become evident to everyone else?
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