Small Companies Can Beat a Bigger Rival

Sometimes a sure thing isn't so sure.

Take the bad news that hit Boeing(BA Quote) this week. Widely expected to win a $35 billion contract to build refueling tankers for the Air Force, the company found itself beat out by Northrop Grumman(NOC Quote) and its partner, the European Aeronautic Defense and Space Co., or EADS, (which makes Airbus planes).

What can a small business learn from this high-profile air war?

Sometimes it pays to take on a larger, more entrenched rival. Just make sure you've got the product to back up your challenge. ...