Nintendo’s approach to making video games isn’t to outdo its competitors in hardware or graphics. “At its heart, making toys is about using existing technology skillfully to deliver a surprising experience. It’s not a matter of whether or not the tech is cutting edge, but whether or not people think it’s fun,” says the late Satoru Iwata, who served as Nintendo’s president and CEO.

Nintendo’s Wii, DS, and Switch devices all focus on delivering new gaming experiences with motion controls and portability. They include really polished stories, fun game mechanics that you can quickly grasp, and new ways of using old technology (or in their words, “Lateral thinking with seasoned technology”).

“Mr. Yamauchi back in the day would tell us that we are not good at fighting: ‘We are weak—so don’t go picking fights with other companies,’” Shigeru Miyamoto says. Nintendo leans away from its weakness—directly competing with its more well-funded competitors to make games with good graphics and high fidelity. 

Instead, it leans into its strengths—making fun, well-considered, game experiences with overlooked technologies that appeal to everyone. Wii’s controller bears more resemblance to a remote control than a conventional video game controller because it wants to be something that the entire family would use.

If you find yourself or your business in a position where you don’t have a direct competitive advantage—not as well-funded, not as well-known, not as easy to work with—then you also need to find a similar approach. 

You would be well-served approaching your customers not by beating your competition at their games, but sticking to your own strengths. This usually requires imagination, ideas, and creativity, but as long as you’re willing to do it, you can still compete and win.