YA0213-04..docx - Running head EFFECTIVE COMPETION OF SMALL...

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Running head: EFFECTIVE COMPETION OF SMALL BUSINESSES 1 Small Businesses can Effectively Compete with Large Organizations Student’s Name Affiliated Institutions
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Running head: EFFECTIVE COMPETION OF SMALL BUSINESSES 2 Small Businesses can Effectively Compete with Large Organizations Introduction Any type of business will face competition during its competition. In a similar competition is a natural segment of life for the small-scale businesses. It is, however, intimidating when these small-scale organizations go head to head with large organizations and MNCs that are perceived as large corporations. After all, these large organizations have numerous competitive advantages such a largely recognized brand. Additionally, the large organization can easily outspend the small organizations in advertising and sustenance of competitive advantage especially due to their large pool of finances. In most cases, the economies of scale are used by large organizations to undercut small organizations on their prices and that large organization can purchase better organizational stores and organizational equipment for effective organizational operations. So, in such an environment, can small businesses effectively compete with large organizations? The answer is yes, small firms to have their own advantages including appropriate and strong relationships with their consumers, operational speed, trust between the organization and the consumers among others. In China for example, compared to 52% of public companies, 80% of consumer’s trusts family-owned small businesses. Such is one of the greatest operational advantages for small-scale businesses. In this paper, therefore, there are numerous strategies that have been discussed to showcase that despite large companies being in possession of resources, finances and a market competitive advantage, small-scale businesses can easily compete with the large businesses if not outdoing them. To begin with, small companies can effectively compete with large companies based on the fact that fundamentally, the small companies are mainly after service advantages, they are more focused on customer service to maintain sales. For example, of all the Chinese sales,
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Running head: EFFECTIVE COMPETION OF SMALL BUSINESSES 3 the small businesses account for about 54% of the total sales in the country. However, the task of ensuring that the small-scale companies generate sales up to 54% especially in the presence of large companies that possess greater competitions is not easy. In this regards, The
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