Huge
versus small corporations
One
of the advantages enjoyed by these companies is the economy of scale. This is
due to the creation of an advantage on cost. Therefore these huge corporations
would end up decreasing the cost that they averagely incur per each unit by
increasing on the total number of units that they produce. This eventually translates
into cheaper and more affordable end products something that the smaller corporations
cannot afford to give.
Another
good thing about these companies is that they can invest more in specialization
through the breakdown of the production process into separated smaller tasks. At
the same time, they are able to hire more specialized workers who offer better
services than the smaller corporations. Therefore even if the large
corporations might be inefficient in terms of waste scales and delivery of
their products, they possess all the human resource they would desire to
satisfy their customers.
Huge
companies further enjoy a powerful bargaining power when it comes to dealing
with its suppliers. They can easily negotiate for fairer prices with their
supplies due to their massive demands unlike the small companies. Moreover,
they can adequately use those resources that are considered indivisible unlike
the smaller corporation to whom such resources might be regards as wastage;
example is facilities for doing research to better their services or sometimes
even campaigns of advertisements.
Being
a small or a medium business owner, there are limited options of ensuring that
you make an impact in the market. One of the ways to ensuring continuity in
business is by giving quality services and goods at all times hence get good
referral customers from other satisfied customers. This would eventually develop
into a large customer base. It would also require the hiring of a few
professionals to keep your customers satisfied. However the cheapest option
would be to properly utilize individual networking and use of internet
advertising. Most of the available
options might be expensive for the small business but with time profits will
trickle in due to a growing customer base.
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