Abstract:
Small firms are disadvantaged when competing with large firms. Conventional wisdom suggests small firms should target niche markets neglected by large firms, but most large firms have used a niche strategy for some of their products, suggesting small niches are not safe anymore. This study attempts to address a key challenge small firms face: how to survive competition with few advantages. My main argument is that small firms should shift attention from the supplier-side competition to value creation in the demand environment. If consumer value is created, competition is likely rendered irrelevant.
