We all know that there will always be competition. In fact many would argue that a large pool of competing companies is actually a positive sign. After all, if there is more than one company doing the same thing that you do, then it's very likely that your target market has plenty of potential customers. When only few companies service a given market, they either have the market cornered, or it simply isn't large enough to for more than a few to survive in this area.
That being said, in many cases the existence of only a few large companies in a market may serve to scare off any one seriously considering a business in this area. This of course applies to those markets tied to geographical locations or online enterprises. Can a small enterprise truly compete against such monstrosities? In many cases the answer is a resounding no. In some areas however, a small company can actually thrive in the shadow of a large corporation. There are several reasons for this.
The foremost reason for this is the fact that many customers feel disenfranchised with large box stores or large online retailers. If the product they are interested in very specific, then the depth of knowledge a large chain may have may actually be less than one might expect. If you interested in learning the Zulu language for example, you may very likely find greater expertise and greater awareness with smaller stores than you might with a large language company that only produces the top thirty or forty languages.
Another issue is that many large companies, especially online, are often reticent when it comes to provides live operators or even direct phone numbers. Even regular and long term customers can grow quite frustrated to learn they must file an electronic ticket to have their complaint or question answered. Answering phones can certainly a be concern for a small shop, but a live person is often what reassures the person that they their orders will be handled probably and their future inquiries will be addresses by a real person.
Despite their deficiencies, this is not too say that large companies don't have clear advantages.
They have seemingly inexhaustible funds when compared to most endeavors, and their reach in terms of branding can seldom be surpassed. Picking the right niche and understanding your competitors' weakness however can produce a long lasting alternative for many customers and allow you to compete successfully.
That being said, in many cases the existence of only a few large companies in a market may serve to scare off any one seriously considering a business in this area. This of course applies to those markets tied to geographical locations or online enterprises. Can a small enterprise truly compete against such monstrosities? In many cases the answer is a resounding no. In some areas however, a small company can actually thrive in the shadow of a large corporation. There are several reasons for this.
The foremost reason for this is the fact that many customers feel disenfranchised with large box stores or large online retailers. If the product they are interested in very specific, then the depth of knowledge a large chain may have may actually be less than one might expect. If you interested in learning the Zulu language for example, you may very likely find greater expertise and greater awareness with smaller stores than you might with a large language company that only produces the top thirty or forty languages.
Another issue is that many large companies, especially online, are often reticent when it comes to provides live operators or even direct phone numbers. Even regular and long term customers can grow quite frustrated to learn they must file an electronic ticket to have their complaint or question answered. Answering phones can certainly a be concern for a small shop, but a live person is often what reassures the person that they their orders will be handled probably and their future inquiries will be addresses by a real person.
Despite their deficiencies, this is not too say that large companies don't have clear advantages.
They have seemingly inexhaustible funds when compared to most endeavors, and their reach in terms of branding can seldom be surpassed. Picking the right niche and understanding your competitors' weakness however can produce a long lasting alternative for many customers and allow you to compete successfully.
Jacob Lumbroso is a world traveler and an enthusiast for foreign languages, history, and foreign cultures. He also is a music fanatic and has a website where he provides information on Used Electric Guitars and Cheap Electric Guitars.
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