What Can Small Businesses do to Compete With Next Door Giant Companies?
This is a post I will appreciate interaction between readers as well as sharing of experiences, thoughts and believes, theories and laws
I watched a documentary some days back and in the documentary, a lot of small store complained about the existence of Wal-Mart in their business environment and how it has affected their businesses. After going through the documentary, I was forced to ask this question; what can the owner of a corner store do to beat/compete with a Wal-Mart superstore opening just down the road, or how can a small hamburger stand take on McDonalds? What can smaller competitors do to remain in the game when giant companies and brands are in the same environment?
Can knowing exactly what benefits their customers need or want and augmenting the needs with excellent service be a way out? Let’s leave the business core product aside since both the giants and the smaller companies have core products, is it possible for small businesses to beat the bigger companies in augmented products?
If you are lost about what a core product, an actual product and augmented product are, let me do a simple explanation;
- The core product is the product a business is selling to their customers, it is the product that holds the benefit the consumers get.
- Actual Product is what differentiates the same product, it is what distinct a customer’s choice of core product. Buger King and McDonalds both produce Burger but what differentiate the products such as packaging, design and so on is the actual product. The actual product Is what a consumer trust.
- Augmented product are additional services such as installation, delivery, credit, guarantee, warranty and other after sale services.
One thing that occur to most entrepreneurs when a bigger business comes into town to compete is the fact that they want to remain in the game but not all entrepreneurs know how to remain in the game. If a bigger corporation is your next door neighbor, is it possible to beat them in the game and still remain in the game?
A small entrepreneur was sharing with me that he had faced such and what he did was he had to study the specific products his big competitor wasn’t selling and the products it didn’t sell well. Another said, doing things like free pick-ups and deliveries is what has been the blood life of the business. Another says “‘regularly ask your customers questions to determine their needs instead of feeling your way along with your own advice, they are the reason your business exists.
How Do You Think a Small Business Can Compete With a Next Door Giant Company?
Please share your thought, opinions, believes and or experience, they are valuable. What will you do if a giant company that sells the same core product as you becomes your next door neighbor and competitor?
Good plans and marketing make everything possible
Thanks for your contribution @reviewzzz, but don't you think the giant companies will have higher advantage in marketing when compared with a start up.
This is a very interesting topic in form of a question. Surviving among giants can be very difficult as the giant companies have both the skill, experience, expertise and fame which small businesses do not have.
One way a small business can compete with a large one is by creating personal relationships with the customers. Relationships like regular text messages, calls, simple mails and personal chats as though they are part of your business partners.
Wow, that is a nice idea that is definitely require lots of time and attention, thanks for your contribution
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Hi @ben-edom
I believe that Augmented product and actual product are the necessary bases to combat current brands that are in control. Above all, bringing added value to your customers at the best price, the best value for money, therein lies the key to success. I also add that the treatment and personalized attention carry a lot of weight and make a big difference.
But don't you think that when trying to provide goods at a low price, the giant companies will have an edge there as a result of their high financial capacity .
Yes, indeed the big Enterprise has.
Certainly going into a price war with a giant company is a bad idea.
Staying relevant and strong as a small business when there is a bigger corporation or business can be very difficult but proper customer service, marketing, teaming and mergers, and other promotional services can help conquer.
Hi @ben-edom
Another interesting post. Thanks for sharing - upvoted already.
I think in business we need to really understand our unique selling points and product differentiators. If we are trying to compete with the big boys by doing the same things it is not likely to work as they have economies of scale and market power that we cannot compete with. We must be clear about why we are different.
That's true @awah, getting our unique point will keep us at the centre of the game.
Augmented product is one very important way that small businesses can challenge big companies.
I think going through that pain is really a sure way to compete with big companies, thanks for sharing your opinion.
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I feel like this post somehow tilts towards public relations. Sometimes studying what a consumer needs can also help you to serve your customer better this way, a consumer will find a reason to keep patronising you even if there's a big competitor in town. Beautiful Post
Alright jossedicus, I appreciate your opinion.
Hi @ben-edom
I think that something very important is the treatment of the client, that leaves its mark and it is a passive publicity that this client will take to other friends.
Normally, these large companies lose a great human sense and become just a mercantile company. A small company at the level of employees, however, as it has to compete, it must seek the best alternative. For this reason, I say that customer treatment will make a difference.
That treatment to the client I repeat will be the best advertising and having products that the other large company does not cover, for the small company it would make a difference and would not consider it a competition due to the branch of each one.
Saludos.
I also agree with you on this @lanzjoseg, a good customer reputation will go a long way to make them always come back to shop with you. Thanks for sharing your thought.