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Effects of Big Businesses on Small Businesses - Essay Example

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This paper "Effects of Big Businesses on Small Businesses" discusses limiting the scope of big businesses as a threat to the small business that would be a narrow approach of seeing the picture since many dimensions of the business giants show an opposite trend…
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Effects of Big Businesses on Small Businesses
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Download file to see previous pages The supercenters like Wal-Mart are recorded to have dropped the share of small businesses in almost all areas where they are operating (Stone, Artz, & Myle, pp.12 & 13).
It is a datum of experience that the major attribute of power bearing body is its transcendence in development as compared to its contemporaries. The same goes for the world of business too. According to the studies of Jane L. Parpart, Shirin M. Rai and Kathleen Staudt in ‘Rethinking empowerment, gender, and development’, the term ‘power’ has often been used as an alternative for the developmental approaches. Stated differently, the concept of power cannot be separated from development. According to Keith Rankin in ‘Global Transition; a General Theory of Economic Development’, these are the developmental strategies that make anybody a strategic pioneer – an innovator with a better idea than the others (2002, p.316). Since large companies are more advanced, they are the power holders in business.

The impact of giant businesses on smaller companies is backed by the differences between them. Large businesses have an edge on the basis of their resources. These resources are both financial and non-financial. However, the excess of resources is not a sufficient explanation to prove their success. Therefore an important question is to explore why bigger businesses do better than the smaller ones. The overall success process is explained by Chandler who says that the big companies start with an investment in three major areas i.e. the process of production, marketing, and management. This investment builds its corporate strength in the market. The companies then expand further by their R&D and explore new ways of production in a lesser amount. It is often through price leadership that the companies excel in the market. With increasing success, the very businesses expand to the new markets and pose a threat to multiple small businesses simultaneously (Fleming, Merrett & Ville, 2004, p.2). ...Download file to see next pagesRead More
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