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Classic David vs. Goliath: Are Big Corporations Driving away Neighborhood Shops - Research Paper Example

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The author of the paper states that large corporations, such as Wal-Mart and Home Depot, have been criticized for driving mom-and-pop shops out of business. The author identifies whether the criticism is valid and whether the American public has some role to play…
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Classic David vs. Goliath: Are Big Corporations Driving away Neighborhood Shops
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Download file to see previous pages Struggling to keep afloat, many have either sold their businesses, had to drastically change their business model, or have gone out of business altogether. While there may be some validity to the notion that large corporations are slowly causing the demise of small businesses, the American public can be seen as partly to blame for this modern-day phenomenon as well.

Many wonders if competition in the marketplace should be fair, or whether the business mentality in America should be seen as survival of the fittest were the one with the most customers and the biggest revenue wins. The free enterprise system prides itself on giving the consumer a choice. In addition, the system itself is designed to give anyone a chance of making it big, even if that means a large multinational corporation. To stay afloat, small businesses must adapt to the reality the big corporations are here to stay. There is, however, a way to remain competitive and for a small business to retain its place as a neighborhood shop.

There are current laws guarding against the establishment of monopolies in many Western countries, including the United States, but this does not preclude a given business from becoming so large that is squeezes out smaller competitors unable to keep pace. The reality is such that big businesses have more buying power and are often able to sell goods at a lower price than other businesses of their type but of a smaller size. The fear, of course, is that once neighborhood shops are driven out of business, then large corporations such as Home Depot and Wal-Mart will have little incentive to keep their prices low. There is also the feeling across America that the loss of the mom and pop shop will be like losing a part of American culture and its heritage. In order to determine how to save these shops, however, one must first come to a conclusion about what is really causing the small business to become a thing of the past in the first place. ...Download file to see next pagesRead More
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