How do small firms compete (CH 5) Flashcards
1
Q
How do small firms compete in competitive markets?
A
- Product differentiation and USP’s
- Gaining competitive advantage through relationships with stakeholders
- Economies of scale relative to market size
2
Q
Impact of small firms as monopolists
A
Can create niche markets where they use inelastic demand to charge higher prices.
- Providing more personal local service
- Suitable opening hours
