How can small companies use Aplus value to better compete ag

How can small companies use A-plus value to better compete against large companies that have a pricing advantage? select a small business and describe some things it could do to compete successfully. be specific

Solution

Small businesses have more options than they might think. Those options vary, depending on the nature of a company’s competitive assets. It is possible not only to survive but also to thrive alongside the giants.

Small companies, more than the superstars, need to keep their eyes on the ball. Here is the pricing advantage as the main way to smaller companies can compete head-on with the industry leaders.

Using price to compete with a giant is a tricky proposition. Below-cost promotions and give a ways to gain market share are questionable approaches, and could even be suicide for small startups. The key to remember is that your business model must provide customers with long-range value above a price that covers costs. Unless your business allows you to develop your inventory at prices much lower than the giants (e.g. purchase odd lots, closeouts, and damaged goods), then thread carefully on competing with national businesses on price. Instead on focusing on price, you can offer excellent customer service, develop unique distribution strategies, package for a specific market segment or patent a technology. The key is to provide value to customers and profit to your company.

For example, consumers purchasing an HP computer from the retailer, Best Buy, will have not only the computer itself, but also six months of \"free\" Internet access bundled into the price. Comparing the absolute value of each personal computer become more difficult as an increasing number of other products such as Quicken, Adobe\'s Photoshop Elements, and other software are sold together with the purchase. For Macintosh users or for those who might consider switching from a personal computer to a Macintosh, Apple announced in 2005 that it would begin selling the Mac Mini, a Macintosh that, as with PC makers, bundles its iLife ^® software into the mix. By extending its brand to non-premium price tiers, Apple will compete head-to-head with established firms. And although the Mac Mini is at a low price point, starting at $499, it will be difficult for consumers to directly compare the bundled products of PCs directly with the bundled products of Apple\'s Mac Mini. The complexity of these comparisons is what can make such new product pricing successful.