LOVELY PROFESSIONAL UNIVERSITY

FACULTY OF MITTAL SCHOOL OF BUSINESS

Name of the faculty member : DR. MD ABUSAAD

Course Code: ECO113 Course Title: Business Economics

Academic Task No: 01 Academic Task Title: Assignment 1
Date of Allotment: 12-02-23 Date of Submission: 21-02-23
Student Roll No: RQ2209A19 Student Reg. No: 12215296
Term: 02 Section: Q2209
Max. Marks : 30 Marks. Obtained:
Evaluation Parameters

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Declaration:

I declare that this Assignment is my individual work. I have not copied it from any
other students’ work or from any other source except where due acknowledgement
is made explicitly in the text, nor has any part been written for me by any other
person.

Evaluation Criterion: Rubrics on different parameters

 Student’ Signature: TADAKAMALLA SAKETH RAM , AQIB YAQOOB BHAT,

ANSHU KUMARI, GAURAV KUMAR , SUSHMA,

MOKSHDEEP KAPOOR, SIMRANJIT KAUR

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Best part of assignment

Improvement

PEER RATING FORMAT

S.NO REGISTRATION NO. NAME PEER RATING

1 12215296 TADAKAMALLA 10/10

SAKETH RAM

2 12200859 AQIB YAQOOB BHAT 10/10

3 12202318 ANSHU KUMARI 08/10

4 12206368 GAURAV KUMAR 08/10

5 12207211 SUSHMA 8.5/10

6 12204137 MOKSHDEEP KAPOOR 09/10

7 12207303 SIMRANJIT KAUR 10/10

INTRODUCTION :

The topic of small companies competing with larger rivals is a subject of great
interest and significance in the business world. Large corporations have numerous
advantages such as economies of scale, well-established brand recognition, and
extensive distribution networks, which can make it challenging for small
businesses to compete. However, despite these challenges, many small companies
have been able to achieve success by leveraging their unique strengths and
adopting innovative strategies.

In today's fast-paced and dynamic business environment, small companies must be

agile, adaptable, and customer-focused to compete effectively with larger rivals.
This requires a deep understanding of the market, a keen sense of innovation, and a
willingness to take risks to stand out from the crowd.

Over the years, small businesses have been able to compete in various ways. One
approach is to specialize in niche markets, offering unique products or services that
are not widely available from larger competitors. Another approach is to provide
personalized customer service and build strong relationships with customers. Small
businesses can also leverage technology and innovation to gain a competitive
advantage

Overall, the topic of small companies competing with larger rivals highlights the
importance of agility, innovation, and customer focus in the business world. In this
increasingly competitive market, small businesses must be creative and flexible,
utilizing their unique strengths to differentiate themselves from larger competitors
and create value for customers.

Links to other readings/references :

Here are some links to additional readings and references related to small
companies competing with larger rivals:

1. "The Small Business Advantage: How Your Small Business Can Compete with
Big Companies" by Andrew Beattie (Investopedia) -
https://www.investopedia.com/articles/pf/08/small-business-advantage.asp

2. "6 Ways Small Businesses Can Compete With Large Corporations" by

Andrew Gazdecki

(Forbes) - https://www.forbes.com/sites/allbusiness/2018/01/03/6-ways-small-

businesses-can-compete-with-large-corporations/?sh=1e4aa01a7d4f

3. "How Small Businesses Can Compete with Large Enterprises on Social Media"
by Sujan Patel (Entrepreneur) - https://www.entrepreneur.com/article/307863

4. "5 Strategies for Small Business Survival in a Competitive Market" by Rieva

Lesonsky (Small Business Trends) -
https://smallbiztrends.com/2017/09/competitive-market- strategies.html

These resources offer insights and advice on how small businesses can compete
with larger rivals, providing useful tips and strategies for success in today's
competitive business
Ideas:

Here are some ideas on how small companies can compete with larger rivals:

1. Focus on a niche market: Small companies can focus on a specific niche

market that larger competitors may not be interested in pursuing. By providing
specialized products or services that meet the unique needs of a specific customer
segment, small companies can differentiate themselves and build a loyal customer
base

2. Leverage technology: Small companies can leverage technology to improve

efficiency and reduce costs. By adopting automation tools and cloud-based
software, small companies can streamline their operations and compete with larger
competitors on cost and efficiency.

3. Build strong partnerships: Small companies can build partnerships with

other small companies or local suppliers to increase their reach and reduce costs.
By forming partnerships, small companies can leverage each other's strengths and
gain a competitive advantage over larger rivals

4. Provide excellent customer service: Small companies can provide

personalized and attentive customer service to differentiate themselves from larger
competitors. By building strong relationships with customers, small companies can
increase customer loyalty and retention.
5. Emphasize quality and innovation: Small companies can emphasize quality
and innovation to differentiate themselves from larger competitors. By developing
unique products or services that meet the changing needs of the market, small
companies can create a competitive advantage and stand out in a crowded market.

6. Develop a strong brand: Small companies can develop a strong brand that
resonates with their target audience. By investing in branding and marketing, small
companies can increase their visibility and build a loyal customer base.

7. Stay agile and adaptable: Small companies can stay agile and adaptable to
respond quickly to changes in the market. By staying up-to-date on the latest
industry trends and being flexible in their operations, small companies can
compete with larger rivals and stay ahead of the curve.

In summary, small companies can compete with larger rivals by leveraging their
unique strengths and adopting strategies that allow them to stand out in a crowded
market. By focusing on customer needs, quality, innovation, and efficiency, small
companies can thrive and succeed in today's highly competitive business
environment
Discussion and data interpretation :

Small companies often face intense competition from larger rivals, who have the
advantage of economies of scale, established brands, and more extensive
distribution networks. However, small companies can compete effectively in many
ways, as we discussed earlier.

According to a study by the Small Business Administration, small businesses

account for nearly half of all private-sector jobs in the United States, showing that
despite the challenges, small businesses are still a critical driver of the economy. In
fact, many small businesses have been able to thrive in recent years by leveraging
technology and innovation to gain a competitive advantage over larger
competitors.

Data also suggests that small businesses can often provide better customer service
and more personalized attention than larger competitors. A survey by American
Express found that 68% of consumers are willing to pay more for products and
services from small businesses that offer better customer service. This highlights
the importance of focusing on the customer experience and building strong
relationships with customers to differentiate from larger competitors
Another advantage of small businesses is their agility and adaptability. Smaller
companies are often able to pivot and respond quickly to changing market
conditions, which can be challenging for larger competitors due to their size and
bureaucracy.

while small companies face many challenges in competing with larger rivals, they
have many advantages and opportunities to succeed. By focusing on niche markets,
leveraging technology, building strong partnerships, and emphasizing customer
service, quality, and innovation, small companies can carve out a successful and
profitable niche in today's competitive business landscape.

Practical application and relating concepts with real world and conclusion:

The concept of small companies competing with larger rivals has real-world
implications, and there are several practical applications that businesses can utilize
to succeed in a competitive market.

One important application is to focus on the customer experience and build strong
relationships with customers. Small businesses can leverage their agility and
adaptability to respond quickly to customer needs and preferences, providing
personalized attention and excellent service. This can be achieved through effective
marketing, branding, and customer engagement strategies, such as social media
and email marketing campaigns.

Another application is to differentiate from larger competitors by focusing on niche

markets or providing unique value propositions.
Small businesses can leverage their flexibility and creativity to identify
underserved markets or unique product offerings that larger competitors may
overlook. This can involve developing new products or services, or finding new
ways to deliver existing products to customers.

Furthermore, small businesses can also leverage technology and innovation to gain
a competitive edge. This can involve leveraging data analytics to better understand
customer behavior and preferences , using e-commerce platforms to reach a wider
audience, or implementing new technologies and systems to improve operational
efficiency and reduce costs.

Overall, the concept of small companies competing with larger rivals highlights the
importance of agility, innovation, and customer focus in today's business
landscape. By leveraging these concepts, small businesses can succeed and thrive
in a competitive market, providing value to customers and driving economic
growth.

Real Life Example 1 :

MICROSOFT TEAMS Vs ZOOM

Though both the companies are primarily based on video conferencing, and might
also seem similar to each other, Microsoft Teams has some advantages over Zoom.
Some of the key differences between Microsoft Teams and Zoom are listed as
below:

Platform and Integrations: Microsoft Teams is part of the Microsoft Office 365
suite of productivity tools and is tightly integrated with other Microsoft apps like
SharePoint, OneDrive, and Outlook. Zoom, on the other hand, is a standalone
platform that integrates with a variety of third-party apps.

Features: Microsoft Teams offers a broad range of features, including chat, video
and audio calls, screen sharing, file sharing, and collaboration on Office
documents. Zoom also provides similar features but is more focused on video
conferencing and screen sharing.

User interface: The user interface of Microsoft Teams is designed to be similar to

other Microsoft Office apps, making it easy for users familiar with the Microsoft
ecosystem to navigate. Zoom has a simpler and more intuitive interface that is
easier for new users to get started with.

Security and Privacy: Both Microsoft Teams and Zoom are secure communication
tools that provide end-to-end encryption for data transmission. However, Microsoft
Teams is often preferred by businesses and organizations because of its superior
security features and compliance with regulatory requirements.

Pricing: Microsoft Teams is available as part of the Microsoft Office 365 suite,
which starts at $5/user/month for the Business Basic plan. Zoom has a free basic
plan, but the paid plans start at $14.99/host/month for the Pro plan.

Therefore, Microsoft Teams is a more comprehensive collaboration platform than

Zoom, especially for users who are already using other Microsoft products. Teams
offers a range of advanced collaboration features, enterprise-level security and
compliance, and more customization options than Zoom. However, Zoom may still
be a great choice for users who require advanced video conferencing features, such
as virtual backgrounds and breakout rooms.
A picture is given below which clearly shows that Microsoft teams is still leading
the video conference apps, be it Google Hangout, Meet, Skype, etc. Image
source : ET CIO

CONCLUSION:

Despite Microsoft teams has some features and characteristics better than Zoom,
Zoom is potentially working to compete with Teams by expanding its features set
and integrations. Zoom has implemented several market strategies to compete with
its bigger rival, some of which may include the following :

Adding more collaboration features: Zoom has been steadily adding new features
that allow for more collaboration, such as virtual whiteboards, co-annotation, and
breakout rooms.
Improving security: Zoom has faced criticism for security and privacy issues in the
past, and they have been working to address these concerns by implementing new
security features and protocols.
Expanding integrations: Zoom has been expanding its integrations with other apps
and platforms, such as Salesforce, Dropbox, and Asana, to make it easier for teams
to work together.

Offering more pricing options: Zoom has introduced new pricing tiers to make its
platform more accessible to businesses of all sizes.

Improving user experience: Zoom is constantly updating its user interface and
adding new features to make the platform more user-friendly and intuitive.

Therefore, to conclude, Zoom has been successful in positioning itself as a

userfriendly, accessible, and versatile platform which has helped it compete with
Microsoft teams in the video conferencing market.

REAL LIFE EXAMPLE 2:

One example of an Indian small company that faced rivalry and survived is Amul,
a dairy cooperative based in Gujarat. Amul faced intense competition from larger
dairy companies like Nestle and Britannia, which had a larger market share and
more significant resources.

To compete with larger rivals, Amul adopted several strategies. One of these
strategies was to focus on product quality and innovation. Amul introduced new
products, such as low-fat milk, flavored yogurt, and ready-to-eat snacks, which
helped the company to differentiate itself from larger rivals.
Another strategy adopted by Amul was to focus on cost-effective distribution
channels. Amul established a network of milk collection centers and cooperatives
in rural areas, which helped the company to reduce distribution costs and reach a
wider audience.

Amul also invested in advertising and branding to build brand recognition and
customer loyalty. The company's advertising campaigns, which featured the
popular "Amul girl" mascot, helped to create a strong brand identity and build a
loyal customer base

Overall, Amul's focus on product quality, innovation, cost-effective distribution,

and branding helped the company to compete with larger rivals and survive in a
highly competitive market. Today, Amul is the largest dairy cooperative in India,
with a market share of over 25%, that smaller companies can indeed survive and
thrive in the face of intense rivalry from larger competitors.

Conclusion:

In conclusion, Amul's success story is an excellent example of how a small

company can compete with larger rivals and succeed in a highly competitive
market. By focusing on product quality, innovation, cost-effective distribution, and
branding, Amul was able to differentiate itself from larger competitors and build a
loyal customer base.

Smaller companies in India and around the world can learn from Amul's success
and adopt similar strategies to compete with larger rivals. While it may be
challenging for small companies to compete with larger competitors, with the right
strategy and a focus on customer needs, small companies can thrive and succeed in
today's highly competitive business environment.

Smaller companies can compete with larger rivals by adopting different strategies.
By focusing on niche markets, innovating, providing excellent customer service,
targeted marketing, and forming strategic partnerships, smaller companies can
differentiate themselves from larger competitors and gain a competitive advantage.

While it may be challenging for smaller companies to compete with larger rivals,
these strategies can help them succeed in the highly competitive business
environment. With the right strategy and a clear understanding of their target
audience, smaller companies can thrive and grow despite the rivalry of larger
competitors.

THANK YOU