How to beat your competitors in new product or services?

You may often feel that because you are a small form you have little or no chance to beat your large competitors, especially in introducing a new product or a new service. This is wrong, and very frequently a small firm can win out over its competition. Here’s how.

A small company, where one person or a few people make decisions, has an extremely big advantage in terms of time. Larger companies act slowly, because of a bureaucracy and many levels in the managerial chain of command, when making even simple decisions, while you can operate much more rapidly and efficiently. It is not unusual for a small firm to make a decision in one day that takes a large firm several months or a year or more to make.

Because a smaller form carries a much lower overhead, the break-even point for your introduction of a new product or a new service is much lower than that of a larger firm. Also, because as a smaller firm you can be more efficient, your break-even point can be lower than that of a larger competitor. As a result, many large firms cannot introduce certain new products or services unless the volume is sufficiently large. Alternatively, you are able to introduce products or services to a smaller market. A volume that is tremendously profitable for you may be unprofitable for a larger company.

Many small firms can serve a specific region in their locality and provide much better customer service and a far more effective and efficient promotional effort than can their larger competitors. The small company frequently outsells the larger companies many times over.

Large firms, because of their volume requirements, frequently cannot do custom work. And for the same reason, quality sometimes suffers, This leaves a nice niche for the smaller company than can do custom work with individuals or other companies that desire this type of product or service. Small companies therefore monopolize the custom-made quality markets in their industries. They charge high prices and make huge profit margins because they have developed this market, a market their bigger competitors cannot reach.

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