BUSN624 Week 5 Discussion

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American Public University *

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624

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Business

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Jan 9, 2024

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docx

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Uploaded by BarristerTapirPerson186

Good afternoon fellow classmates and professor, There are many different ways how mom-and-pop shops (small businesses) can succeed when competing against big powerhouses like Wal-Mart or Amazon, and their e-business that goes along with them. The main way for smaller business to do this is by changing the industry through their innovations (McKeown & Durkin, p. 57, 2016). Through innovation, the small business can create new markets to avoid the larger competition companies. However, to accomplish this, the small business must go beyond the demographics of the customer and use digital customer dynamics to establish their digital business strategy for entering the marketplace. This will provide guidance in the way a small business should innovate products and services for their target market segment. Smaller businesses can leverage technology to their advantage for marketing purposes, along with the framework of effectuation. For example, the bird-in-hand principle of effectuation comprises of who you are, who you know, and what you know (McKeown & Durkin, p. 60, 2016). Smaller businesses can impact customers differently than larger businesses. Therefore, smaller businesses can develop stronger relationships with potential customers in their general area or communities and use technology like social media to post event gatherings where they can display their products in services in a way that may be different from something similar offered by a competitor. Additionally, the crazy quilt principle of effectual reasoning can be used to build partnerships from their physical and digital interactions on the product or services they provide and share ideas, opinions, and promote what a small business has to offer (The Five Principles of Effectuation, n.d.). This can be done through using social media platforms, having influencers, or through crowdsourcing for developing innovations. This will provide understanding of the

targeted market segment, what the needs are, and if the small business can help solve any of problems customers may have that can be addressed by their products or services. It is easier for smaller businesses to make changes, as it takes longer to update or make changes happen for larger businesses (Hadfield, 2019). This can relate to the lemonade principle of effectuation where the smaller business can be prepared to adapt when things do no go as planned during an unexpected situation. Having this flexibility and control can be digital managed by incorporating software-as- a-service. These are basically on-demand services for the small business that are easier to modify than in-house services with larger businesses and contributes to reducing potential risks related to the affordable loss principle. Smaller business does not need to consult with a higher authority like a board of directors for certain approval. Thus, they can change their digital proposition, scale the business as it grows, and have a better understanding of their targeted customers. This is how smaller businesses can compete against the larger powerhouses like Wal-Mart and Amazon. References Hadfield, P. (2019, September 30). Council post: How small businesses can compete with big businesses . Forbes. Retrieved March 8, 2023, from https://www.forbes.com/sites/forbesfinancecouncil/2019/09/30/how-small-businesses-can- compete-with-big-businesses/?sh=227484723c61 McKeown, N., & Durkin, M. (2016). The seven principles of digital business strategy . Business Expert Press.

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