Advantages of a small business over a multinational company
The SWOT analysis in large companies can be an easy study object by different consultants. Usually, people know what are their strenghts, whether the equity, the big team, brand, or some other aspects, but also small businesses have certain advantages that could help them in the market competition.
Perhaps, these small companies do not have very complex services like business intelligence, marketing experts, or even the opportunity to small business loans. There are certain things that small business owners can do if they take advantage of their strengths.
What would be some general examples of their strengths
1. Charity and fundraising
Yes, multinational enterprises can make bigger donations than a small one, but large companies have to schedule it in advance. Instead, a small business can decide what type of foundation wants to support at any time. This support also generates the following advantage.
2. Relationship with the community
People may feel much closer to a company where they know the owner. They are aware of whether or not the small business supports a local foundation and therefore creates a bond with certain groups. This can create a special bond with the community and show local commitment.
3. Trust and loyalty
If the small business is already supporting social causes of the city, and people know their social responsibility, then this can create a sense of trust among the community. Certainly, trust is friend of loyalty, therefore this is an appeal to returning customers and to draw the attention of some new ones.
4. Decision making speed
Not having a complex organization with different hierarchies can result in a benefit. We are watching a trend in large companies, that they are choosing for flat hierarchies and the less amount of levels between them so they can easily contact the CEO. Small businesses do not have to climb the corporate ladder to send messages and wait for the response. Information flows faster and is more dynamic.
Having a small, compact organization where it is possible to meet all the colleagues can generate a better relationship and communication. The ideals and values of the small business owner can be transmitted easily. A company with strong values is more likely to be appreciated by consumers. Surely a multinational performs various activities to convey certain principles, but in a compact group will create a stronger sense of belonging.