Profitable Small Business Strategies under Different Types of Competition

Radha Chaganti, Rajeswararao Chaganti and Vijay Mahajan

Entrepreneurship Theory and Practice, 1989, vol. 13, issue 3, 21-36

Abstract: This study empirically examines the profit impact of different strategies under four different types of competition: 1. Low-intensity price and promotion competition; 2. Price competition; 3. Promotion competition; and 4. High-intensity price and promotion competition. The study finds that broad product scope is a key determinant of a firm's profitability in low-intensity price and promotion competition, price competition, and high-intensity price and promotion competition. However, under promotion competition, quality-image orientation was the most profitable strategy.

Date: 1989
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:13:y:1989:i:3:p:21-36

DOI: 10.1177/104225878901300304

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