Extended Rivalry and Competitive Advantage in the New Small Firm

Lowell R Jacobsen, Gavin Reid and Margo E Anderson

CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: The strategic behaviour and growth of the new small firm is analysed using field work evidence. An assesment of extended rivalry, embracing suppliers, substitutes and customers, is undertaken to 'flesh-out' the appraisal of competitive advantage. Firms are grouped by low, medium and high concentration markets. In the low concentration cases, firms had struggled in imperfectly competitive, atomistic markets to achieve limited competitive advantage through product differentiation. In the medium concentration cases, firms were better placed to achieve competitive advantage by being niche players in a secure competitive fringe. In the high concentration cases, firms looked to achieve appreciable competitive advantage by targeting segments within exclusive and highly profitable markets. In no case was the outcome of the strategy adopted inevitable.

Keywords: competition; new small firm; suppliers; substitutes; customers (search for similar items in EconPapers)
Date: 1992-10
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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:9215

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