Second factor is the manufacturing, which pertains to the quality of the raw materials that will be used for the product or service. Market availability is also a very important factor in terms of competition. In some instances, competition can also be in terms of availability, not all products and services can be readily available in the market at all times, and in cases like this end users have to get what is available.Product and service pricing, would actually depend on the current market prices, these prices are more often termed as the standard market prices. Benchmarking of prices actually depends on the economical standing of a specific industry, this is why prices cannot go up or down easily. It also determines the profit against capital and ROI or return of investment for a certain business.There are three main characteristics of a small business (Fuller, p.6). First, it has no market power, meaning to say, that since it has small market share, it will be unable to affect its business environment, national prices or national sales. Second, the owners run the firm in a personalized way, in other words, the people who run the company are the owners themselves and so there is no complex management or organizational structure since the main people who run the firm are the owners themselves. Third, the firm is independent, meaning to say, since the firm is not part of a larger business organization, it is able to make its own independent decisions without taking into consideration an approval from a larger firm.The main objectives of a small business are profit and ownership (Fuller, p.13). Their purpose is to achieve the highest income possible for their company and for a return of investment.
Small vs Big Business Market Competition