Topic: For Grade 10B_New
Is the Presence of Giant firm is dangerous for the growth of small firms? Discuss
Time Duration for submitting the Article is
February 11 to 17, 2013
Girls will write against the motion
and
Boys will write in favour of the motion.
God bless you.
Write your opinion here in 500 Words. [10 Marks]
Giant firm is a firm that already has brand image, high market share and already get trust from their consumer in a market. For example in technology market the giant firms are apple, samsung, blackberry and etc. These firms already got their consumer that trusted them to buy their products. Meanwhile, small firm is a new firm or already existing but can't growth in size or any other objectives. So, they keep small and can't grow well because of threaten by giant or large firm until someday these small firm will out of business.
ReplyDeleteGiant firm is like monster for any small firms that have same industry with the giants. They can kick out small firm any time because they can make new barriers that have never been think before for the small firm. Presence of giant firm is very serious in the market moreover if the small and giant sell similar product. Small firm will get nightmares and hard to get out from this kind of thing.
Why small firm will be feel like that because small firm just a new entrants in the market they don't have any market share yet, they don't have enough money to cover any losses if happens, they don't have any trust from consumer yet and they will kicked out easily if giant firms do some action like predatory pricing. For example if there are 2 firms are airplane company, then the giant one knows that there is new airplane company that just want to start their business with low prices and usually new airline just have 2-4 routes, different with giant or big airline that already have hundreds of routes. The giant firm see that this isn't good for their company because if these 2 routes take over by new airlines they will lose their market share. So, the giant airlines will do the same they will cut their prices until lower than the new one, for them it isn't problem if they loss in these 2-4 routes because they still have many other routes that can cover this losses but for small firm they will lose their market share because they can't lower their prices anymore, of they lower their prices they will have losses and can't cover it because they're just new entrants and when they don't have any consumer they will increase their losses and as soon as possible if this still happens they will out of business.
Presence of small firms for giant firms it's just like piece of cake that they can't kick out easily but in the opposite the small firm will try and do anything to survive from the giant firms that give them some barriers. So, small firms could do some action to against the "challenges" or barriers from giant firms. Giant firms are very strong competitor for the new entrants firms or small firms.
Well done Jonathan,
ReplyDeleteWhile writing Economics paper we need to use more of keywords, evidences, empirical examples for the past industrial activities. We should be very specific to the problem discussed.
You have done very good work.
In the economy of every country there is always competition and rivalry between the company and make a lot of strategies used to win this competition. Competition is competition among sellers who are trying to achieve goals such as increasing profits, market share and sales volume by lowering prices, improving products, distribution, and increased promotion of their product. The competition is divided into two non-price competition and price competition. Usually a company that does market competition they have to do with the do price war strategy means competing companies must attract the interest of customers by giving discounts or lower the price of the goods they sell. But if small firms have to fight with the big companies normally they would not be able to win this competition.
ReplyDeleteBenefits for large companies that compete against smaller companies in the market that they can win this competition by using price wars and became a leader in the market. Usually large firms have greater capital than smaller firms. And also they can lower the price to peak at the lowest price and can cover losses after they won the competition and attract customers back to him and they began to raise back the price of their product. If a big company is already became a leader in the market these companies can determine the price of goods in circulation in the market. If the leader is already determine the price of the goods. So any company that also does business in the same goods should follow the price.
But competition could cause smaller companies to break out of that business. Competition occurs between big companies can inhibit the growth of small firms themselves. While small companies have started to grow and began to penetrate a larger market but small companies should be doing the heavy competition against large corporations who studied the same business with small companies. If a small company does not want to follow that there is competition then they should be willing to lose some of their customers or the worst thing that could happen should a small company out of business and turned to other businesses because they can not win the competition. If the big companies are using pricing strategies to win a competition like price wars by lowering prices in the market and should keep doing production to meet market demand. If big companies can do not mean a small company can do that. Small companies usually do not have enough capital to continue production while the competition is underway. When they surrendered to the competition existing small firms to stop production. If they do not get more severe losses.
So the presence of a large corporation in a country can threaten the existence and growth of small enterprises in the country. Because small firms tend to have less capital and usually small companies are not willing to take risks to win the competition with larger companies. As well as small companies usually can not covered all losses as they can lead to price wars and the small companies out of business and selected other businesses or the worst thing that can happen to small companies out of business and bankrupt.
You have done lot of hard work to present your views.
DeleteHere you should mention that how the presence of MNC's is helpful for the smal firm. Its rather provide benefits to the smaller firms by providing them technical assistance for establishing ancillaries. Provide technology and licence as franchise business.
Score 6.5
Giant firms and small firms can be recognized by measuring and comparing from their number of employees, organization, capital employed and market share. Giant firms would have large number or bigger of employees, organization, capital employed, and market share. However, a giant firm may not always have thousands of workers working in a firm as there are two technique of production which are labour intensive and capital intensive. Which labour intensive attend to have more labour and capital intensive have less labour but they have a large quantities of output.
ReplyDeleteGiant firms are dangerous for the growth of the small firms. Why? The reason is that giant firms have larger market share, larger quantity of output, also larger consumer loyalty. Having a larger market share for giant firms are bad for small firms are they don’t stay a chance to stay longer in the market share also by the consumer loyalty it is hard for small firms to make sales through the market.
Smaller firms actually remain small as they have capital problem as they were limited. Also new technology has reduced the scale of production needed and because of their size of market is small. Smaller firms also suffer rising average cost and reduce profits and eventually giant firms will remove small firms that can’t keep up with the prices the giant firms set as giant firms may as well are the price leaders and they can set their prices lower and smaller firms would either make losses or no consumers would buy their product.
Also by doing that, it will remove the small firms out of the market share and giant firm will control the market and monopoly the market. This may as well affect consumers as monopoly firms may set their prices as high as they want. Then again, consumers have less choices as smaller firms are out of the market share, and giant firm would stop to be innovative as no competition are there.
Also, after the giant firms have turned to monopoly it would be hard for new firms to entry the market share as the monopoly firm may prevent the small firm from entering it. These obstacles are called barriers to entry and then divided by two main types which are Natural barriers to entry and Artificial barriers to entry. These barriers to entry will make smaller firm unable to compete with larger firm as giant firm may as well put on their strategies to remove them.
So, the presence of giant firm may threaten the smaller firms and crush them completely. Smaller firms also suffer rising cost and reduce profits which turnout that they can’t keep up with the market. Also if the giant firms have succeeded on crushing the small firm means they crushed their competitors which then turned to become monopoly which then affect consumer satisfaction. Also after monopoly firm came to the market, it is hard for new firms to enter the market as many barriers to entry are there which prevent smaller firm to compete with giant firm.
Good leonardo,
DeleteWe can make our writings better by providing examples, evidences with the help of case studies. Presence of data also helps to improve the quality of article. At the end you can provide he sources as well.
score 7/10
Size of firms are known by judging at the number of consumers, percentage of revenue, shares in the market, and the acknowledgement of the product of customers. Giant firms are more dominant than small in the market because of their successful attempts in producing and selling goods and services. It is also based on experience and the period of time that the business is there. The longer the business is running in the market, the more stronger and dominant the business is. Except if the business is running low on profit which can lead them into gaining loss and bankruptcy.
ReplyDeleteGiant firms are more dominant because they are well-known in public and has gained customer's trust in the quality of their product. They have a longer period of time running the business and has went through ups and downs to fix their weaknesses. With this, a giant firm can win most of the customer in the specific market according to what they are producing.
But because they are being more dominant and collects most of the customers they will outsmart the small firms and customers by increasing their prices and revenues. Small firms can advertise and win the customer's trust slowly as the time goes by with having the same quality of goods and services. Although small firms are considered as new firms with lack of experience, if their products are at the same level of the giant firm's or better, or can win the customer's demand more, they can reach success and can expand the business further more. It takes time to grow a business and by having larger firms out there can be an example for smaller firms to improve their production and sales to achieve higher amount of revenues and consumers. It's not really a thread to the new firms because they usually have a different market with the larger firms. It all comes back to the way a firm sells, produces and maintains the greatness of their product.
In conclusion, the presence of giant firms is not always a threat to the smaller firms. It can be an example for smaller firms to improve and be more dominant in the market. Consumers will also have more choice to decide on because more firms will be there to produce the same goods in a specific market.
well done Jessica,
DeleteYou should how large firms are helpful in the successful growth of small firms with the help of empirical examples around the world, data can be provided in the form of rising growth rate of smaller firms.
score 6.5
Most firms are small,most firms are started small some may grow over time into large national or even ,multinational organization but the ast majority remain small for sound economics reasons .
ReplyDeleteSmall firms is those companies with a small market capitalization ,out perform larger companies.small firms normally owned use corporation or parthnership type,what constitues "small"managing a small firm is nothing like managing at corporate level with hundreds or even thousand of employees.
Giant firm is an economic group consisting of large profit-making corporations especially with regard to their but very profitable enterprise.
Both small or giant firm has advantages and disadvantages of each
The disadvantages of small firms is there is relatively small amount of capital needed to start the new firms banks may not be willing to lend large amount for firms that has just started .Small firms don't have economics of scale,the ability to cut costs by increasing production .Due to limited product range offered by small firms.
The advantages of small firm is entrepreneurs own small firm has motivates to work harder to get more customers and can compete with larger firms in the market .Small firms are good for people who have experience in the field but do not have an adequate amount of resources.
The advantages of large firms is that can enjoy economics of scale ,This occurs when a business grows in size .Can enjoy bulk buying economics ,technical economics ,managerial economics and marketing economics of scale .Large business are able to offer better customers facilities and more variety of products .
The disadvantages of large firms is business may act as monopolies and thus charging prices well above the average cost of production.Large businessses may exploit consumers by convicing them to buy products that produce products cheaply and not always in good condition.
The actual defeat of small firms is not always caused by giant firms may be partly yes ,but if small firms have good strategy ,and work harder to pursue market is likely to be defeated by the giant firm was small likely to be able to compete with giant firms in the market that large .Giant firm also doesn't always create problems for small firms but giant firms can make the owner of small creative firms and creating new ideas and motivating small firms to work harder in order to compete with giant firm .
The inference ,presence of giant firms not always become main causes of failure of small firms in market competition ,because sometimes failure triggered by small firms than in the well must be corrected and not always to blame for the failure of giant firms that experienced by most giant firms.
Good work, need to check your writing in grammer check , will help you to improve your writings.
Deletescore 6.5
There are several ways to measure and comepare the size of firms the firs one is the workers the company , second how they are organized , third how much capital they employ, and the last is market share. The giant firms not always be dangerous to small firms , because..
ReplyDeleteThe big firms can take over the small company , because big company can do this because they all already profitable and they can hire new and modern capital so they can do several intregation or take over for example apple company take over furniture company which is still in size of small firms so apple will share the managerial right with furniture which is can be beneficial to the small furniture firm from loss and bankrupt.
With the appearance of big firms who is produce the same product as the small firms they will be motivated to create something new to their product or to make innovation so they can boost their market share and to get many consumers demand , from that motivation the company can become bigger and bigger , for example like Samsung company’s size is not as big as apple’s but they keep making some innovations to their product so they will get many consumers demand too.
Also giant firms nowadays are capital intensive so they cut many workers job in purpose to reduce their cost and to maximize their profits . So there will be many workers avaible for small firms to hire , because usually small firms is labour intensive , if the small firms use labour intensive they can use the division of labour so their labour can do on the job they best able to do and also they can produce more effectively and efficiently also they can save time in their production because each workers have been devided into their sections of their job so it will be faster , also small firms is still lack of capital so they will not able to pay for expensive capital .
Usually big firms produce the same products , and they are no custom and unique because their producing is large quantity that its impossible to make different and unique display for each product , so there will be some customers will get bored with same product , so the small firm is able to make the different product for each product because their production is in small scale for example apple produce large amount of the same phone , but another small firm making phone and add gold and silver on the phone but only able to produce one unti ten products each year .
So it’s all depends on how they can manage their business well , and how they will create their product so they can attract the consumers demand , because there will be many demands on the interesting and best quality product , because even though the giant firm is threaten the small firm if their product is satisfied enough in society they can able to keep growing even their size is small.
well done Evelyn,
Deleteneed to focus more on the topic, here you have to explain how the big firms are dangerous for the health of small firm, rather they provide help to work.
score 7
Giant firms is a firms that already growth in size such as capital , labours , land , etc. Giant firms is also high in market share and the most important thing is their product already have a brand image on it. Brand is very important in the business , because it can increase the customer loyality. For example , like apple company , people that already used to buy apple product will be going to buy the apple product again if their gagdet is old fashion or broken. Because apple already have a brand that wellknown by people and it satisfy the customers. So brand is very important in the business.
ReplyDeleteGiant firms is like a poison for small firms , because once they exist in the market the small firms will not get any benefit and the small firms is also can’t do anything because small firms still not have enough power to fight against the giant firms. Small firms can compete because small firms is new in the market , so they still don’t have market share and if they have a losses they can’t cover it because they only have less profit.
On the other hand , Giant firms have high market share and if they have a losses in the market they can directly cover it. Because giant firms already have a lot of profit to cover their losses. So small firms can’t win if they want to compete against the giant firms.
Other factors that makes giant firms become very dangerous to the small firms is the number of customers. Because giant firms take all the customers and small firms only get a few customers. Why people choose giant firms more than small firms ? Because giant firms product already have a brand on it and also usually the price is more cheaper than small firms product. It can be cheaper because giant firms have hundreds of suppliers or even more. But small firms maybe only have two or three suppliers. So the giant firms can pick which supplier that give the lowest price , it means that they have a lot of choices. But small firms only have less choices.
The conclution is , presence of giant firms is very dangerous for the small firms. Because small firms can’t win against the giant firms in prices , quality , brand , and many other factors. But presence of giant firms can create a monopoly because the giant firms have no competitor , giant firms already kick all the small firms. So they can set the product in a very high prices and also the customers get a less choices because there is no other option to pick. So the customers will be unsatisfied with this condition. Small firms can’t do anything because of the barriers of the giant firms that makes the small firms cant survive. So the small firms must think a way to pass through the giant firms barriers.
Excellent Richards,
DeleteYou covered all the general point explaining the topic, you need to use example and real life evedences in the suppor of you arguments with data in the light of references.
score 7.5
What determines small business and giant business are size of firms, numbers of employees, affiliation, total output of the firm and their market shares. The advent of the giant firm can’t be always confirmed that the giant businesses are harmful to smaller firms.
ReplyDeleteEverybody knows that giant firms are more advantage over the small one. The advantages enjoyed by the giant firm are too obvious, they can receive a lot of capital, it’s especially when the firm is known to be evolve. Therefore, small firm might be forced to shut down the business because they lose out to compete against the giant firm.
However, the small firms shouldn’t lose sight of the fact that, actually, small firm has the main key advantages over the larger organization. Smaller firm can take control more balance over of their production output and better customer interactions that will increasing the costumers loyalty than the giant firm.
With the presence of giant firm, small firm should be more motivated to compete with larger firm because it will lead them to encouraging their productivity, to drive and upgraded more of their innovation that will attract consumer demand. For example, competitive market, Nikon and Canon company, both of them producing the same goods, one of them is camera, they both competing, indirectly they are motivated each other to become the first.
Also, giant firm will transfer or bring out new technology or other modern equipment to small firm, example, through the Internet, many small firms can now reach suppliers and consumers all over the world. Also, giant firm can merging with small firm, both of them can be benefitted, like vertical integration that occurs between different firms at different stages of production. Large firms and small firm join together, that will complement both of the firms.
Usually, giant firm set prices of their product too high because they have to cover all their cost of production things up and they want to receive and gain more revenue from it. These will advantages to the small firms because small firm set their product in cheaper price than giant firms because their cost of production is lower. Then it will trigger the consumer more, many consumers nowadays prefer in lower price and small firm frequently closer to customer than the big one, customer complaints can be handled faster and on a more personal level, making long-term customer relations easier and more profitable to them.
More important, small firms have the distinct advantage of changing the plan or firm tactics much faster than giant firm. Small firms can bring the product more quickly to market when there are few of people involved in its creation than giant firms that have more people in it and also slowing the process while they are studying and needed approvals from others and indirectly they giving the small firms advantages.
So, the presence of giant firm not always be dangerous to small firms, it might be advantages to the small firms in many factors. Small firm will tend to raise up their productivity and their courageous to compete larger corporations and also they can take benefits from giant firm.
Excellent Christy,
DeleteIn support of you article you give examples like nikon or canon, great to see that you present the examples. Its very important for good writing, writing supportive evidence in the presence of references is considered good.
Very Good. score: 8.5
The size of the firms can be measured by looking at their total employees, capital employed, total output, and global market share. Giant firm is a firm that has large number of employees, capital employed, output and market share. However, some firms are labour intensive and capital intensive. And not all giant firms have large output and market share. Small firms may have large market share, example : There is only one small sports apparel store in a town, it may owns 100% market share of sports apparel in that town. So, it’s not sensible to only measure by looking at one factor. Some firms remain small because the size of the market is small, doesn’t have enough capital to expand, and some owners choose to stay small because they don’t want to be stressful.
ReplyDeleteGiant firm is dangerous for the growth of small firms. First, usually giant firms have larger revenues than small firms. Because giant firms are usually an established company while small firms may be new entrants or firms that can’t grow because of limited access of capital. Giant firms can remove the small firms out of the market by using price competition. They can use predatory pricing to remove the small firms out of the competition. Giant firms will start lowering their prices than the small firms or even lower than the cost to attract the consumers from another firms. Giant firms are not afraid to do that because they can cover their short term loses by using their company’s reserves. After the consumers from small firms start moving to giant firms, it means that the small firms will lose their revenue while they may have to pay their fixed cost such as the rent of the building. Since they lose their revenue, they won’t be able to pay their fixed cost and then the firms are forced to close down. After the small firms are closed down, the giant firms will start rising their price again.
Second, In terms of economies of scale, Giant firms will have less cost of production than small firms because usually giant firms are having large scale of production which will reduce their cost of production. It means that giant firms can keep the price lower than small firms. Third, giant firms usually have high technology machines that will help to produce high quality product. This helps giant firms to win non-price competition with small firms. Because, consumer are more attracted with high quality product with cheap price. This will threaten the small firm’s market share.
Fourth, the other non-price competition is advertising. Since giant firms have more revenues than small firms, giant firms can use advertising because advertising cost is not cheap. By using advertising, giant firms can enhance their brand image, brand awareness and they can give information about the product. This will attract consumers from small firms to start moving to giant firms.
Fifth, some of the small firms are new entrants of the market. Since the giant firms are the important consumers for the supplier. The giant firms can threaten the supplier to not supply any product to the other firms/small firms otherwise the supplier will lose their most important consumer. This will restrict the small firms on their supply of the product.
So, giant firms are dangerous for the growth of small firms because giant firms have more power to compete and they can remove the small firms out of the market.
Charles 10BN
Excellent Charles,
DeleteGood work , you can improve quality of writing tasks by giving evidence around the industry as how large firms are dangerous for a smaller firm. Dont forget to give the reference sources at the end of article. Present empirical evidence in suppor of you arguments.
Well done. Score 8.5.
firms is a unit or entity carrying a portion of the business in an economy,and there can be many firms inside an industry. Based on the knowledge we can measure and compare the size of firms from how many workers they employ, how they are organized, how much capital they employ, and their market share.In this case, we discuss about Giant Firm vs Small firms. Generally,we can't decide accurately about the Giant firms and small firms, example , from the number of employees, if the firms hire less than 50 employees often classed as small, however not all of large firms employ many hundreds or thousands of workers. Because in large firms, they can be capital intensive (more machinery with few workers )and the other type is Labour intensive ( more workers compared with the machinery ).
ReplyDeleteIn the point of favor, it is true there is some possibility that giant firm can be dangerous for the growth of small firms. We all know, when society comparing the Giant firms with small firms, we choose to pick Giant firms because usually they already got the "name" and the quality of the goods and services. we also more confident with the giant firms. It can be disadvantages for small firms, because the sales of giant firms is better than small firms. The translation means, Giant firms will get more revenue,also the profits and will keep developing the firms day by day to get more consumers and also reducing their cost to get maximization profits. Because of this, small firms will irridicated and forced to close, because their sales is in bad rate, so the revenue can't cover the cost of production and become loss to the company.
The presence of Giant firms is dangerous for the growth of small firms is not absolutely right. First, the small firms should try and developing the firms become well known and fight back the giant firms slowly, not give up to easy. Because we can see the gap benefits between the giant firms and smallfirms. In Giant firms, it is hard to organize the very big firms, and we also need many people involves in this giant firm, it meant their cost of wages will be high too. Different with the small firms, there are only a few of people works, so it is easy to supervised and if there is mistake it can be fixed easily, also for the small firms, the owner can meet directly with the consumers so it will be advantages for the small firms, because consumers will be more satisfy and may willing to come to the firms continually. So from this supermacy, the small firms can grow their size and do competition with the giant firms.
so the conclusion is, it is not 100 % the existence of giant firms is dangerous for growth of small firms, maybe it will become the opposite, like the small firms inspired to work harder than before and can expand the firms, and there is also possibility when the giant firms feel threatened slowly, they will ask the small firms to merger, or takeover the small firms. so it is good beginning for small firms to grow easily.
Well done Bella,
DeleteNeed to give supportive evidences from various sources. Present the reference at the end of articles.
score 6.5