I still have doubts whether this strategy will work for smaller companies. The examples given were for individuals whose resource being used was time. A company will have a completely different scenario. For one they have limited resources, second they have stakeholders to think of who would be after them if they fail and third, a trail and error strategy might just land them on the wrong side of investors if they fail a bit too often. So why would any company that is not too big want to use this strategy which claims itself that it will be inefficient!!!
i had like to hear what others think abt this
7 comments:
Rafia!
i think you are raising issues regarding cost and strategy.
First of all,if a company is small then it will be a difficult step for it to pick a startegy in which there are more chances of failure.I think it can be a venture for a big comapny but not for a small one.
The examples which we have studied are all about big companies which are capable to bear high risk.
What a small company can do is that it can do innovations,but at a low level so that its shareholders will not be worried plus the company will also make profits.
Moreover if we apply this concept to our country then we will really have to think about cost!!!
Rafia i somewhat agree with hira, wht she said in her first comment. other than that i believe,
when we talk about the small companies. Every thing related to them are small,for instance their resources, market size,scope of their business etc hence small scale strategy.
For example: Strategy that food chain is using is .... food chain small scale pizza maker, is competing with other big pizza makers. they are offering a bit low quality and very low price and home delivery service by using their available resources ( which are less than big players like pizza hut). hence targeting students... such as we are. i believe we can use this model to the lowest level as well which is Individual (as sir discussed)
@SHENAZER
i agree with you!!
small pizza makers are getting customers at low cost by using their limited resources.
i have a question that what would happen with the quality?
I think strategy will be successful if we dont ignore quality.If any new competitor comes to the market and also provide good quality then it will really a challenge for existing ones.
@ rafia
I believe that competing on the edge is not the name of any specific strategy that any firm regardless of its size can apply to succeed in any market place....
but infact it is the ability to excell in tough competion by putting constant neverending effort to trigger everlasting creativity that ultimately leads to success ....
Competing on the edge strategy is for everyone whether he/she is an individual,whether it a small enterprise or even a billion dollar portfolio...
@ hira.
but dont you think so for new small pizza makers, it would be so difficult for them to asure people taht thy are providing good quality at cheap price. I mean it is very difficult to change the mind set of a brand loyal of any product or service..
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