Why compete with large companies whose earnings are a good thing?

Large companies earned more likely to be difficult for small businesses to compete with. Large companies have everything money brand existing customers online media distribution expert market analyst features of office products, including how businesses underway.

Davis started Goliath with a clear goal "flow of profits is the detention. This is a port for small business can overcome. Large companies that have huge profits flow not looking quite useful in the small business that just caught start ".

This means that the market is always hungry for innovation. To start a new business with a new cost structure, new technology, and new ideas can compete with the best quality products 1/2, 1/4 or even 1/10 and began to expand and strengthen.

But there's one thing they think. Large companies that can earn much smaller company cut prices to beat the competitors, right?

The thinking is wrong, and large companies earned more is a company that is at the top and enjoy the flow of money income. The goal of the company is to protect the flow of revenue in all forms even abandoned their inventions.

The assessment of the company is based on continued growth in revenue and profit, not Grayson because of no new inventions.

You have to remember that a small change in the flow of income can make a big change in profit. Trade with a profit of 20% is in good condition. If they must cut prices 20 percent, you can think of digits of their profits. So if the new business drop 50 or 80 percent of large companies can not chase. In fact, large companies cut prices only 10% is also very difficult.

But one thing to be careful and you need to know. What all this is for you to play or attack only with products that are earning high.

If you compete against products that earn low or loss will reverse the situation. Large companies that earn much of their most network products or other business income, not the sometimes business which is a big loss.

They use online products or businesses that are earning more supply business that is losing. For example Google's search engine, which earned more financial supply Gmail. Amazon's retail business supply AWS AWS and now earning $ 10 billion a year, with 20% of revenue, and it is supplied finance other projects.

Competing for business or attacks on large companies that are losing is the worst strategy because they can use all the influence to resist and did not even bother to cost-oriented business.