Different types of marketing structure require the business owners to apply various types of pricing strategies. For instance, if a company exists in a monopoly market, then the organization might cost higher price than what the organization needed to cost in a perfect competition market. In monopolistic market structure, the company can determine a price of the product based on the consumer’s approach toward the distinctive feature that they avail, while in duopoly the company needs to ensure that the consumers prefer their product over the competitor through pricing policies too. In such cases, the business organizations tend to use the product price as their competitive advantage. In monopolistic structures, organizations have several competitors, but they sell different products. On the other side, it can be said that many small businesses are perfect competitors to each other. It can be stated that they are operating in duopoly market because no other organizations are as powerful as them.
With the increasing nature of competitiveness of today’s businesses, the small businesses are finding it difficult to sustain themselves. This slit throat nature of the competition has given rise to many strategies that have been adopted by today’s businesses. Hence, it is vital that the small firms that are in existence nowadays take notice of the business environment around them. Business environment refers to the internal and external factors that play a crucial role in influencing the nature of the discussions of a small business. It is interesting to note that both these internal and external factors affect each other and affects the sustainability of a business. The Internal factors refer to various organizational factors in the form of shortage of employees that affects the way in which a business is conducted. The external factors are the total of economic, social and political factors. Small business organizations are the profit motive and are connected directly to the external environment. There exist business organizations that are of varied types in its nature.
The extent to which small businesses achieve the objectives of several stakeholders
A stakeholder is an individual or a business entity that has a direct or indirect interest in the proceedings and processes of business. Stakeholders of a business entity are mainly divided into two parts such as internal and external. The list of speakers also comprises of trade unions and employees of a business organization. Small businesses also have various stakeholders who play a vital role in helping it to achieve several business objectives in the global competitive market. The key players of the small businesses include its customers.
Like other business organizations, the small business customers from the central core of its business activities. The business strategies of the small businesses are based on the preferences of its clients. The communities are in the shape of the employees and consumers of the small businesses. The small businesses should be able to facilitate the several needs of its employees by addressing them in a proper manner.