Large corporations, such as Wal-Mart and Home Depot, have been Research Paper - 1

Large corporations, such as Wal-Mart and Home Depot, have been criticized for driving mom-and-pop shops out of business. Is this - Research Paper Example Struggling to keep afloat, many have either sold their businesses, had to drastically change their business model, or have gone out of business altogether. While there may be some validity to the notion that large corporations are slowly causing the demise of small businesses, the American public can be seen as partly to blame for this modern day phenomenon as well. Fair Competition Many wonder if competition in the marketplace should be fair, or whether the business mentality in America should be seen as survival of the fittest where the one with the most customers and the biggest revenue wins. The free enterprise system prides itself on giving the consumer a choice. In addition, the system itself is designed to give anyone a chance of making it big, event if that means a large multinational corporation. To stay afloat, small businesses must adapt to the reality the big corporations are here to stay. There is, however, a way to remain competitive and for a small business to retain i ts place as neighborhood shop. There are current laws guarding against the establishment of monopolies in many Western countries, including the United States, but this does not preclude a given business from becoming so large that is squeezes out smaller competitors unable to keep pace. The reality is such that big businesses have more buying power and are often able to sell goods at a lower price than other businesses of their type, but of a smaller size. The fear, of course, is that once neighborhood shops are driven out of business, then large corporations such as Home Depot and Wal-Mart, will have little incentive to keep their prices low. There is also the feeling across America that the loss of the mom and pop shop will be like losing a part of American culture and its heritage. In order to determine how to save these shops, however, one must first come to a conclusion about what is really causing the small business to become a thing of the past in the first place. While small er businesses are at a comparative disadvantage, many scholars would argue that they could survive if they simply employ a bit more creativity and ingenuity into their business model (Bickle, 2012). Fair competition can be had between big and small business alike. The entrepreneurial mind is not limited by size. The neighborhood shop owner has the same potential to engage in creative marketing and loyalty programs to attract customers as the big business does. In fact, smaller businesses need far fewer customers to remain a viable player in the business world of a community than a large corporation does. As such, if a small business owner can become a bit more creative and enhance the visibility of their product, while providing a service that is superior to that of the big business down the street, the may be able to retain more than enough customers to keep their doors open. In the end, the business that can attract and retain enough customers to satisfy the goals set forth in its business model can position themselves to survive and weather economic storms. Some could argue that big business is in trouble today as well. Due to the large amount of financial and human capital that must be expended to keep a business such as Home Depot and Wal-Mart afloat, an uncertain economy brings about uncertain times for these companies as well. Recent years have seen the demise of such large retailers as Montgomery Wards and