ple, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impaIn the story of David and Goliath, young David challenged the mighty Goliath. King Saul wanted David to wear his armour so that he could fight Goliath in the traditional way. But David chose to forgo the armour, used a weapon of his choosing, and relied on his own speed, and was ultimately successful in slaying the giant Goliath.

Small business owners viewing the Goliaths of their industry slugging it out using all the marketing weaponry in their well stocked armoury, can be daunted by the battles raging around them. And if they choose to fight them with the same weapons, they have much to fear. For large businesses, economies of scale is their most potent weapon. A very powerful weapon. But like Goliath, their strengths are also their weaknesses.

Relationships

The biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small business, this means that relationships are the key. It is the flexibility to do the little bit extra without having to go back to head office for approval. It is the continuity of the relationship between a business and its customer, and the ability to customise its service.

Using the banks as an example, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impa

e giant Goliath.

Small business owners viewing the Goliaths of their industry slugging it out using all the marketing weaponry in their well stocked armoury, can be daunted by the battles raging around them. And if they choose to fight them with the same weapons, they have much to fear. For large businesses, economies of scale is their most potent weapon. A very powerful weapon. But like Goliath, their strengths are also their weaknesses.

Relationships

The biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small business, this means that relationships are the key. It is the flexibility to do the little bit extra without having to go back to head office for approval. It is the continuity of the relationship between a business and its customer, and the ability to customise its service.

Using the banks as an example, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impa

economies of scale is their most potent weapon. A very powerful weapon. But like Goliath, their strengths are also their weaknesses.

Relationships

The biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small business, this means that relationships are the key. It is the flexibility to do the little bit extra without having to go back to head office for approval. It is the continuity of the relationship between a business and its customer, and the ability to customise its service.

Using the banks as an example, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impa

small business, this means that relationships are the key. It is the flexibility to do the little bit extra without having to go back to head office for approval. It is the continuity of the relationship between a business and its customer, and the ability to customise its service.

Using the banks as an example, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impa

ple, we have seen a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impact on individual relationships with their customers. While local staff do their best to nurture their relationships, their authority is limited, and they do not stay as long as staff do in a small business. In the end, all their customer relationships, except with their very largest clients, become transactional. While computer systems can help ‘personalise’ these relationships, it is a relationship with a system rather than a person. When mistakes happen- and they are inevitable in all systems created by humans, they tend to be very difficult to rectify as any human relationship can be spread over many individuals. And it is impossible to talk to the boss to sort things out.

One Size Fits All

As Goliaths depend on volume, they must target as large a segment of the market as possible. Hence the need for one size to fit all. They are unable to survive in a niche as no niche is large enough to pay for the overheads. For a business David, finding the right niche and tailoring services for those customers in a way that is impossible for Goliaths, is a way to take their customers away from them.

Price

Small businesses in competition focus all too often on price, which is one of the Goliaths biggest weapons, through econom