Small firms can compete effectively in three ways:
- Create customer delight that does not depend on scale.
- Create meaningful differentiation with a focus on the WTP of a group of customers neglected by the dominant platform.
- Serve a small niche of customers.
- Value for employees
Employee satisfaction is the difference between their compensation and their willingness to sell. Firms can improve satisfaction with increased compensation or lowered WTS to make work more attractive. However, there are essential differences between both approaches.