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 Originally Posted by Jack Sawyer
Let me try to ELY5
Like I'm 5, or like YOU'RE 5. Based on your explanation, I think your understanding of business is on a kindergarten level.
You have big business, you have small business. By their very nature, it’s easier to set up a small business rather than bigger businesses.
Ok. You just said that. I agree. However, everything you say after this, seems to ignore this fact. It's easier to set up small businesses. Keep this in mind as we move on.
Big business will inevitably render small business obsolete.
False. This presumes that ONLY a large business built on efficiency, variety, and low costs can satisfy the needs of consumers. What about quality, relationships, personal service? Do people care about those things? If so, then the small business will never be obsolete. If not, then why are small businesses worth protecting?
Because it can offer more stuff, probably cheaper because of mass production, etc, to compete. Yet it is also in a particular position to make the barrier of entry, as in how to get in the market, higher (more difficult) for up and comers.
False, we just got through agreeing that small business are easier to set up than big ones.
Through legislation and other forms of law-making, bribes, strong-arming/bullying, etc.
You make it sound like the big corporations can just buy the government. I realize sometimes it seems that way, and I'm sure if you tried you could find me lots of anecdotal evidence. But it's nowhere near the extremes you seem to believe it is. Small businesses are not alone in the fight. They can participate in, and share the resources of, all sorts of larger entities that can help them level the playing field. Bank of America isn't the only bank in the world you know. There are thousands of small, local banks in communities nationwide. Are they loaning money to Amazon, wal-mart, or verizon? Probably not. They're probably supporting local businesses.
Are there such a thing as trade organizations? Is it impossible for a small business to work with a lobbying group? Does virtually every town have a local chamber of commerce? Better Business Bureau? What about the Small Business Administration and it's offices in all 50 states?
Dude you make it sound like small businesses are hung out to dry. They aren't. I think you need to open your mind to the possibility that alot of small businesses fail simply because alot of them are started. Additionally, alot of them are started by idiots. Don't go blaming wal-mart for every boarded up storefront you see.
Now going into details by providing an example:
Thank you for helping me to illustrate your ignorance.
A mom n pop video store would never have been able to compete with a Netflix/Amazon-esque competitor
So?
It was doomed to fail from the start.
Then why should we sympathize with someone who set out on a doomed quest in the first place?
It sounds cliché but it is: technology fucked them out of existence.
Technology changed the business landscape. "Fucked them out of existence" is a real stretch.
Once the Pandora’s Box containing digital video (xvid/mkv/mp4 etc) was opened, it killed off DVD.......You used to be able to just buy the disc, and then rent it out to your customers. But now, it’s not as easy anymore.
I'll repeat my original question. Why do you think the video store owner is entitled to life-long market-share?
So it’s not easy to replicate, to come up with, a competitor to Amazon, Netflix, etc. You need a lot of resources to get started.
Why are you asserting that any business or industry should be easy to replicate?
This explains why mom n pop video shops have gone the way of the plesiosaur;
I just want to recap here and make sure that I understand your point.... It is your assertion that mom and pop video stores are becoming extinct because large corporations have muscled in on their market with services that mom and pop can't replicate.
How are you totally ignoring the changing needs of consumers in your analysis? Why are mom and pop entitled to continue to offer inferior services without the threat of outside competition?
You know what I see a lot of now...cupcake shops. I see small boutique bakeries offering a variety of flavored and decorated personal sized pastries at head-scratching prices. However, long before there was a cupcake shop on every corner, there were grocery chains and super stores like wal-mart with very large bakery departments. They have sheet cakes, enough to feed 30 people, ready to go. They have high efficiency baking equipment that allows them to make huge volumes of cake at incredibly low prices. They can sell 4 packs of cupcakes for the same price as one cake at a boutique. They'll even decorate it how you want.
And despite those conditions, the mom and pop cupcake store emerged, and is thriving. I think its because people are becoming a little more health and fitness conscious, and exercising a little more control. In other words, people don't want a 24 pack of brownies for 2.99. They'd rather pay 5.99 for a single pastry. Why? Portion control? It's more of a "treat"? Personal connection to the proprietor? Quality of ingredients? Flavor? It's probably all of those things. Those are all things that can't be replicated by you're typical monolithic corporate baking interest.
Let me ask you this.....exactly which evil, faceless, corporate machine squashed the ash-tray industry? 50 years ago there were a lot of manufacturing companies, retail outlets, and skilled craftsmen making a living selling decorative and functional cigarette ash receptacles. Now, they're incredibly less common. So, how exactly did they get "fucked out of existence"?
What you're missing here, is that mom and pop's skill set doesn't necessarily have to do with video rentals. Their skill set is retail. If they are in a convenient location with lots of traffic, if they have strong relationships with the community, if they offer products that people want to buy at prices they are willing to pay, then they are fine. If technology changes such that people don't want video rentals anymore, that doesn't stop mom and pop from using their retail expertise and networks in the community to simply switch to cupcakes, or washing machines, or custom engraved toothbrushes.
The idea that mom and pop business owners should not have to embrace changing economic conditions and react to changes in consumers needs is CRAZY. If they are unable to do those things, then they really don't deserve to be in business in the first place. And I'm not sorry that Netflix "fucked them out of existence".
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