Overview
Large
Large companies can have two substantial advantages.
- Well established brand presence.
- Economies of scale, which can drive down their cost structure.
Small
Smaller firms have one primary advantage over their larger cousins. They can be nimble. Larger firms must have large workforces and therefore the average skill level of their employee must by definition be close to the average skill level present in the market.
Large companies have large infrastructures and complex networks of contracts and business relationships. These entanglements prevent them from bing able to move quickly to capture new markets or oppurtunities.
Large companies are responsible to a large pool of share holders. This limits their ability to think and act quickly. Shareholders will likely limit the company's ability to take risks.
Small companies are not subject to these concerns, and therefore can be more nimble and higher skilled.