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Small Companies Get Window of Opportunity
Jakob Eriksson
Sweden
(Moderator)
Posts 1097
22 Sep 2011 22:17


EXTERNAL LINK 
There it is argued, that small companies have a better chance to compete in the future against bigger companies.

FPGAs are also mentioned. :=)

Wojtek P
Poland

Posts 1597
23 Sep 2011 08:18


Jakob Eriksson wrote:

EXTERNAL LINK 
  There it is argued, that small companies have a better chance to compete in the future against bigger companies.
 
  FPGAs are also mentioned. :=)

Small companies ALWAYS are better than big ones. The only reason that big ones exist and do well is unequal laws.

Jakob Eriksson
Sweden
(Moderator)
Posts 1097
25 Sep 2011 20:18


True, but the tables are tipping now.  Bigger companies could keep ahead because of Moores law. But power consumption is beginning to interfere with Moores law now.

So smaller companies have more time to innovate on the platforms that exist, instead of being crushed by newer and faster offers by the big companies each 18 months.


Marcel Verdaasdonk
Netherlands

Posts 4045
25 Sep 2011 22:32


it's a better use of resources versus brute forcing a problem. ;)

Chuck T
USA

Posts 728
26 Sep 2011 06:27


You would first have to define what big and small is.
 
  I work for a small company and we don't get as many benefits or opportunites as larger companies.
 
  We would love to go to another state but my boss says we're not big enough as a company even though they stopped telling us how much they made after they made 12 million one year.
 
  We have seen business being taken away from us from larger companies because they can offer a lower price.  Because they are larger, they can pay sales people to live at other fortune 500 companies to steal the sales because smaller companies cannot afford to pay salespeople.
 
  What is 5 percent of a million dollars?  It is 50,000 dollars.  Do you know many sales people who will work for less than that?  Do you know that some companies balk at paying 5 percent for a sales person but they still want someone to go show off products at some of their shows?  Some companies want their products for nothing and they want service on top of that.  So our salespeople have to pay for parking and give service and they are now being asked to work for free which they won't do.
 
  These larger companies also find a way to get involved in our business and legally steal the customers info and they go sell to them directly cutting out the distributor.
 
  And we've sold other people's products from other states.  The seller knows where we're selling it, decides it is profitable, opens up business in our state and cuts us out of the contract once it is over.
 
 

Wojtek P
Poland

Posts 1597
26 Sep 2011 09:26


Jakob Eriksson wrote:

True, but the tables are tipping now.  Bigger companies could keep ahead because of Moores law. But power consumption is beginning to interfere with Moores law now.

PHYSICS already stopped moore law of speed, nearly stopped on logic density but still is some space to get more DRAM density.

As all IT market depended on pushing people useless things in the order of "technology progress" it have to crash harshly. First sign are already visible.

So you are right - innovative things, that are made smart instead of billion transistors have today great oportunity to win.

Matt Hey
USA

Posts 774
27 Sep 2011 07:23


Chuck T wrote:

    We have seen business being taken away from us from larger companies because they can offer a lower price.  Because they are larger, they can pay sales people to live at other fortune 500 companies to steal the sales because smaller companies cannot afford to pay salespeople.

Economies of scale give larger companies a competitive advantage.

Chuck T wrote:

    What is 5 percent of a million dollars?  It is 50,000 dollars.  Do you know many sales people who will work for less than that?  Do you know that some companies balk at paying 5 percent for a sales person but they still want someone to go show off products at some of their shows?  Some companies want their products for nothing and they want service on top of that.  So our salespeople have to pay for parking and give service and they are now being asked to work for free which they won't do.

There are plenty of people here in the Midwest willing to work in sales for $50,000. That is enough to become rich with good financial management and good government management. Try finding people who are willing and capable to do hard physical work for $50,000.

Chuck T wrote:

    These larger companies also find a way to get involved in our business and legally steal the customers info and they go sell to them directly cutting out the distributor.

In our industry, agriculture, the big companies want to sell a semi load minimum and that won't even get you good pricing. We have no minimum which is great for individuals and small OEM companies. It helps that our products are generally more competitive in an inflationary environment. It also helps that we are a manufacturer and custom fabricator that can make a product before you can find the right person to talk to at a big company.

Chuck T wrote:

    And we've sold other people's products from other states.  The seller knows where we're selling it, decides it is profitable, opens up business in our state and cuts us out of the contract once it is over.

The poor economy has made individuals and businesses more cost sensitive. One of the simplest ways to save money is to cut out the middle man. That's not good when it's you but that would be capitalism if we didn't subsidize everything unequally in this country. Bad economies go back to basics where creating or manufacturing a product cheaper and/or better is king. Hopefully, the Natami team is taking the poor global economy into consideration in it's product design choices and sales strategy.


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