4. All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they: a. are more likely to have organizational slack. b. can launch competitive actions more quickly. c. have more loyal and diverse workforces. d. can wait for larger firms to make mistakes in introducing innovative products.

For example, we can analyze the differences between a small retail store v. Walmart. Walmart has a very complex buying process where producers basically line up to try to get Walmart to sell their products. Who wouldn't, Walmart is simply huuuuuge. But everything at Walmart is planned months and even years before it happens, nothing is spontaneous. In March large retail stores already know what they will sell on holiday season, it is just the way they work. They have several layers of employees and managers until finally the board decides which corporate strategy is best. Obviously it works for them, since they are the largest brick and retailer in the world.

But what happens when something unexpected happens like this world health crisis? Until Walmart is able to react the whole world is gone. On the other hand a small retailer can immediately focus on selling necessities that customers may need to face this health crisis. Small businesses can make important decisions in minutes, there are no endless committees and decision centers that must decide on something and then the board has the final saying.