BEGIN ARTICLE PREVIEW:
Imagine you’re the owner of a book shop in the 1980s. You do reasonably well based on your expenses. Everything works fine. One day, Barnes and Noble opens a store opposite to yours. Now they are a much bigger brand in the book retail business, especially in the 1980s. Not only do they have a bigger store than your own, they also have greater name recognition.
You decide to lower the prices of your books to attract customers. The Barnes and Nobles brand manager sees your lower prices and offers even greater discounts. Since they are a big company, they can undercut your price without sweating.
Finally, you decide to use your last ploy – marketing. You go to a printing shop and get a thousand flyers published. You paste them all over your locality, reminding your potential customers about your presence.
What does Barnes and Nobles do? After seeing your flyers, Barnes and Noble takes out a front-page newspaper ad. People from across the city flock to their store and your little book shop barely gets anything. After some time, you close up shop. In the 1980s, you were naturally constrained by your resources. However, in 2020, you are not …
END ARTICLE PREVIEW