| It is a commonly held belief that the "rich get richer and the poor get poorer." If this rule holds true across the board, large retail companies can be expected to continue to expand while small companies will shrink in size and number. Given this trend one might ask, "Can small business, which have depended on close interaction with customers, leverage these relationships vis-a-vis technology to compete successfully against mega-retailers?" This thesis hypothesizes that the world is changing and so is the criteria for success in the business world. Therefore, small businesses can indeed carve out a profitable niche for themselves in today's economy by using technology as an expediter of the co-creation of products with customer input. This thesis employs a comparative case study methodology that is compared to a theoretical framework. The theoretical framework builds heavily on Storper and Salais' "Worlds of Productions." Storper and Salais outline the importance of "the product" on business strategy. Wal-Mart represents the Industrial World case study. As the world's largest retailer, Wal-Mart built an empire on "Always Low Prices." As a result, Wal-Mart's products are generic and known for low quality. In contrast, Bungalow, LLC, the Market World case study, is a small business taking advantage of changing economic conditions. Bungalow has built a successful business by producing fun and fashionable tote bags and storage products. Employing a co-creative strategy, Bungalow uses technology to engage their customers in the actual production process. |
