Final answer:
A small firm can succeed against larger competitors by focusing on niche markets and offering unique products or services.
Step-by-step explanation:
A small firm can succeed against larger competitors by focusing on niche markets. By targeting a specific segment of the market with unique products or services, the small firm can differentiate itself from the larger competitors and attract customers who are looking for specialized offerings. This allows the small firm to compete effectively without having to match the resources and scale of the larger competitors.
For example, a small firm that specializes in handmade, organic skincare products can attract customers who value natural and environmentally-friendly products, even if larger competitors offer a wider range of skincare products at lower prices. By emphasizing its unique selling points and delivering exceptional quality and customer service, the small firm can build a loyal customer base and thrive in its niche market.