“Why are there both large and small firms in a particular industry”

Introduction:

For my economics coursework I will investigate the reasons behind having large and small firms in a particular industry and how the small firm manages to survive in competition. I will find out how the firms maximize profits in comparison to each other and the number of customers loyal to their chosen firm. Small firms tend to survive by providing friendly staff with professional appearances, the ability to cater for specialized goods with a wide variety of goods and services etc. The best way for me to show how both firms survive, is to relate this into a particular industry. On Banstead high street, there are two firms of the same Pharmaceutical industry, Boots being the large firm and Victoria Chemist being the small firms with this firm being the only chain.

Methodology:

Aims and hypotheses:
· I want to find out how Victoria Chemist survives even though it is fierce competition with Boots. How? To do this I will interview the managers trying...