Market will always be like a battle ground. Big company will always be a threat, but yet I believe others who are willing to compete can compete too, only if they can provide the public with better options in prices and services and products. Nokia was once a threat to other products like Sagem, Trium, and co, but when Nokia failed to innovate quickly, Samsung, overtook it, paving way for others who thought of producing great quality the public would like at affordable prices than that of Samsung who liberated them.
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You are right, innovation is also a very great way for small businesses to grow.