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The Upside to Large Competitors

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Sloan Management Review
The article is a preview of forthcoming research by Assistant Professor Neeru Pahari and her colleagues: Large competitors are often viewed as a major threat for startups and small companies; big companies have more financial resources and greater scale, market power and brand awareness than smaller ones. However, our research finds that a smaller brand can actually benefit if consumers can see the competitive threat it faces from a larger organization.