Large corporations are so focused on meeting quarterly numbers and have to protect their profit stream at all costs, even if it means foregoing technology. That's where small companies with innovation and new cost structures can compete, as Jason Cohen, a software company founder, points out in a recent insightful blog post,
A nimble startup can charge far less whereas the big company engages in price cutting at its peril. When a large company makes a small change in top line revenue by price cutting that can create huge changes in profitability for the company.
Check out Jason's blog post for more discussion on pricing and cost structure in competing with large corporations.