SME as R&D unit or new market player

The emergence of startups across all industries has been a phenomenon with disruptive implications and various pros and cons. New startups offer a great opportunity for large companies to explore their new ideas and possibilities at a much lower cost than if it were an internal R&D project.

This also presents an opportunity for main market players to stay ahead at the competitive edge and capitalize on a new and unexplored market space. As startups pivot, improve, and adapt their products and services to meet new consumer demands, they can be a great resource for established market players to learn from.

In addition, startups can become the main market players’ competitors if their new ideas are successfully executed or embraced. Startups can provide tailored solutions for specific customer requirements that weren’t available before, leading to happier customers and growth. However, startups also present competition and a low cost alternative to larger players’ existing products, and create a competitive game for those who won’t innovate or adapt quickly enough.

This new and exciting phase is a balancing act for both existing players and startups to innovate, compete, and eventually create a mutually beneficial relationship.

#sustainability #strategy #innovation #adaptability #circulareconomy