Start-ups possess knowledge and perspectives that established corporations often lack. They see opportunities in gaps left by larger companies, capitalising on the giants’ inability to innovate rapidly. Their nimbleness and agility allow them to pivot quickly, seizing opportunities and adapting to market changes.
In contrast, established companies often struggle with innovation due to their size and complexity. Their processes, policies, and structures can inhibit creativity and slow down decision-making. They tend to focus on protecting their existing market share rather than seeking new opportunities.
Start-ups also have the advantage of a fresh perspective. They aren’t weighed down by legacy systems, outdated business models, or institutional inertia. This allows them to think outside the box and come up with disruptive ideas.
However, start-ups face their own challenges. They often lack resources and struggle to scale up. They also face the risk of failure, with many start-ups not making it past the first few years.
To maximise their chances of success, start-ups need to leverage their strengths, such as their agility and fresh perspective, while also learning from the experience and resources of established companies. Conversely, larger companies can benefit from adopting a start-up mindset, focusing on innovation and agility rather than just protecting their existing market share.
Go to source article: http://research.gigaom.com/2014/01/startups-know-what-giants-dont/