Some entrepreneurs prefer working within the context of large and well-established companies. If you are interested in the manufacturing industry and after conducting thorough market research, you found out there is a high demand for motorcycles, you can leverage advanced technology, and process automation to mass produce motorcycles. This is typically what a large company business model entails. Major examples of large company businesses are Netflix, Google, and CVS.

Distinguishing Large Company Business Model

There are numerous features that distinguish this entrepreneurship model from other business models, but the main distinction is that instead of creating an entirely new business from zero, it is the process of launching a new business from an already existing business. Other distinctions include:

  • Entrepreneurs under this category focus on addressing the needs of already existing businesses through innovation. One could come up with a new business division or product line.
  • This business model may also entail the acquisition of other companies and new resources or investing in development and research.
  • The entrepreneurs look to target new markets, increasing the parent company’s market coverage.
  • For large company business models to succeed, the investors must maintain growth in the long-term

Challenges Facing Large Company Entrepreneurs

Some of the problems facing large company business models are:

  • The need to anticipate and mitigate obstacles to growth.
  • Promoting the company’s new products or services to create brand awareness.
  • The need to protect the current market share while marketing the new offerings.
  • Failing to meet sustainable scalability. Growing too fast too soon can be a problem.
  • The need to overcome inertia which prevents large companies from responding to and acting on market changes and new technologies faster than competitors.