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Small Start Units (*SSU) are business entities of Western origing with a vantage in technology - small high tech firms who invent and develop an emerging technology. Typical for SSU's is a specific business model with a clear sustainable competitive advantage. To grow and generate sales on a global scale is a high level target. As it is to monopolize the emerging technology and turn it into a disruptive technology over the time.
Despite their small size, SSU's play off a vantage in technology against market competitors right from the start and try to substitute established technologies. Their promising business model is attractive to venture capitalists . Such VC's supply SSU's with needed capital for the get-go. The seed money allows SSU's to set up their headquarter and home market in a well developed Western country. They generate new jobs by employing high-end engineers, marketing professionals and well eduacted managers.
The key components of an SSU: 1. Core competency resides in future technology; 2. Object is to operate on a global scale right from the beginning; 3. High growth orientation based on social and environmental awareness; 4. Modern flexible network consisting of internal and external stakeholders; 5. Fragments mass markets into niches; 6. Technology is built on open source technology; 7. Products are brought to markets rapidly.
Based on George S Yip's idea, such SSU's pursue a global approach. SSU's do not only exploit emerging and lucrative selling markets, but also boost profits more quickly by outsourcing work to emerging markets and lower their overall costs.
SSU's are able to take advantages out of emerging markets as well as of Western markets. The combination of how they do business and how their technology is applied, is likely to create a disruptive technology over the time.
Globalization favors SSU's and enables them to become long-lasting and successful business entities.
*SSU is a term which was created for an MBA thesis in 2006.
See also: youtube; wikipedia
Click here to learn how to develop a global strategy for SSU's - Global Strategy [271 KB]
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