Serial Start-up: the new low cost retail trend

Great Companies and Group of Companies are using the Innovation since decades for maintaining a steady growth and consolidating its market positioning. The cost of investing in continuos innovation has certainly privileged large groups but today the technology is not longer the only succesful determinant variable.

The evolution of the competitive business environment, accelerated by the continuing economic and financial crisis, requires Small and Medium-sized Enterprises to face new strategic challenges linked in particular to the changing behavior of consumers who are increasingly aware of intangible content such as creativity, design and sustainability by seeking new meanings and experiences.

Consolidated companies will have to start business start-ups on a serial basis for the inability to predict which business model will prove to be winning. To compete in the global value chain management those companies will have to create serial business start-ups.

Business Start-ups are the new protected entrepreneurships incubated under the umbrella of a consolidated company but with independency. The protection will allow these start-ups to exploit the resources of this consolidated companies, primarily the knowledge, while contributing to increasing it. The knowledge is a resource at a very low marginal cost of use and the independence will also enable to develop new business models starting from the recognition of socio-economic trends that will be incorporated into future products, services or offers.

Strategically this path help avoiding the common lockin enterprises factors such as the investments, the skills and the internal resistance to the changes. Consolidated companies will have to start business start-ups on a serial basis for the inability to predict which business model will prove to be winning. Once identified as a promising business, they will need to internalize it to ensure their development with proven managerial skills and capabilities.

As a great trend example regarding this serial start-ups applied to the F&B businesses, the Fast Casual Food trend is the most advanced used as the key for competing by following in parallel the technological evolution and the unstoppable globalization.

Not only F&B consolidated companies are moving to invest in this trend. Indeed also companies coming from sectors such as industry, publishing and technology are approaching it especially now that we’ve reached an evolution of low cost (with less than € 200.000) concepts contextualized within the core business theme of the consolidated companies.

The overall objective of this investment is the national and international replication in order to marginalize and generate cross-visibility of new and consolidated brands.

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