Product/service
A6 pocket sized books
Market and targeted customers
UK, USA and the English speaking world
Company’s current mission and focus
To develop the company in the book
publishing trade over the next three years.
Table 7.3: Literary Book Publishing
The initial markets are in the UK and America to be followed internationally. Work with partners is finite for international distribution. Once the product is proved LBP will approach international chains such as Marks and Spencer. As a small start-up company they are not ready to sell to Marks and Spencer who
have 6 warehouses and 140 coffee shops in the UK. The large international chain stores will consider the product once it is proven. A contact for London and Cambridge has taken the books to shops that are willing to pay a higher price. The product will sell better in the South East of England and it is hoped that this will be the case with international markets. The company organised a short story competition for authors on its Web site for the winners and runners-up to have their first books published. There are also competitions for poetry and writing for children.
Mobile Phone Security
The Mobile Phone Security (MPS) company is a spinout of the University with limited public support
through the Spinout programme. It was formed in 2004 by the Founder who as an undergraduate
developed a unique patent pending software application which overcomes password protection technology limitations. The application is different to existing mobile security software since it is undetectable. This provides high levels of data security since there is no evidence that data is hidden. Once the application is installed in a mobile phone it creates a second menu for users to store confidential contact information, office documents, pictures or video files. These are safe since there is no trace of the second menu which is not visible in the event of unauthorised use, theft or loss. Since the menu mirrors standard phone functionality it is easy for the user to navigate requiring little effort to learn.
Download free eBooks at bookboon.com
96
Innovation and Small Business: Volume I
Global Start-ups and business development
Since the take up of 3G services has not been as strong as the industry forecast companies are looking for third party content to differentiate between their own and competitors’ service and product offerings. This will result in third party software developers such as MPS to be in a strong position. It is envisaged that the primary route to the OEM market will be through regional licensing agreements with major network operators. Through the pre-installation of the software in phones this will enable users to experience the software application and will allow the encouragement of new potential users through direct marketing by the network operators. In order to encourage new users to adopt the service the try before you buy
approach is a powerful tactic.
The ability to differentiate the network operators’ product offering, for example the incorporation of email facilities and second secure message facilities for secure contacts, will relative to the downloadable version also allow a premium price. End user pricing of the network provider is expected to be in the range of £9 to £12 a year. As well as repeat business for the network operators each time a user upgrades a phone the software application will generate considerable new revenue streams. It is also anticipated that the software, with time phased licence agreements and enhanced product differentiation, will enable network operators to increase their market share through regional exclusivity rights and to further increase revenue. Table 7.4 summarises the profile and background of the company.
Profile and Background - Mobile Phone Security
Brief overview of the firm’s activities, its mission and focus
Industry
Data security industry
Technology
Mobile phone technology
Product/service
Application software
Market and targeted customers
Global
Company’s current mission and focus
To develop the company in the data security
industry over the next three years.
Table 7.4: Mobile Phone Security
Pet Care
The founder started-up as an incorporated company in May 2004, using Spinout programme public
support, with a new product that needed development following considerable research into the market.
When the company was at the early development stage there was a need for a manufacturer. It was
difficult to find early stage support since contacts were reluctant to provide backing and were cautious.
The original idea arose from outside the University from a company formed by the founder in 1986. This produced water beds for pets and a cage system as a holding bay for animals before and after hospital.
Collaborative work originally took place with another University. The bed, for use in animal hospitals, was new on the market and with this product it was the first time the founder had started a company. From the experience of doing this the founder decided to start a company again.
Download free eBooks at bookboon.com
97
Innovation and Small Business: Volume I
Global Start-ups and business development
With the present company the first product is an outside cat cabin, which is being marketed on the
company Web site. This has been developed following the founder’s experience of housing cats while at work. There is a clear demand arising from owners not being able to have a cat flap in a wall, or where the cost to replace a door is prohibitive (@ £800 in some cases). From this the idea for a cat cabin arose.
Table 7.5 summarises the profile and background of the company.
Profile and Background - Pet Care
Brief overview of the firm’s activities, its mission and focus
Industry
Pet products
Technology
Pet care technologies
Product/service
Specialised pet care products – cat house,
pet bed and animal warm mattress.
Market and targeted customers
UK (in the first year) – pet super stores,
multiple retailers, pet shops, privately owned
high street outlets, veterinary surgeries.
Europe (second year).
North American market (third year).
Company’s current mission and focus
Through the development and sale of pet
products the company wil establish itself in
the UK market and progress to the European
and United States markets.
Table 7.5: Pet Care
In the first year the company concentrated on the UK and Irish markets. Since this was a challenge it was decided to concentrate on one product. In the second year the company sold into the European, United States and Chinese markets. The Chinese market is a large window of opportunity since the majority of homes have a cat and therefore there is an immense market. Since the cat house is a unique shape
representing the head of cat at the entrance it looks good. It is therefore functional since the cat head fits into the garden as a piece of furniture and appears as an attractive product to customers on the company Web site. This was taken into account in the overall marketing and e-business strategy.
Download free eBooks at bookboon.com
98
Innovation and Small Business: Volume I
Global Start-ups and business development
Under Grad
Under Grad is a company, which provides a scheme that encourages companies to employ the best
engineering and technology students through the company’s Web site. The co-founders started the
company about seven years ago in January 2003 with public support through the Spinout programme. The idea for the company arose due to the national decline in the number of students gaining employment in the areas of engineering and technology. Following this being recognised as an opportunity in 2002, a limited company was formed in January 2003. Office space was provided at the University spin-off
premises with the help of the Head of the University Commercial Services. The ambition of the founders is to help the University and other universities (like minded organisations and departments) to find industrial employment for their engineering and technology students. The two founders are both employed by the University in the School of Technology and when they formed the company they were the two
directors. Office space, support staff and facilities are provided in the School, as well as the office space at the University spin-off premises. Table 7.6 summarises the profile and background of the company.
Meet one of our people and they’ll ask about you.
Not your resume. Because it’s you, the person, we’re
Real individuality. interested in. After all, it’s a big, diverse world out
there. Tackling global business challenges takes
Unreal togetherness. different viewpoints and fresh thinking. Listening.
Sharing. Debating. It’s all part of the job. All we’re
missing is you. Visit ey.com/internships.
Download free eBooks at bookboon.com
99
Click on the ad to read more
Innovation and Small Business: Volume I
Global Start-ups and business development
Profile and Background - Under Grad
Brief overview of the firm’s activities, its mission and focus
Industry
Employment
Technology
Student employment systems
Product/service
Employment service for companies to employ
engineering and technology students.
Market and targeted customers
Engineering and technology students
Companies
Universities
Company’s current mission and focus
To maintain and consolidate company
activities in the employment of engineering
and technology students over the next five
years.
Table 7.6: Under Grad
The company was developed within the University's School of Technology. The firm places
undergraduate students at a host company while studying part-time for a degree using the Web site. Two days are spent by trainees at the University and the rest of the week at work. Complex systems have been developed to support the scheme, by a franchise centre, through innovative support systems with the award of the ISO 9000:2000 accreditation of the work. Originally work was aimed at higher education institutions in Britain, but following modification overseas colleges and a private European training organisation have become involved. Franchise centres deliver key skills modules at level 1 through to five-year supported programmes. The company provides valuable work experience to students during their university course, with no fees and a bursary up to £9,000. Businesses benefit from motivated
undergraduates studying at university, working with the businesses, and they become competent and
experienced company members. Franchise centres are cost effective. These have been very successful and have helped to reverse trends in declining numbers and entry qualifications for engineering and
technology students. There have also been follow-on efforts such as the retention of students. Through students being more aware of potential debt, and the incentive of a bursary and work experience they are attracted to the scheme.
Conclusions
Since most of the global start-up companies are fairly young they have tended to report early stage development in terms of business growth. It is, therefore, planned to undertake follow-up interviews in future years to develop a longitudinal study to reveal business developments. In order to do this a coherent structure for both the data and the analysis will be essential.
Download free eBooks at bookboon.com
100
Innovation and Small Business: Volume I
Global Start-ups and business development
Recommended Reading
Thomas, B., Brooksbank, D. and Thompson, R. (2009) Optimising the regional infrastructure for higher education global start-ups in Wales, International Journal of Globalisation and Small Business, 3(2), pp.
220-237.
References
Amin, A. (2000) Organisational learning through communities of practice, paper presented at the
Millennium Schumpeter Conference, University of Manchester, Manchester, June/July.
Asheim, B.T., Isaksen, A. (2002) Regional Innovation Systems: The Integration Of Local ‘Sticky’ And Global ‘Ubiquitous’ Knowledge, Journal of Technology Transfer, 27, pp. 77-86.
Autio, E. and Sapienza, H.J. (2000) Comparing process and born global perspectives in the international growth of technology-based new firms, Frontiers of Entrepreneurship Research, Centre for
Entrepreneurial Studies, Babson College, pp. 413-424.
Autio, E., Sapienza, H.J. and Almeida, J.G. (2000) Effects of age at entry, knowledge intensity and imitability on international growth, Academy of Management Journal, 43(5), pp. 090-924.
Bell, J. (1995) The internationalisation of small computer software firms: a further challenge to “stage”
theories, European Journal of Marketing, 29(8), pp. 60-75.
Bristow, G. (2005) Everyone’s a ‘winner’: problematising the discourse of regional competitiveness, Journal of Economic Geography, 5, pp. 285-304.
Brooksbank, D. and Thomas, B. (2000) Assessing the Challenges and Requirements of Higher Education Spinout Enterprises, Detailed interviews with spinout companies, Section 2 WDA Report, 68 pages, August.
Brooksbank, D., Thomas, B., Miller, C. and Thompson, R. (2006) Generic regional support infrastructure schema for global higher education spinout start-ups, GlobalStart project report, IPS2001-41038, June.
Bunnell, T.G. and Coe, N.M. (2001) Spaces and scales of innovation, Progress in Human Geography, 25, pp. 569–589.
Burgel, O. and Murray, G.C. (2000) The international market entry choices of start-yup companies in high-technology industries, Journal of International Marketing, 8(2), pp. 33-62.
Cooke, P. (2001) Strategies for Regional Innovation Systems: Learning Transfer and Applications, UNIDO World Industrial Development Report (WIDR).
Download free eBooks at bookboon.com
101
Innovation and Small Business: Volume I
Global Start-ups and business development
Coviello, N.E. and Munro, H.J. (1995) Growing the entrepreneurial firm: networking for international market development, European Journal of Marketing, 297, pp. 49-61.
Doloreux, D. (2002) What we should know about regional systems of innovation, Technology and Society, 24, pp. 243-263.
Finance Wales (2001) Investing in the future of Wales: Funding and Management Support, Cardiff, financewales.
Freel, M. (2003) Sectoral patterns of small firm innovation, networking and proximity, Research Policy, 32(5), pp. 751-770.
Gertler, M. (2001) Tacit Knowledge and the Economic Geography of Context or the Undefinable
Tacitness of Being (There), paper presented at the Nelson and Winter DRUID Summer Conference, Aalborg, Denmark, June.
Gibbs, D., Jonas, A., Reiner, S. and Spooner, D. (2001) Governance, institutional capacity and
partnerships in local economic development: theoretical issues and empirical evidence from the Humber Sub-region, Transactions of the Institute of British Geography, 26, pp. 103-119.
Harveston, P.D. (2000) Synoptic versus incremental internationalisation: An examination of born global and gradual globalising firms, Unpublished Doctoral Dissertation, The University of Memphis.
Howells, J. (1999) Regional systems of innovation. In D. Archibugi, J.Howells and J.Michie (eds.)
Innovation policy in a global economy, pp. 67-93, Cambridge University Press, Cambridge.
Hospers, G.J. and Beugelsdijk, S. (2002), Regional cluster policies: learning by comparing?, KYKLOS: International Review for Social Sciences, 55(3), pp. 381-402
Knight, G.A. and Cavusgil (1996) The born global firm: a challenge to traditional internationalisation theory. In S.T.Cavusgil and T.K.Madsen (eds.) Export internationalising research – enrichment and challenges, Advances in International Marketing, 8, 11-26, NY: JAI Press Inc.
Lagendijk, A. (2003) Scaling knowledge production: how significant is the region? In M.M.Fischer and J.Frohling, Knowledge, Complexity and Innvoation Systems, Advances in spatial science, Spinger-Verlag, Berlin, pp. 79-100.
Lagendijk, A. and Cornford, J. (2000) Regional institutions and knowledge – tracking new forms of
regional policy, Geoforum, 31, pp. 209-218.
Lawton-Smith, H. Tracey, P. and Clark, G. (2003) European Policy and the Regions: A Review and
Analysis of Tensions, European Planning Studies, 11(7), October.
Download free eBooks at bookboon.com
102
