The leadership of Pitch Global is comprised of Innovation Capital experts. Startups and corporation alike face similar problems. How to define the Going to Market strategy and how to present this to the outside world.
Companies often love the idea to innovate from within, but often culture and other circumstances are contrary to what is required in order to make the projects a success. It is a different mindset that is needed in order to operate as a “startup” within a corporation. Often freedom from standard operating procedures and regulation would be needed but being part of the big corporation might impact the ability to operate like a startup. Often, a good idea that seems to be fitting within the corporate strategy pivots away from a company’s core competency.
In these cases, a “spin-off” is the right strategy. Pitch Global has the right innovation capital to make the spin-out a success
The Walmart Mistake
In 1997 Walmart enterd the German Market place. For all practical purposes this was like a Walmart startup for the German market. After about $1B loss they exited the German market in 2006. Falsely poeple oten assume that America and Europe share similar cultural and political antecedents, and therefore one might naturally assume that an American enterprise would have a better chance of succeeding in Europe than in Asia. But the German smackdown proved that this is not the case. A clear misunderstanding of the target market and the Going-2-Market strategy. In order to enter the market quickly Walmart acquired Wertkauf and Interspar hypermarket but they were not a good fit for Walmart’s product range. Nor did they properly analyze the existing competition, Aldi, Lidl, and Metro. Irronically they ultimately sold the store to the Metro organizaiton.
The Daimler/Chrysler Debacle
With a loss $29B later Daimler Benz divested of Chrysler. Obviously Daimler overestimated the potential of synergies, and prbably the mount of due diligence didn’t give the proper insight. Like in the reverse exmaple of Walmarts failed entry, Daimler faced significant cultural differences, and therefore the entry into the US market was doomed from the start. You had two companies from different countries with different languages and different styles come together yet there were no synergies.
Startups and corporate make these mistakes alike. The impacts differ in the order of magnitudes. Yet many become operations blind to their own business, and often the steps become wishful thinking. This is where outside help such as the Pitch Global experts can make the difference.