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Hello students, here is a question.
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What risks do small firms face when partnering with a large successful company? what risks do large companies take when they relay on small firms as a source of innovation? so, this is our question.
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Let us discuss the answer for this.
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The first will be small firms.
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So, they face several risks when partnering with large successful companies which includes loss of control.
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Small firm may lose the control over their product, services or intellectual property when partnering with a large company.
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So, the large company may have more influence decision making which could lead to the small firm idea being overshared and discredited.
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And then dependence.
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So, small firm may become overly dependent on the large company of resources, funding or access of a market.
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This dependence could make it difficult for the small firm to grow independently or pursue other partnership.
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Next is reputation risk.
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So, if the large company faces any negative publicity or a legal issue, the small firm reputation may be affected by the association.
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And then unequal benefits.
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So, the large company may rep on more significant benefits from the partnership such as increased market share, access to a new technology while the small firm may not see as much as grow a benefit.
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And the fifth is loss of identity.
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So, the small firm may lose their unique identity or a culture when partnering with the large companies.
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Then now we will move on to the relay on the small firm on the sources of innovations.
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The next topic is when relaying on small firms...