as companies grew,why were new types of businesses nedded ?
pertaining to the rise of the big business
Businesses need supplies from other businesses. Car companies, for example, put together thousands of parts made by thousands of other companies.
The growth of companies, specifically the rise of big businesses, can lead to a need for new types of businesses due to several reasons:
1. Diversification: As companies grow, they often seek to expand their operations and diversify their offerings. This can involve entering new markets, introducing new products or services, or expanding into different industries. To achieve this, new types of businesses may be necessary to cater to these expanding needs and opportunities.
2. Specialization: As companies scale up, they may need to focus on their core competencies to maintain efficiency and competitiveness. This can result in the outsourcing of certain functions or processes to specialized businesses that can perform those tasks more effectively or at a lower cost. These specialized businesses may emerge to fill the gap and provide specific services that larger companies require.
3. Innovation: Big businesses may face challenges in terms of agility and adaptability. New types of businesses can emerge to address these concerns by focusing on innovation and disruptive technologies that the larger companies might overlook. These innovative businesses can offer unique solutions, products, or services that cater to emerging market demands.
4. Market Demand: As companies grow, they often expand their customer base to reach new segments. This can create opportunities for new businesses to cater to the specific needs and preferences of these emerging markets. For example, as the demand for eco-friendly products and services grows, new businesses can emerge to fill this niche.
5. Ancillary Services: Big businesses often require support services to function effectively. These support services can include specialized consulting firms, suppliers, logistics companies, marketing agencies, and more. As companies grow, the demand for these ancillary services increases, leading to the creation of new businesses that provide support and complementary services.
In summary, the growth of big businesses can lead to the emergence of new types of businesses for various reasons, including diversification, specialization, innovation, market demand, and the need for ancillary services. These new businesses play a crucial role in supporting and complementing the operations of larger companies as they continue to expand.