What Are Unicorn Companies? Examples and Characteristics

The identification of special groups of companies using the term “unicorn”, however, is a rather new angle when talking about the business language of startup accelerators. But what exactly is meant by a unicorn company?

In this paper, the first objective is to explain what firms defined as “unicorns” are, as well as their characteristics, and the second and most significant objective is to explain the aspect of business administration and management education at ESIC University that contributes to creating such business millionaire companies in particular.

What is a Unicorn Company?

Simply put, a unicorn company is a startup or private firm that is projected to be worth over $1 billion during the venture capital investment. The term “unicorn” was first coined in 2013 by the venture capitalist Aileen Lee, who introduced it  to illustrate that  this is the case of women entrepreneurs, as there are very few companies that women entrepreneurs will venture into and certainly not  such early-stage start-ups.

However, it should be noted that most of these unicorn companies are completely worth the risk, due to the nature and type of their business models, installment, specificity of direction and purpose, level of business development and the potential of interfering into a once-existing market.

A high achievement rate among such enterprises has, however, recently been noted. They have attained this level of status in the shortest time possible. These companies possess several identifiable features, including, among others, improvement in the application of different information communication technologies and the nature of the architecture and business models which allows enterprises to enhance competitiveness and grow rapidly.

Unicorn companies characteristics

Another relevant aspect with respect to unicorn startups is that multiple features can be identified which make such an enterprise stand out from the others. Once these essential features have been identified, it becomes easier to appreciate the success of such firms.

New and Emerging Business Models:

It is interesting to note that most unicorn companies are known for coming up with or completely embracing more novel business models. Old solutions are given new work packages and newer places to be worked out are established. One such case is that instead of hotels providing services, Airbnb allowed residents and sub-renters to earn a little extra money by providing accommodation to tourists. The completion of the trip was introduced by Uber, long  before transportation services were in place. These companies leverage technology in designing more effective, more scalable and more customer-focused business models.

• High growth potential: All these characteristics, and particularly the growth rates, explain what a unicorn is. For this reason, such growth is usually backed by an adequate product-market fit, high-value prospects and business objectives with a broader scope. First preference is often granted to unicorns that are also highly trusted by venture capital investment, which boosts their development and ability to enter new places in record time.
• Strong market position: In most cases, the majority of unicorn companies  have monopolies in the countries in which they operate. A unique value, an impressive brand image, and scope for operation expansion are a mix designed to create such dominance. It is this competitive advantage that sustains their growth while insulating them from competition.

One of the characteristics of the success of unicorn companies is the importance attached to  technology. In most start-up enterprises of this type, more technology is integrated, such as artificial intelligence, blockchain and big data analytics. By tempering these technologies, the unicorns were able to come up with innovative and revolutionary products, as well as industry services.

Instead, focus is confined only to customers: In companies with a unicorn status, it is clear that there is an understanding of the customer and a drive to cater for this need. The most important is user satisfaction and thus enhancements of both products and services within the organization are ongoing. This gives rise to a stronger relationship with the user base and the company’s fan base.

Unicorn Companies examples

In recent years, some companies have reached the unicorn level – which just goes to show what growth and innovation can be done in any industry.

• Airbnb: Founded in 2008, it still has a long way to go but has positioned itself as one of the giants in the hospitality industry by renting out accommodation. It has had a great impact on this industry, by enabling clients  to search for accommodation from owners of unique properties, thus providing a new niche for lodgings other than hotels.
• SpaceX: Another example of groundbreaking US aerospace manufacturer and space transport services company founded by Elon Musk in 2002. It quickly rose to unicorn status by achieving what was once considered impossible: reaching space through a commercial enterprise. SpaceX made history as the first private company to launch a spacecraft into orbit, and subsequently dock with the International Space Station under NASA's Commercial Orbital Transportation Services program. These achievements mark just a few of the milestones that highlight SpaceX’s pioneering role in the future of space exploration.
• ByteDance: The parent company of TikTok, is one of the fastest-growing tech startups in China, often described as a "Chinese enigma" due to its rapid ascent and innovative technologies. The company has established itself as a major contender in the tech industry, leveraging machine learning and artificial intelligence to develop a diverse array of software applications. ByteDance embodies the dynamic nature of unicorn startups, which disrupt existing markets and create new ones, showcasing the limitless potential of companies that redefine industry norms.

To this end, the seemingly endless dimensions of the so-called unicorns that have managed to disrupt the already existing markets and the creation of new markets are all shown as well.

The Role of Business Education in Building Unicorn Companies

Nevertheless, in order to build such a company, it is necessary to have a basic understanding of the roles of business processes and the strategies as well as the willpower to improve the status quo in the industry. The precise institutions will provide programs and courses to help upcoming business owners acquire the required skill sets that are essential for to the business drive of creating unicorn companies.

ESIC University offers a comprehensive Business Administration and Management program, for persons who aspire to  work for or set up a unicorn company. This program helps establish the different pillars of the core areas of finance, marketing, operations and strategic management, which is fundamental in achieving success in the corporate world.

Why Study a Business Administration and Management Programs at ESIC University?

There are multiple independent factors that have led to the relationship of clients with the program, including people who are interested in doing business and taking up leadership positions or become entrepreneurs.

• Syllabus feasibility: The program has a fairly good coverage in terms of its syllabus, which caters for the various areas of management in the different kinds of enterprises that are to be developed and made successful. Students not only learn the business theories, they also become  part of it through different modified practices.
• Knowledgeable and experienced faculty: ESIC University has some of the most knowledgeable faculties with high levels of industry experience. They keep the students active, teaching, informing and mentoring them on aspects that are important in relation to career skills development within the sector.
• Learning by doing: The course focuses on practical learning in which students participate in activities such as internship, projects and case studies. This gives the trainees the opportunity to utilize the acquired skills and knowledge and attain valuable experience, which will be instrumental in their employment opportunities.
• International approach: The business education provided at ESIC University is also appreciated in the international context by allowing students to take part in studies abroad and in international exchanges. Such a geographical reach increases the ability of students to understand various aspects of culture and business that are necessary for their existence in today’s globalized world.
• Active alumni network: The university is known for having alumni of great value with whom the students are able to relate and seek assistance in diverse professions. There are also Business Administration and Management graduates who have  forged their profession in the fields of finance, management consultancy and business activities.

The unicorn is a fully different animal when it comes to business companies in the field. It’s a type of company that has developed in a different method and has rapidly entered the market and disrupted traditional industries. A description of the unique characteristics and presentation of the achievements of unicorn startups is also helpful to would-be entrepreneurs or business managers.

The syllabus of the Business Administration and Management program at ESIC University is very well suited to those who wish to acquire the capabilities required for the creation or operation of these billion-dollar companies. It is also  the most sought-after university for education and hands-on experience in Business Administration and Management courses due to its comprehensive syllabus, qualified teaching staff and practical learning opportunities.