Intrapreneurship — the art of harnessing entrepreneurial energy within an existing organization — takes many forms.
It can be implemented at the department level, where a new department or team explores innovative approaches in operations, marketing, IT, etc. It can happen at the division level, where a new product, service or line of business is created within the core company structure. It can even take place at the process level, where internal processes, systems or workflows are redesigned to enhance performance or reduce costs.
Arguably the most challenging is at the subsidiary level, in which an entirely new business unit or subsidiary operates under the parent company's umbrella but has significant independence. This model demands a rare blend of vision and discipline: the intrapreneur must nurture the fledgling unit to success while ensuring it remains true to the parent company’s values, brand and policies.
The stakes are raised even higher when the new subsidiary is located overseas. Imagine a scenario where the parent company is based in the UK, but an intrapreneur is tasked with launching a subsidiary in the U.S. market. The challenge is significantly magnified, owing to the need to understand local markets, adapt to unfamiliar selling styles and navigate cultural differences. At the same time, they must be adaptable, independent, and willing to push back when corporate strategies don’t fit the new market, while embracing setbacks as part of the process of building something sustainable and impactful.
This last scenario is undertaken quite often, and typically the results are less than satisfactory.
Where Many Global Expansions Stumble
The U.S. market can be a tough proving ground for international companies. Even well-established businesses with success in their home countries face unexpected hurdles when expanding into the highly competitive and culturally distinct American landscape. The challenge goes beyond translating marketing materials or adjusting pricing – it requires a deep understanding of local work culture, business expectations and customer behavior.
For instance, the American business environment is often more aggressive and results-driven, with competitiveness and long hours viewed as signs of dedication. In contrast, many other regions emphasize a more measured and relationship-oriented approach, with work-life balance as a priority. These cultural differences can impact how teams are managed, how deals are closed and how long-term partnerships are built.
Launching a subsidiary in a new country is akin to scaling a startup, with the added complexity of aligning with the parent company’s structure. While there may be financial support, branding, and existing products to work with, everything else – from hiring to sales strategies – must be built from the ground up. One of the biggest challenges is defining roles within a small, fast-growing team. In an established company, every employee has a clear function. In a startup-like subsidiary, most employees wear multiple hats. Everyone juggles sales, operations, and marketing, often stepping outside their traditional job descriptions to ensure things get done.
Furthermore, rapid growth brings its own set of problems. Without clear policies in place from the start, companies risk growing without structure, which can lead to chaos further down the line. Processes that work for a five-person team may not work for a 50-person company. Consequently, it’s crucial to anticipate these challenges and implement scalable policies as early as possible.
How to Balance Corporate Identity with Local Market Needs
A major challenge for intrapreneurs setting up shop in a different country is how to balance the parent company’s identity and brand consistency with the need to adapt to the local market. Often, companies expand into the American market by initially positioning the company as a sales arm of its parent entity. However, it soon becomes clear that a direct sales model is necessary for sustainable growth. This requires a shift in strategy – often driven directly from the parent headquarters – as they understood the need to provide localized leadership, sales and support staff to accomplish their vision of U.S. growth grows increasingly apparent.
Navigating this balance requires diplomacy and a willingness to challenge existing corporate norms. Intrapreneurs must be able to say, “This approach may work well in other markets, but our region has its own unique challenges,” and support that perspective with data and experience. Ultimately, it’s about maintaining alignment with the broader vision while concurrently advocating for the flexibility needed to succeed locally.
One of the trickiest aspects of establishing a subsidiary is determining which corporate policies to follow and which to modify. Some processes that work well in Europe may translate effectively to the American market, while others may not. For instance, sales strategies are vastly different between the two nations. In the UK, companies often rely on inbound leads and referrals. In the United States, outbound sales efforts, aggressive lead generation and direct marketing all play a much bigger role. The idea that, "if the phone isn’t ringing, call someone" exemplifies a fundamental difference between the two markets.
Additionally, U.S. labor laws and employment expectations differ. While UK-based companies might emphasize long-term job security and team-oriented culture, U.S. workers generally expect performance-driven incentives and at-will employment. Managing a U.S. team means adjusting expectations around hiring, compensation and performance management.
Technology also plays a crucial role in scaling a foreign subsidiary. The right systems can make a small team function like a larger one, letting companies delay hiring until absolutely necessary. Smart use of technology can streamline operations, improve communication with the parent company and support sales and marketing efforts. In fact, implementing sales enablement tools and refining marketing strategies can be instrumental in helping a new U.S. team operate efficiently without over-hiring. By focusing on strategic hires rather than immediately building out a large sales team, a new subsidiary can grow sustainably while maintaining profitability.
Building a Successful Team for Long-Term Growth
One common thread in launching a new subsidiary or establishing a brand-new business is making the distinction between the “sowers” from the “reapers.” Some team members will be instrumental in laying the foundation, planting seeds through hard work, visionary thinking and relentless commitment. Yet they may not be around to enjoy the full rewards of that success. That’s why it’s crucial to attract people who are driven by the opportunity to build something extraordinary: individuals who embrace the challenge, knowing the road will be tough but able to find meaning in the journey, not just the destination.
The same may apply to you as a leader. You might not be the one to take the company all the way to the mountaintop, but you can take pride in knowing you laid the track for others to follow. A successful launch depends on a team that believes in the mission, understands the long game and takes satisfaction in being part of something greater than themselves.
But even with this mentality, how does a lesser-known brand compete with the big players? The truth is, while a well-known brand name can open doors, most American buyers care more about solutions. Customers want to know: “Does this product or service solve my problem? Is it easy to use? Is it affordable? Will I receive timely support?” This is particularly important when competing against established U.S. brands.
Many potential customers assume that their current software is the only option simply because it’s been around for decades. Overcoming this bias requires a clear value proposition, effective storytelling, and a strong proof-of-concept strategy. One effective approach is to start small – get a foot in the door with a minor project, prove your value, then expand from there. This gradual adoption builds trust and reduces the perceived risk of switching to a lesser-known provider.
It’s Not Easy, But It’s Possible
Though the challenges might seem insurmountable, there are many examples of foreign companies that came to the U.S. shores and created highly successful subsidiaries.
Being an intrapreneur in charge of launching a foreign subsidiary is one of the toughest jobs in business. Striking the right balance between honoring established corporate policies and innovating for a new market is delicate. Lean too heavily on legacy methods, and you risk slowing growth. Push too far toward independence, and you may create misalignment with the broader organization. Success lies in fostering open dialogue, mutual trust and a shared commitment to adapting thoughtfully while staying true to the company’s core values.
