Stealth mode
Encyclopedia
In business, stealth mode is a company's temporary state of secretiveness, usually undertaken in order to avoid alerting competitors to a pending product launch or other business initiative. A stealth product is a product a company develops in secret, and a stealth company is a new company that avoids initial disclosure as to its existence, purpose, products, personnel, funding, brand name, or other important attributes.
often thrive on publicity and open sharing of information. Openness is common to the business culture of Silicon Valley
and other technology centers, with competitors freely exchanging news of discoveries, products under development, and other company news. There is intense media interest in some business sectors, with even relatively small funding rounds covered in specialized press. Public relations
is considered useful to attract interest from talent, customers, and investors, and to promote the careers of the people involved. Additionally, competitors often collaborate on projects, or buy each other's products.
Some companies nevertheless avoid publicity in fields that are ordinarily not secretive. Among the reasons, a small, relatively unfunded company may wish to avoid giving companies with more resources time to develop competing technologies. The very announcement that a larger or better-known company is working on a competing product may dampen interest in the smaller upstart. If the innovative company has no realistic means of protecting its new intellectual property
, it may seek to obtain a "first-mover advantage
" by waiting until the company or its products are ready to sell before they are announced. This gives as long a lead as possible before others may copy its products, distribution channels, brand, or other business advantages. Conversely, companies with a protectable new technology may nevertheless wish to wait until they have filed or obtained a patent
.
that does not disclose its personnel or location. New companies may operate under a temporary "stealth name" that does not disclose its field of business.
To enforce stealthy behavior, companies often require employees to sign nondisclosure agreements, and strictly control who may speak with the media.
Background
Whereas secrecy is the historical norm in many fields of business, start-up companiesStartup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
often thrive on publicity and open sharing of information. Openness is common to the business culture of Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
and other technology centers, with competitors freely exchanging news of discoveries, products under development, and other company news. There is intense media interest in some business sectors, with even relatively small funding rounds covered in specialized press. Public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
is considered useful to attract interest from talent, customers, and investors, and to promote the careers of the people involved. Additionally, competitors often collaborate on projects, or buy each other's products.
Some companies nevertheless avoid publicity in fields that are ordinarily not secretive. Among the reasons, a small, relatively unfunded company may wish to avoid giving companies with more resources time to develop competing technologies. The very announcement that a larger or better-known company is working on a competing product may dampen interest in the smaller upstart. If the innovative company has no realistic means of protecting its new intellectual property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
, it may seek to obtain a "first-mover advantage
First-mover advantage
In marketing, first-mover advantage or FMA is the advantage gained by the initial significant occupant of a market segment. It may be referred to as Technological Leadership. This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able...
" by waiting until the company or its products are ready to sell before they are announced. This gives as long a lead as possible before others may copy its products, distribution channels, brand, or other business advantages. Conversely, companies with a protectable new technology may nevertheless wish to wait until they have filed or obtained a patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
.
Behavior
When an entire company is in stealth mode it may attempt to mislead the public about its true company goals. For example it may give code names to its pending products. It may operate a corporate websiteCorporate website
A corporate website or corporate site is an informational website operated by a business or other private enterprise such as a charity or nonprofit foundation.-Characteristics:...
that does not disclose its personnel or location. New companies may operate under a temporary "stealth name" that does not disclose its field of business.
To enforce stealthy behavior, companies often require employees to sign nondisclosure agreements, and strictly control who may speak with the media.