The growth of the unicorn enterprises in China has been growing faster these years. They have used several years of Internet technology to create a business giant that has emerged over the past few decades or even hun dreds of years. However, in the wave of global innovation, unicorns have not only opportunities, but also risks and challenges. In this paper, from the perspectives of factors of production, market demand, technology, government, strategic structure and similar competition, related and supportive industries, the competitive advantages and risks of unicorn enterprises are discussed by using porter’s diamond model, and corresponding Suggestions are provided for the innovative development of unicorn enterprises.
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