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Reference no. E177
Subject category: Entrepreneurship
Published by:
Stanford Business School (2005)
1 February 2005
21 pages
Data source:
Field research


The case details the challenges facing OuterBay in pursuing an OEM (original equipment manufacturer) deal with a very large and well established technology company, EMC. The case describes both companies'' businesses, the history of their relationship, and the initial discussion surrounding an OEM deal. Looks at the particular issues that surfaced in the ensuing negotiation, including revenue sharing, term limits, exclusivity, and account control. Negotiations dragged on over several months, with the two companies exchanging 14 versions of the letter of intent. OuterBay''s CEO, Michael Howard, wonders whether the deal will make or break the company.


Sales management; Reseller deal; OEM (original equipment manufacturer); Start-up; VAR (value-added reseller); Entrepreneurship

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