Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 25.09.2025
Length: 10 pages
Data source: Field research
Share a link:
https://casecent.re/p/210070
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded start-up or spin-off company. It discusses the genesis and context of Kontor, an internal venture funded by Resmed Inc. Resmed is an S&P 500 MedTech company. At the time of the case, May 2024, Kontor is trying to find its way through turbulent times. Kontor applies Resmed's class-leading comfort and fit technology to the AR/VR space, thus making these devices more comfortable for the user. Kontor has been running for several years and Erika, the case protagonist, is the newly appointed general manager. The current turbulent situation is causing executives to question investment in the internal venture. Erika must deal with many challenges, but the fundamental question is whether Kontor will create the most value for Resmed as an internal venture or whether it should be spun out and in what manner. The case compares five strategic possibilities: 1) spin out the business and run Kontor independently of Resmed with external investors, 2) keep Kontor wholly owned by Resmed but run it off-balance sheet, 3) sell Kontor to a strategic buyer, 4) keep running Kontor internally with operational assistance from Resmed Inc, or 5) wait and see how the venture goes without making a decision in the near term thus preserving all options.
Time period
The events covered by this case took place in 2024.Geographical setting
Region:
Americas
Countries:
United States; Australia
Featured company
Kontor / ResMed
Employees:
11-50
Turnover:
USD Kontor: 1 million / ResMed 1.3 billion
Industry:
Technology
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 25.09.2025
Length: 10 pages
Data source: Field research
About
Abstract
The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded start-up or spin-off company. It discusses the genesis and context of Kontor, an internal venture funded by Resmed Inc. Resmed is an S&P 500 MedTech company. At the time of the case, May 2024, Kontor is trying to find its way through turbulent times. Kontor applies Resmed's class-leading comfort and fit technology to the AR/VR space, thus making these devices more comfortable for the user. Kontor has been running for several years and Erika, the case protagonist, is the newly appointed general manager. The current turbulent situation is causing executives to question investment in the internal venture. Erika must deal with many challenges, but the fundamental question is whether Kontor will create the most value for Resmed as an internal venture or whether it should be spun out and in what manner. The case compares five strategic possibilities: 1) spin out the business and run Kontor independently of Resmed with external investors, 2) keep Kontor wholly owned by Resmed but run it off-balance sheet, 3) sell Kontor to a strategic buyer, 4) keep running Kontor internally with operational assistance from Resmed Inc, or 5) wait and see how the venture goes without making a decision in the near term thus preserving all options.
Settings
Time period
The events covered by this case took place in 2024.Geographical setting
Region:
Americas
Countries:
United States; Australia
Featured company
Kontor / ResMed
Employees:
11-50
Turnover:
USD Kontor: 1 million / ResMed 1.3 billion
Industry:
Technology
Related
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 25.09.2025
Length: 10 pages
Data source: Field research