Product details

The CEO of a two-year-old start-up must now decide whether to become a technology provider or a service agency. In a time of enormous uncertainty about the viability of various business models for Internet- delivered services and products, Collabrys has survived the Internet bubble burst by partnering with brand name large companies and by responding to market feedback. This case traces the company from its earliest days and its original value proposition through to a point at which the two very different future strategies both appear feasible. Originally funded by venture capital, the company has changed key personnel, experimented with different distribution and partnering schemes, developed some sophisticated intellectual property, and raised a second round of funding. The teaching purpose is to demonstrate the difficulty of growing a company when there is so much uncertainty. Also raises generic issues about the benefits and costs of starting a company based on a technical capability rather than an identified need. Finally, students may gain an appreciation for the way that founders and early employees shape the direction of a company on the basis of their own personal experience, background, and knowledge.