BrapoTech (A): Building to Scale

Name: BrapoTech (A): Building to Scale (English version)
SKU: EFC-0004-E

Prats, Mª Julia; Sosna, Marc; Darsch, Dave

Product #:EFC-0004-E

Supplier:IESE Publishing

Discipline:Entrepreneurship

Setting:Portugal, 2000-2005

Details:Case (PDF) • 6 pages • 2011-01-12

Subjects:

Product development Competitive strategy Growth strategy Business models Product management Strategy Corporate strategy Entrepreneurship

Geography:

Portugal Europe

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$10.54

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This FocusCase is about a small Portuguese start-up with a young founder directly out of University, which is focused on the rapidly expanding mobile market. The firm is developing innovative mobile solutions which large firms can use to do mobile business with their customers and offer them mobile applications and services (e.g. mobile banking). Within a short period of time, BrapoTech manages to work with the largest Portuguese firms in four different sectors (TelCo, retail, utility, and banking). However, the mobile market is growing so rapidly that more focus is necessary. At the same time, the company wants to further scale and also embark on an international growth strategy. The main strategic questions the CEO has to deal with is if they should take the risk of building only one off-the-shelf product or rather continue to build tailor-made solutions for large clients. In a related matter, if they should continue to grow in all verticals or focus only in one. And if to focus, in which one? Another important decision needs to be taken with regard to financing: should they raise venture capital to finance rapid growth in this exploding market or grow only by own means based on own profits? To complicate matters, the Board and the CEO are not fully aligned which is the best way forward. Multiple crucial decisions regarding the firm¿s (growth) strategy need to be taken quickly in a complex mix of strategic factors, limited resources, emerging trends, and various external influences. (Note: we have disguised the original name of the company in this case A, so that the outcome cannot be found in the Internet. The related video [EV-7] is featuring the company with their real name.)

Learning Objectives

This FocusCase provides the teacher with the opportunity to discuss an array of different strategic options along critical strategic dimensions of a young and innovative non-VC-funded firm which is operating in an emergent and rapidly expanding technology market. The main focus is on deciding on the right strategy to scale locally, but more importantly globally. More specifically, following main issues are addressed by the case: 1. To understand the interplay between fast and significant industry developments and the need for (continuous) focus in rapidly growing industries. 2. To understand how to manage innovative technology products in highly uncertain markets: a) to explore strategic reorientation with regard to products, markets, and clients; b) the challenges of moving to a product-only strategy; c) to explore what it means growing and internationalizing without funding in a high-growth market.