Open-Plug (A): Surviving a Revenue Blackout in the Mobile Space

Name: Open-Plug (A): Surviving a Revenue Blackout in the Mobile Space (English version)
SKU: EFC-0003-E

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

Product #:EFC-0003-E

Supplier:IESE Publishing

Discipline:Entrepreneurship

Details:Case (PDF) • 2 pages • 2011-02-24

Subjects:

Venture capital Growth strategy Crisis management Innovation Emerging markets Investment management Corporate strategy Business management Economics Entrepreneurship

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This FocusCase is about a young French venture capital-backed technology firm, which grows from inception rapidly to more than 60 employees and has developed a "Windows light" for mass-market mobile handsets. While the whole firm is set up for strong future growth, they suddenly lose more than 80% of their revenues within a very short time, pushing the company into an unexpected crisis. The CEO and senior management team have to map out a new strategy and future for the company, while trying to retain the core knowledge of the firm.

Learning Objectives

This FocusCase illustrates how a young company that is fully focused on rapid growth, suddenly experiences a deep crisis, but has to come back to a sustainable growth path a soon as possible. The case allows for interesting discussions on how to react to a crisis, how to protect the core knowledge of the firm, as well as how to reconfigure and decide on a new strategy in a rapidly changing market space.