(10 pages of text)
The founder and chief executive officer of Mobiroo Inc. must make several decisions regarding the future of his mobile application (app) gift card company. Mobiroo had created the first app gift card for Android and Blackberry users ? similar to the iTunes gift card for iPhone users. Over the past two years, the company had experienced phenomenal growth in the business-to-business space, selling a white-labelled app storefront to mobile carriers and handset manufacturers. Recently, the company had focused on moving into the competitive retail gift card space: should Mobiroo enter the world of retail slowly or go full speed ahead, making significant investments in both time and money? With the holiday season for gift-giving approaching, a decision was needed quickly.
This case is best scheduled as a comprehensive case for a general management module in an undergraduate-level introductory business course. The teaching objectives for the case are as follows:
- To expose students to a high-tech start-up company and the risks and challenges in its early years of operation.
- To expose students to strategic decision-making in a small business environment.
- To provide students with the opportunity to analyze a variety of options from both qualitative and quantitative standpoints while focusing on the stability of a business facing rapid growth opportunities.
- To give students practice at quantitative evaluation, including contribution analysis, breakeven and payback calculations, projections and firm valuation.
- To place students in the role of general manager to make recommendations that are best for the business but that may dramatically affect the future and stability of the company.
- To encourage students to make decisions and to justify those decisions based on their analysis.
Information, Media & Telecommunications
Canada, Small, 2012
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