Managing Networked Businesses: Summary Module

Thomas R. Eisenmann

Module Note | July 2007 (Revised September 2007)

Managing Networked Businesses: Summary Module

Abstract

Offers pedagogical guidance for instructors teaching the summary module of Managing Networked Businesses, an elective course described in "Managing Networked Businesses: Course Overview for Educators." Also describes how the module materials can be adapted for use in an existing course on strategy, marketing, entrepreneurship, technology management, information systems, economics, or e-commerce. Materials include Akamai Technologies (804-158) and a teaching note (808-024); Atheros Communications (806-093) and a teaching note (807-174); and PayPal Merchant Services (806-188) and a teaching note (808-031).

Keywords: Networks; Business Organization;

Format: Print

15 pages

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Citation:

Eisenmann, Thomas R. "Managing Networked Businesses: Summary Module." Harvard Business School Module Note 808-003, July 2007. (Revised September 2007.)

Aereo aimed to disrupt television program distribution by providing consumers access to local broadcast TV programming using offsite antennas, cloud-based DVRs, and an Internet connection. With Aereo, consumers could “cut the cord” and avoid the high cost of a cable TV subscription. Soon after launching service in NYC in 2012, Aereo was sued by broadcasters, who asserted that the startup was distributing their programs without permission — and without paying retransmission fees. After Federal District and Appeals Court victories for Aereo, the U.S. Supreme Court ruled against the startup in 2013, and it was shut down, after investing $97 million. The case looks at Aereo's journey and offers reflections from founder/CEO Chet Kanojia.

The case provides students an opportunity to examine the founding of an e-commerce startup that used storytelling and compelling images to sell furniture and home accessories to millennials. The case describes the rapid sales growth the company experienced, as well as the challenges it faced with operations, delivery, and order tracking. Finally, the protagonist is poised to raise a Series C financing he hopes will value the company at $200 million.

The case describes the final year of the once-promising furniture e-tailer, Dot & Bo, that included a challenging fundraising market, troubles with logistics and operations, and a team tragedy. The founder looks back at the experience and shares his learnings about selecting a business model, financing, people issues, company culture, and operations. Finally, he looks ahead at his career and contemplates his next steps.

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Managing Networked Businesses: Summary Module

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