Big Spaceship: Ready to Go Big?

Boris  Groysberg; Michael  Slind

Case | HBS Case Collection | February 2009 (Revised September 2011)

Big Spaceship: Ready to Go Big?

Abstract

Big Spaceship, a digital marketing agency, faced a rather big challenge: How to scale the distinctive culture that was essential to its competitive strategy? Renowned for the cutting-edge websites that it developed to market major Hollywood movies and leading consumer brands, the firm had won numerous awards and garnered considerable attention within the advertising industry. In mid-2008, Big Spaceship remained small (it had fewer than 50 employees) but was poised for significant growth. For founder and CEO Michael Lebowitz, the central challenge was to figure out whether and how the agency could retain its boutique culture while transcending its boutique size. The case begins by briefly outlining Lebowitz's background, along with the history of Big Spaceship since its founding in 2000. Then the case shifts to a discussion of external dynamics: the firm's value proposition, which focused on providing start-to-finish, strategy-driven digital marketing solutions; its interaction with clients; and its relationship with established players in the advertising industry. Next, the case examines the firm's internal dynamics. Here, in addition to describing the culture of Big Spaceship, the case puts special emphasis on the firm's recent shift from a functional structure to a team-based structure. Finally, the case provides an overview of key issues that Lebowitz and his team must consider as they plan for the firm's growth—how to raise capital, how to gauge the optimal size for the company, and how to manage an expanding staff. A major highlight of the case is the inclusion of more than a dozen graphically compelling exhibits, which help to illustrate the firm's value proposition, its innovation-oriented culture, and its evolving organizational design.

Keywords: Entrepreneurship; Innovation and Management; Human Capital; Growth and Development Strategy; Marketing; Organizational Culture; Organizational Design; Groups and Teams; Competitive Strategy; Value Creation;

Format: Print

38 pages

Educators Purchase

Citation:

Groysberg, Boris, and Michael Slind. "Big Spaceship: Ready to Go Big?" Harvard Business School Case 409-047, February 2009. (Revised September 2011.)

Sanctuary Soft CEO Elizabeth Smalley faced increasing pressure from her primary investor to expand operations internationally. If successful, the expansion could enlarge Sanctuary’s customer base and enable the firm to better serve existing clients’ overseas offices. But it was not clear which region had the most favorable labor market and customer opportunity for expansion. Smalley was particularly concerned about finding qualified software programmers abroad. In the past, the California-based firm added staff and expanded its clientele by poaching talent and customers from rivals. This strategy was effective in California, but other regions had more stringent regulations. Given the legal challenges, would poaching work abroad? Where should Sanctuary expand, and how?

Faculty & Research

Big Spaceship: Ready to Go Big?

Abstract

Citation:

About the Author

More from the Author