BlackRock (A): Selling the Systems?

Ranjay  Gulati; Jan W. Rivkin; Kelly  McNamara

Case | HBS Case Collection | October 2016 (Revised January 2018)

BlackRock (A): Selling the Systems?

by Ranjay Gulati, Jan W. Rivkin and Kelly McNamara

Abstract

As the case opens in 1999, several key leaders at BlackRock, Inc., then a relatively small asset management firm, are trying to convince CEO Larry Fink and others that the firm should begin to offer Aladdin—its proprietary analytics and trading platform—to other asset managers. While some members of the senior team see “selling our systems” as an opportunity, others liken it to “selling weapons to the enemy” or “giving away the crown jewels.” What should Fink do? The case provides an overview of the asset management industry, the beginnings of BlackRock, and details around the Aladdin platform.

Keywords: Strategy; Competition; Technology; Asset Management; Competitive Strategy; Financial Services Industry; United States;

Language: English

Format: Print

9 pages

Educators Purchase

Citation:

Gulati, Ranjay, Jan W. Rivkin, and Kelly McNamara. "BlackRock (A): Selling the Systems?" Harvard Business School Case 717-404, October 2016. (Revised January 2018.)

Why do some startups that have crossed the threshold of “product-market fit” and have a viable business model still fail? This article begins by exploring the argument that most startups need more professionalization to thrive. Founders resist putting in place structures and systems as they grow and that eventually leads to organizational chaos and, ultimately, failure. But it then departs from this conventional view and explores the idea that while on the one hand too little structure in a high growth venture can lead to chaos, going too far on the other extreme with too much structure can also be equally detrimental and kill the soul of the startup. The article concludes by summarizing some ideas for startup founders on how they can learn the mechanics of scaling up effectively before they reach a point where they tip over too far in one direction or the other. In an attempt to better understand this problem, the authors conducted a closed-group discussion with professionals, investors, and founders operating in various segments of the Indian startup ecosystem on which this article is based.

Faculty & Research

BlackRock (A): Selling the Systems?

Abstract

Citation:

About the Authors

More from these Authors

Faculty & Research

BlackRock (A): Selling the Systems?

Abstract

Citation:

Related Work

About the Authors

More from these Authors