BIG SPACESHIP CASE STUDY

ANJANI MANURI

ABHIROOP SEN

SAAJAN JOHNSON

CHHAYANATH PAVALURI

BACKGROUND Big Spaceship – a digital marketing company, is a very

renowned company in its field based in Brooklyn. Its founder and CEO is Micheal Lebowitz It has an enviable client list and has won several high profile

awards. It is a relatively small firm with annual revenues less than 10

million. Its USP is that it believes in providing innovative solutions to

its clients that help them in their strategic growth exploiting digital capabilities rather than just selling a product.

This case investigates whether it should scale up its operations in order meet the ever increasing demand as they have to turn down almost 80% of their clients.

CASE QUESTIONS & CLAIM• What do you think BSS should do, grow its operations or

not? • If yes why? • If no why? • If yes - then how do you think they should grow?

• We feel that Big Spaceship should not scale up its Operations.

REASONS• It caters to niche clients. In fact due to its initial success, it is

in an enviable position to choose its clients and it chooses clients who understand their need to provide unique creative solutions and also who are open to a strategic engagement.

• They do not need to cater to all the offers they cannot cater to since all their clients are not in need of a strategic solution.

• The boutique culture, they have which they claim breeds creativity. They do not want to grow for the sake of growing since unmanaged growth could kill their creative streak.

REASONS (contd..)

• The strength of Big Spaceship is in its size-small. It is a kind of place where everyone knows everyone and the vibrant collaborative spirit that is possible only in small offices. Everyone is a specialist and there are no barriers between departments. A bigger size would compromise these qualities and dilute the quality of work.

EVIDENCE• The fact that they cater to niche clients is evidenced by

the Nike-Air project it did. Nike was open to a strategic engagement and were very impressed by the way Big Spaceship handled the project. The HBO voyeur project shaped up very differently from what the clients had in mind.

• 80% of the clients that are filtered want digital solutions that are not creative in nature. Many of them want a similar kind product as Big Spaceship had done in the past. Many did not want a strategic involvement.

EVIDENCE (contd..)• The boutique culture breeds creativity and that unmanaged

growth could kill their creativity is mentioned in the Big Spaceship Value Proposition under the “Cautious Growth” section.

• The strength of Big Spaceship is in is small team is evidenced by Lebowitz’ quote that ”I can probably have this place with a headcount of 75 and be happy. I wouldn’t want to get much bigger, because that’s the point where people stop knowing each other’s names”.

• Failure with operating a “Satellite Office” which did not work out due to inferior work ethics and having extra staff.

QUALIFIERS• Its clients should understand the need to innovate.• Its clients should be open to strategic engagements.• Big Spaceship aimed at promoting not a specific project

or a product, they aim to create an engagement with the potential customers of its clients and goes beyond advertising. The clients should be willing to spend the time and effort required for the same.

• It aims at higher revenue and growth in terms of working with top-tier clients on big projects and bigger profit margins

DISCLAIMER• Its easier to get revenue through more small projects than land with

a top-tier client with a big project. Smaller projects come faster.• By not growing in size, there is a chance to limit growth of the

company in terms of scaling new heights.• They should expand their horizons, because if it continues doing

what it has done in the past, it risks not responding to the market dynamics.

• The informal culture it maintains in its small office worked so far, but they need to get internally organized in terms of organizational structure for continuing the success achieved.

• Their compensation packages may not be attractive enough for bright new talent.

• It needs to take on more business to generate revenue.

THANK YOU