AtomShockwave - A Venture Rollercoaster in the Online Entertainment Industry

Published 01 Jun 2006
Reference 5356
Industry Online Media
Region North America
Summary

This cases describes the founding, rapid expansion, and fall of an online entertainment venture through the Internet boom and bust. After a merger and painful restructuring, the entrepreneur was able to survive the downturn and reach cash flow break-even in 2002. He is now faced with difficult strategic questions about his ability to compete in each of its businesses: a small niche market where the company is the clear leader, and a larger, fast growing market where it faces powerful competitors.

Teaching objectives

This case can be used to illustrate the start-up process, from the initial vision and fundraising efforts, to rapid growth and subsequent dowturn and restructuring. The case is useful to discuss the issues of identifying new revenue sources as a process of exploration, the identification and exploration of cross-business synergies, and the role of vision and focus in new ventures.

Keywords
  • RD0506
  • AR2006
  • AR0506