Dmatek: The HomeFree Business

Published 31 May 2008
Reference 5518
Topic Strategy
Region Global
Summary

The case study describes the choices of Dmatek, an Israeli based company in the field of electronic monitoring, that is experiencing rapid growth. Dmatek faces two decisions: 1) whether to spin off its subsidiary HomeFree, a wireless resident monitoring solutions provider, and 2) whether to shift the focus of the HomeFree business from B-to-B to B-to-C.

Teaching objectives

The case can be used to illustrate the criteria to use when making a spin-off decision. It also illustrates more general governance issues common to high growth businesses. Lastly, the case can also be used to generate discussion the issues inherent to refocusing a business from B-to-B to B-to-C.

Keywords
  • Electronic monitoring
  • Spin-off
  • Managing Growth
  • Corporate Entrepreneurship
  • Governance
  • Homecare/nursing care
  • RD0508
  • AR2008
  • AR0708