“Making SMal Big: SMaL Camera Technologies” is an innovative product that made significant profits in the first year but then quickly was attacked by competitors. The evolution and technology of the product in detail. It ends with five different options for technological and business strategy, along with pros and cons of each strategy. SMaL Camera Technologies created a disruptive technology but made some bad decisions failing to get high revenues from commercializing its product: It did not build on internal marketing capabilities and also decided against in-house manufacturing and distribution. Startups must be managed very differently and their management has to make important choices in the first few years of operation that determines the firm’s direction. Though startups are at a disadvantage (resources, visibility and age) when it comes to commercializing disruptive technology, they also have significant advantages over larger and stronger firms, who rarely go disruptive and prefer market-pull strategies. They can maintain low visibility till they have all the resources, manufacturing and distribution facilities in place, then hit the market; first entering a niche market making less profits and then going mainstream.
QUESTIONS
1. How can dreams of annual revenues past $100 million by senior management hamper wise technological strategy decisions?
2. Are the SMaL camera units of technology easily copied?
3. Was it strategically wise to go to the CES show prematurely and show off the SMaL camera concept?
4. Is it a good strategy to have external marketing for the SMaL camera?
5. Is it a good strategy to have only external manufacturing of the SMaL camera?