Good Case Studies For Product Managers At Startups?

Question

What are some good Harvard Business School cases for product managers at startups?

Answer

Some of my favorite HBS cases (one below is a Stanford case) related to product management at startups are as outlined below (case name, case number, and order link). These cases were also taught and thoroughly discussed in our , so for further learning value, check that out.

Siebel Systems (A), 9-898-210, http://hbr.org/search/9-898-210/

Don't let the customer take over and dictate your business model and decisions
A key alliance can significantly launch an early-stage company
A leader needs trusted, confidential sources of internal and external information to get the real picture on where the product really stands
Salesmen tend to over-promise and oversell, so they need longitudinal control
Compensation plans need to align the employees' interests with those of the company and clients
The product/service always appears stellar during sales presentations, but this does not mean it can perform at the same level in production

CMR Enterprises, 9-501-012, http://hbr.org/search/9-501-012/

Give the customer updates and help them see the entire picture as agreements/pricing change due to change orders; manage expectations tightly over time
Even with adjacency and similarity of markets and products, there can be vastly different dynamics in two opportunities, e.g., commercial vs. residential in this case
Be careful to thoroughly analyze opportunistic relationships and opportunities
Importance of fencing off options -- tightly define the value proposition and pricing configuration; as the price goes down due to customer unwillingness to pay, so must the product/service level decrease
It is important to clearly define the value proposition and market position, sharpen your focus on key market targets, and provide a coherent message

Crocs, GS-57, http://hbr.org/search/gs57/

One guerilla marketing tool is to work with small players in the industry to get grass roots share, come up cheap and small, and let the big players eventually come to you; this puts you in a better bargaining position with the big players
Don't build capacity/capability until you have a market, and don't invest in infrastructure that already exists
Crocs had a tremendous product advantage in the industry because of the injection molding process that was very flexible and inexpensive
Crocs had good surge capacity in case demand really took off
With speed to market, Crocs could work through numerous product life cycles and fire, adjust, fire, adjust, etc.
Word-of-mouth marketing was powerful with Crocs; the shoes inherently generated discussion and buzz
Optimize before automating

NetFlix.com, Inc., 9-201-037, http://hbr.org/search/201037/

Event-based marketing is the most powerful type of marketing
Tech enablers drive some products and services, such as DVD players and the internet with Netflix; customer early adoption of DVD technology was a good proxy for customer early adoption of the internet
Personalized marketing, as with Amazon, was very effective in the Netflix model, to help customize and personalize ads for customers based on their tastes and preferences that the system easily collected
Digital rights management is difficult with downloaded media
Avoid overestimating adoption rates and pipeline dynamics
Be careful about growing too fast
To remedy a customer retention problem, build a predictive model with all known, relevant dynamics; get to know the customers you're losing, and profile them; reach out to the customers who might bolt soon
Coupon codes are helpful -- determine where your marketing is effective and where it is not; profile the type of customers from different sources
Often a business model can offer a variety of options for prices/service levels and does not have to stay with one price/service point
Customer retention issue and cash flow issue could be resolved by giving customer incentive to pre-pay for entire year for a special offer or great discount

Palm Computing, 9-396-245, http://hbr.org/search/396245/

Patent vs. copyright
Sometimes it is best to keep a design or process a trade secret, e.g., in an industry or application where it is easily replicable and could be easily stolen if disclosed; the best option is to just keep your formula, design, or process a trade secret
The legal aspects of product development with alliance partners can be complex and unpredictable
There should be a cap on the time/scope/duration of a licensing agreement
Retain patents and license out technology rather than give up control of patents to partners
Not rush or “cave to close” a deal/agreement, thereby overlooking key negotiation points

RealNetworks Rhapsody, 9-804-142, http://hbr.org/search/804142/

Going from a subscription service product to a software product is a difficult transition
There should be scale advantages on software and e-commerce
Determine whether you are a software or service company, trying to be both can confuse the market
Many early players failed, but paved the way for later, more successful fast followers
Try to create products and services that are “sticky” and have high barriers to exit
Think beyond your immediate business model, e.g., recording companies were not just in the CD business, and railroads were not just railroads (they were transportation companies)
Be very sensitive and aware of the impact of enabling technologies, e.g., broadband, portable media players, fiber optics, and CD-burning capability
Beware of threats from companies in your industry who are seizing a piece of the market as a loss-leader with a different core model, e.g., Apple's iTunes download service that was not their core, but was to promote the iPod, which was their core in their music offering

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