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Synopsis
Danger, Inc. describes
a startup in Silicon Valley that must analyze and decide on
the best companies for its portfolio of manufacturing and
carrier partners. With a complete solution that enables wireless
carriers to offer innovative and affordable voice and data
products to their customers over next-generation networks,
Danger Inc. was a hot Silicon Valley startup. The founding
team had successfully implemented a first-generation integrated
solution, won numerous awards from the industry for their
innovation, received enthusiastic consumer reviews for their
handheld product, and had signed on their first major customer,
T-Mobile. At this point, Danger needed to build a portfolio
of strategic relationships that would help bring its technology
to mainstream markets.
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There are three key issues in this
case:
Which wireless carriers were the leading candidates to create
wireless data services based on the Danger platform for
their customers around the world?
Which companies were the most attractive potential partners
to design and manufacture Danger-compatible handheld devices?
How could Danger develop trust and collaboration with prospective
partners who were often in fierce competition with one another?
*This synopsis is adopted from Danger
Inc. Teaching Notes. Professor Tom Kosnik. Stanford
University.
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When
should this case be discussed?
Danger Inc. is a great case study to encourage
discussion on 'ecosystem' building. As startups grow into
sustainable companies, they must form and maintain a complex
portfolio alliances and partnerships. Before studying Danger
Inc., it may be useful to discuss Global Wireless Ventures,
a shorter case on the wireless industry.
Teaching notes available in Instructors Section at www.mhhe.com/dorfbyers1e |
Relevant
chapters and questions
Ch 13: Acquiring,
Organizing and Managing Resources
Ch 15: The Management of Operations
Ch 19: Presenting the Plan and Negotiating
the Deal |
1. What can Danger offer its potential allies
(carriers and manufacturers) in terms of pushes and pulls
to partner? What would potential allies want in return?
2. How can James Isaacs position Danger in discussion with
potential partners in wireless services and handheld devices
so they will perceive Danger as a "value - add" but non-threatening
partner?
3. What are the risks to Danger of having T-Mobile as a strategic
partner in the long run? How can you manage those risks?
4. What steps can you take to prevent the addition of a second
US carrier alliance from ruining the relationship Danger has
with T-Mobile? " Formulate a game plan for building Danger's
portfolio of partnerships. |
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