NEW YORK UNIVERSITY
Management & Organizations
Professor Taeya Howell
October 2, 2014
Big Spaceship is a digital marketing agency and its name is usually associated with numerous awards for its work with big brands such as Coca-Cola, Nike, HBO, and Miramax. However, the company’s size is relatively small compared to its achievements. Using a set of strategies and management skills, Big Spaceship established its uniqueness and superiority within its respective field. Its strategies include rising further than the assignments handed to them, look at the big picture, and a bidding process (Client “Filter”). Its management skills include ...view middle of the document...
’ You can bring your personality to work.” Big Spaceship’s CEO, Michael Lebowitz, wants to keep the company small yet filled with talent. The economic logic behind the company is to support expansion through the continuation of acquiring business repeatedly and that they form small teams to deal with different projects at the same time. The five elements that Big Spaceship use have set them at a point further than its competitors.
The strategies the company developed were shaped by five forces: entry barriers, rivalry among established companies, bargaining power of buyers, bargaining power of suppliers, and substitute products. The entry barriers included several huge companies that dominated the field and many other independent digital agencies. Before establishing Big Spaceship’s strong foothold, the reputation of the huge companies bid and got most of the projects assigned. There is quite a bit of rivalry because in order to get the projects, there was competitive bidding and the preparation of proposals but that didn’t matter to the company in a couple of years later since they had established good relations with clients. The bargaining power of buyers is way larger than the bargaining power of sellers because the bidding process expects the sellers (digital agencies) to come up with new ideas, how much it costs, and many other details. Basically, the seller had to pitch in everything in order to get clients and the clients could switch suppliers without many worries about costs. Luckily, however, there aren’t any substitute products because a production comes from scratch.
Another large factor is culture. The assumption is that the employees are all happy with their work because the working environment and this produces beneficial outcomes. The espoused values are to provide solutions (not a solution) to reach customers through digital media and the spirit of innovation (which differentiates the company from competitors). The artifacts include the hosting of Big Spaceship Olympics, video game Guitar Hero, and the fact that employees could bring their dogs to work.
With these said, however, the answer to the question is yes the company should expand/grow. The reason to that is because the company that has experienced so much success already in the few years since it started still hasn’t reached its greatest potential. True, it has a solid foundation and it’s very unique in dealing with whatever comes in the company’s way. It has established itself as one of the top group in the digital marketing industry. The strategies seem to ensure success. For the past few years, it doesn’t seem that the company suffered any setbacks with what Lebowitz and his trusted board had devised. However, in the long run, Big Spaceship’s many competitors would surpass it. With the field being so competitive, it doesn’t seem safe for the company to just stay where it is. Lebowitz seems to be satisfied with the current progress the company has made but he has...