Anthony
Liisi
1996 – First idea of Captivate
What if you put flat-screen
displays inside elevators so
people had something to watch
while waiting to read their
destination?
2011 – Network of 10,000 office
elevator displays across North
America
Seen by 4 million smart, busy,
upscale professionals on the
move and struggling “to do it
all”.
Critical Decision 1
Are We a Technology
Company or a Media
Company?
 A company must also focus on
how its technology creates
value for the end user
Licensing the technology
to an elevator company?
Who is the audience?
 To assemble sufficient data to
persuade building owners to
install flat-panel displays in
their elevators and advertisers
to pay to run ads on the
displays.
Critical Decision 2
Should We Hire Nielsen
Media or Do Our Market
Research?
No one a had ever placed
flat-panel displays in
elevators before, so how
effective the advertising
would be?
Nielsen wanted $200,000.
Credibility Vs Cost.
 Preliminary research by
Captivate: average income of
$100,000, Professional &
Managerial hard to reach
through traditional media.
 To be armed with verified,
unbiased data to support his
business concept.
Critical Decision 3
Should We Take Otis’s
Offer? To partner with the
largest elevator company?
Market share? Is 25%
enough?
Who are the customers?
 To be an exclusive provider of
flat-screen displays.
 Not allowed to install its
systems in any other elevators.
 All of the market share
 As media company, building
owners and advertisers were
primary customers.
“ Here we were. We had no revenue, very little funding, a cool
technology, and an idea. And here’s the largest elevator company
in the world that wants to partner with us, and we said “No”. ”
Critical Decision 4
Should We Give the
Building Owners a Cut of
the Profits?
To provide building owners
a service?
 Development of its business
model, and how much its
revenue it should share with
its partners.
 To feel like they were a
participant in its business
rather than just bystanders.
Present-Day Growth
Path
Tragic events of September
11, 2011.
 More and more popular
 Demand is increasing
 To pass safety information in
times of emergency
 Purchased by Gannett in 2004
Question 2
 Why do you think that Captivate has been
able to sustain its growth? What, if
anything, will eventually slow the growth of
the company?
Question 2
 No competitors
 Audience: on-the-goal professionals
 3.7 million people
 Division of Gannett
 10 000 elevator displays
 1000 office buildings
 39 million ads
 What will come next?
Question 3
 Of the day-to-day challenges of managing
growth discussed in the chapter, which of
the challenges do you think were the most
difficult for Captivate to deal with during
the firm’s early years?
Question 3
 Cash Flow Management
 Nielsen Media research
 Very little funding, no revenue
 Cut of the profits to building owners
 Price Stability – no competitors to fight with
 Quality Control
 Capital Constraints
Question 4
 Why do you think Gannett purchased
Captivate?
Question 4
 Gannett: US newspaper company
 Newspapers + Internet
 How to advertise more
 Logical solution
Question 1 + Application Question 1
 Which of the four decisions discussed in the
case do you think was the most difficult?
What would have happened to Captivate if
it had made the opposite decision in this
circumstances?
 How do you think Captivate would have
evolved if DiFranza and his team had seen
the company as a technological company
rather than a media company?
Which of the four
decisions discussed in the
was the most critical?
Critical Question 1:
 2)No need to hire Nielsen
Are We a Technology
Company or a Media
Company?
Media
 3)Would had taken Otis’s
Offer or offered licensing the
technology
 4)No profits to the building
owners
How would Captivate have evolved if Difranza had
seen the company as a technology company rather
than a media company?
Microsoft (technology
company)
 Focus on developing new
technology (new software
every year or 2 years)
 Licensing to computer maker
companies
 To look for new support to
develop the technology (from
computer to smartphone)
Captivate (if technology
company)
 HD & 3D flat-panel displays
 To look for other places
where people are “captivates”
i.e waiting room, airport…
 Not as big as today and would
not had being purchased by
Gannett
Application Question 2
 Think of your professional life as a student
or as an employee, if you currently have a
job. List four major decisions that you made
that have put you on the track that you’re
currently on. Reflecting back, would you
change any of the decisions that you made?
If so, why?
Liisi’s questions
 Where to go to study – Tartu or Tallinn?
 What to study – economics vs mathematics?
 Start working while still studying?
 Go to abroad? Where?
Anthony’s
Should I change field of study? To
stay in science or to go in business?
 High school diploma specialized in sciences
 Family owns a grocery-chain
To stay in my hometown or to leave
for the capital city?
 Hometown: To take care of the family as the eldest
To pursue a double degrees or to
have more work experiences?
To stay in France after my French
university reject my application for
2nd year of Master degree or to go
study in Taiwan to have a Master
degree?
but no Chinese class and limited awareness of
globalization
 Capital city: To live alone, To adapt to a new
environment
 Double degrees: Rooms are limited, To be abroad
at little cost, To make an international network
 France: To work only in France, Bad economical
environment (unemployment rate high, growth
rate null)
 Taiwan: To keep enlarging my international
network, improving my Chinese, To build up time