In this case study, the founders of the Big Idea Group (BIG) acted as the middlemen between those individuals with ideas for children's products and those companies that were interested in developing the idea. After establishing a process for selecting ideas with good potential and matching them with the best corporation, managers at BIG felt very confident about how things were progressing. They decided that it was time to expand into another field using the same business model.
The authors state, "Collins said he believed that BIG's system created a virtuous cycle that built potent barriers to entry."
Assume you are in the home and garden industry and BIG would become a competitor of yours if they expand into this industry. Based on your resources:
What are the strengths of BIG's plan?
What are the weaknesses?
As a competitor, how would you attempt to break that "potent barrier" and stay profitable?
Prepare a brief memo to your boss outlining your proposed plan of action
The strengths of BIG's plan: BIG is only a middleman that seeks out products that they believe will be profitable. They are not experts in any of the fields or products that they help along, they simply match the talent with the distributors in order to make a profit. The strength of this plan is that they are not directly associated with the products, and they are not emotionally attached to it so they are able to remain indifferent, and to make the hard decisions when a product isn't doing as well as it should. ...
The big idea groups in the Middleman case study are examined.