Magic Markers (A): Growing a Whiteboard Animation Company

In 2013, two entrepreneurs founded Magic Markers, a whiteboard animation company in Bogotá, Colombia, with the mission of gracefully explaining complex issues to interested audiences. The (A) case describes how the company experienced unanticipated growth after one of its videos went viral. The two founders faced several challenges and needed to quickly learn how to manage their growing business. Human resources issues proved to be particularly trying and difficult to manage. In late 2017, an investor presented Magic Markers with an investment offer, which the owners needed to evaluate carefully. The (B) case focuses on social media reactions to content posted by the company.

This case can be used in a general entrepreneurship or a digital entrepreneurship course to introduce the topic of technology entrepreneurship, or to analyze the creation of growth and its effects on an already established start-up. In a general entrepreneurship course, students will address issues pertaining to critical capabilities and strategic change. After working through the case and assignment questions, students will be able to<br><ul><li>define critical change points that require company action;</li><li>understand the challenges associated with (unplanned) growth;</li><li>discuss the centrality of the hiring process for new ventures;</li><li>evaluate and respond to a business expansion proposal; and</li><li>perform a simple break-even analysis.</li></ul> In a digital entrepreneurship course, students will be able to<br><ul><li>recognize key causes and effects of viral communication for digital businesses;</li><li>understand how multi-sided or peer-to-peer technological platforms can influence market structure;</li><li>discuss the various mechanisms companies can use to profit from digital goods;</li><li>identify off-shoring as a viable means of scaling with digital goods; and</li><li>explore the options for digital businesses to manage their credibility on social media.</li></ul>

• growth challenges, business expansion