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Describes the evolution of Qwest from a small fiber-optic construction firm in 1996 to a global telecommunications giant in 2001. Focuses on Qwest's pivotal acquisition of "Baby Bell" US West, a regional Bell operating company many times Qwest's size. Discusses the rationale for the merger and its aftermath, including the cultural challenge of integrating a scrappy start-up with a bureaucratic, traditional firm.

Describes the business model for online market makers, firms that use the Internet to organize a marketplace, providing participants with a virtual "place" to trade, rules to govern their exchanges, and infrastructure to support trading. First it proposes a definition of market making and presents different ways to categorize online market makers. Next it describes how online market makers create value for market participants. Then it examines the economics of market making, focusing on revenue and cost drivers, using both online and offline examples. Building on that analysis, the final section examines the risks and potential payoffs to online market makers from pursuing aggressive growth strategies. Explores the value proposition offered by these companies and the economic imperatives they face. Finally, seeks to provide a framework for evaluating whether the adoption of aggressive growth strategies is prudent for online market makers.

Chris Hackett and Val Rayzman have spent six months after graduating from business school exploring the possibility of building a chain of upscale drycleaners. This fragmented industry looked ripe for an innovative new entrant. Chris and Val have researched the industry thoroughly, selected a metropolitan area in which to start, searched for acquisition candidates, and considered the prospect of de novo start-up. They have uncovered only one feasible acquisition candidate. With time and money running out, they feel pressured to decide whether to go through with the acquisition, to start their own store, or to abandon the project. This case is designed to focus on the strategic aspects of entrepreneurial management. May be used to emphasize the importance of understanding industry economics and competitive dynamics. May also be used to examine acquisition as an alternative to start-up.