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Case Study

First Tuesday (A): The internet cocktail party

By Benoit F. Leleux and Lisa Mwezi Schüpbach

16 pages

December 2000

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Reference: IMD-3-0900

Modeled along the lines of the Churchill Club or the DrinksExchange in San Francisco, First Tuesday offers an informal cocktail-party style forum for anyone interested in the new economy and new media. The gatherings appealed to both actual and would-be entrepreneurs, investors and professionals alike, anyone with an interest in keeping abreast of the latest developments in the field. The case describes the company’s founding and accidental growth to the stage the organic structure becomes an issue threatening its future.

Keywords

Internet, eCommerce, Venture Capital, Matchmaking, New Economy, Services

Settings

United Kingdom
October 1998 to 2000

Type

Field Research

Available Languages

English

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This case study is part of a series

First Tuesday (A): The internet cocktail party
First Tuesday (B): Beyond the cocktail party

This case study is part of a series

First Tuesday (A): The internet cocktail party
First Tuesday (B): Beyond the cocktail party

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This brief case exercise presents an increasingly common business scenario: An established player acquires a small, agile start-up to re-energize its value proposition. In this case, established global beauty giant UrbanLuxe acquires beauty start-up KYX. UrbanLuxe represents an old-school company selling a classic portfolio mainly via traditional distribution channels of luxury and travel retail, whereas KYX is exclusively an e-commerce brand. UrbanLuxe has a stable – perhaps stale – product line while KYX is in constant experimental churn, with an influencer-based media strategy that brings inherent demand volatility. The supply chain director is tasked with identifying the supply chain risks and opportunities associated with the acquisition. The two companies are different from both an operations perspective and a marketing perspective. UrbanLuxe has five factories servicing a global demand. KYX relies on one co-manufacturer focused on the US market. UrbanLuxe distributes to classic retailers from its own warehouses, KYX uses a third-party logistics provider for its exclusively e-commerce business. Further complicating matters, UrbanLuxe’s CEO has ambitious growth plans to make KYX a global brand. The supply chain director must not only consider integrating the acquisition but also supporting the growth strategy, for which they are asked to find cost savings to provide funding. The case provides a vehicle for students to consider the supply chain challenges a company might face in successfully integrating a starkly different acquisition. This case anchored in the real world will elicit universal challenges in companies today.

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