Mega: Insist on the Public Initiative or Pivot to the Private Sector?

Abstract

This teaching case focuses on Mega, a fictitious startup in the innovation sector, founded by Ramon and later incorporating Jonathan and David as partners, also with fictitious names. During the development of the teaching case, researchers conducted interviews with managers from the company. Mega faces challenges related to the viability and direction of its projects, with a focus on solutions for public organizations. However, the legal uncertainty perceived by public managers hinders the delivery of the final product. Mega is confronted with the dilemma of deciding whether to deepen its studies to secure contracts in the public sector or redirect its efforts towards the private sector. The lack of product adoption by municipalities raises concerns about its financial viability. The partners need to balance the books and ensure the sustainability of the company, considering the possibility of keeping both projects ongoing or abandoning the public sector in favor of the private sector. The objective of this case is to evaluate the context in order to make the appropriate strategic decision, taking into account financial sustainability, growth potential in different markets, and product adaptability. It is essential to analyze market trends, understand customer needs, and be prepared to innovate and adapt. The case provides insights into strategy, innovation, entrepreneurship, and market analysis, highlighting the importance of reassessing strategy, seeking opportunities for diversification and growth in more receptive markets.