Business Case 101

A business case is a documented argument that outlines the rationale for initiating a project or task. It typically includes an analysis of the benefits, costs, risks, and alignment with strategic goals. Here are 10 famous examples of business cases, explained simply:

Apple iPhone Launch (2007):

Situation: Apple was known for its computers and the iPod.

Objective: Enter the mobile phone market with a revolutionary device.

Justification: High potential market demand for a multi-functional, user-friendly phone combining music, internet, and communication.

Outcome: Massive success; transformed Apple into a global tech leader, contributing significantly to its revenue.

Netflix Streaming Service (2007):

Situation: Netflix was a DVD rental service.

Objective: Transition to a digital streaming service.

Justification: Growth in internet speeds and digital media consumption trends.

Outcome: Netflix became a dominant player in entertainment, reducing reliance on physical DVDs and appealing to a broader audience.

Amazon Web Services (AWS) Launch (2006):

Situation: Amazon was an online retailer.

Objective: Enter the cloud computing market.

Justification: Internal need for scalable computing infrastructure and market demand for such services.

Outcome: AWS became a major revenue stream, making Amazon a leader in cloud services.

Tesla Model S (2012):

Situation: Tesla had released the Roadster but needed a more mass-market appeal.

Objective: Develop a high-performance electric sedan.

Justification: Growing environmental concerns and demand for sustainable transportation.

Outcome: Tesla gained significant market share, proving the viability of electric vehicles (EVs) and boosting its brand.

Starbucks Mobile Order & Pay (2015):

Situation: Long lines at stores were causing customer dissatisfaction.

Objective: Implement a mobile app for ordering and payment.

Justification: Enhance customer experience and operational efficiency.

Outcome: Increased sales, reduced wait times, and improved customer loyalty.

IBM Watson (2011):

Situation: IBM was looking to expand its AI capabilities.

Objective: Develop a cognitive computing system that can interpret human language.

Justification: Rising importance of data analytics and AI in business and healthcare.

Outcome: Watson became a cornerstone of IBM's AI strategy, applied in various industries like healthcare and finance.

Airbnb Expansion (2009):

Situation: Airbnb was a small startup providing short-term rentals.

Objective: Expand globally and diversify property listings.

Justification: Growing trend of travelers seeking unique, local experiences over traditional hotels.

Outcome: Airbnb disrupted the hospitality industry, becoming a global platform for accommodations.

Google’s Acquisition of YouTube (2006):

Situation: Google was a search engine and advertising company.

Objective: Acquire YouTube to enter the video content market.

Justification: Increasing popularity of online video and potential for ad revenue.

Outcome: YouTube became the world’s leading video-sharing platform, significantly boosting Google's ad revenue.

Microsoft Azure (2010):

Situation: Microsoft was primarily known for its software products.

Objective: Enter the cloud services market with Azure.

Justification: Growing demand for cloud computing and Microsoft's expertise in enterprise software.

Outcome: Azure became one of the top cloud service providers, crucial to Microsoft’s growth strategy.

Disney’s Acquisition of Pixar (2006):

Situation: Disney’s animation department was struggling.

Objective: Acquire Pixar to revitalize its animation studio.

Justification: Pixar’s innovative technology and storytelling capabilities.

Outcome: The acquisition led to a series of successful animated films and rejuvenated Disney’s brand.

These examples illustrate how companies develop business cases to strategically justify major investments, expansions, or new initiatives, leading to significant changes in their trajectories and success.