AirTech

Stephen Spinelli, Case Director
Dan D'Heilly and Jim Foster, Case Writer

Center for Entrepreneurial Studies,
Babson College © 1996

ISBN 0-324-00497-4

Case Teaching Package
A case teaching package, written by Stephen Spinelli, is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 28 pages in length and its case teaching package is 8 pages.

Abstract

This case describes how a successful, serial entrepreneur launched and harvested increasingly complex business ventures. AirTech was twelve years old in 1995, and it was one of the manufacturer's largest U.S. compressed-air machine distributors. The case provides a platform for discussing manufacturer/distributor and distributor/distributor relationships as the entrepreneur evaluates strategic growth alternatives including buying additional distribution territories and pursuing vertical integration. This entrepreneur shaped an opportunity in a fragmented industry and helped change the market's perception of a once free service (accessing compressed air at gas stations). The case also describes the creative development of a service delivery system, and raises the issue of managing growth in a cash-based business.

Study Questions

  1. Does AirTech have a sustainable competitive advantage?
  2. Describe and diagram the AirTech service delivery system.
  3. Assess AirTech's relationship with Air-serv using the franchise relationship model.
  4. Who are AirTech's customers?
  5. Who are AirTech's biggest competitors?
  6. How should Paul grow the business?
  7. What exit strategy would you recommend for Paul Gelinas?

Key Words

building a career as an entrepreneur, rapid growth, cash business, service delivery system, consolidating a fragmented industry, dealerships


Download Review Copy

The downloadable file for this case is an self-extracting WinZip file. After downloading, find AirTech.exe in Windows® Explorer and double-click the file to decompress. The case file itself is in Microsoft® Word 7.0 for Windows®.

If you do not have Microsoft Word, you can download the free Microsoft® Word Viewer 97 right here:   For Windows 3.x   For Windows 95


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