Arrival Communications

This case examines the challenges faced by a start-up communications company during its first year in business. Begun by two young MBAs in late 1999, Arrival Communications, a digital subscriber line (“DSL”) services company focused on meeting the needs of small-to-medium sized businesses in second and third tier markets. The company had gone through a lot in a short period of time – it had raised millions of dollars, made an acquisition, hired dozens of people including a new CEO, opened numerous offices, signed contracts with major telecommunications equipment vendors, gone through several significant strategic and organizational changes, laid off scores of people, and ultimately made an appointment to file for bankruptcy, while it sought additional funding from its existing investors. The case analyzes the key management decisions that resulted in those myriad changes, and culminates with management pitching its existing investors for an additional $12 million in order to avoid bankruptcy and keep Arrival afloat.