Big Idea
BIG IDEA: WHY DID THE IDEA FAIL?[1]
Abstract: The case of Phil Vischer and Big Idea Entertainment, the company that created the VeggieTales video series, illustrates many of the problems faced by successful small businesses as they attempt to grow into larger firms. VeggieTales, a computer-animated series for children, was the most successful direct-to-video series in history yet, due to a series of misfortunes and miscalculations, Big Idea Entertainment went bankrupt and was ultimately purchased by another firm. This case details the firm’s early success and the difficulties the company encountered in its attempt to compete in an industry dominated by media giants like Disney and Dreamworks.
INTRODUCTION
In December of 2003 Phil Vischer was saying goodbye to a dream. Big Idea Productions, the company he had started, was bankrupt now. Only 45 of the company’s 210 employees still worked there and, in a few days, they would be packing up their offices as well. The company had seemed like a family at one time. Big Idea’s facility, located in the Yorktown Center mall in the Chicago suburb of Lombard, had once crackled with creative energy. Veggie Tales, a computer-generated animation series designed to teach Christian values to children, had been the company’s mainstay. They had sold 7 million videos in 1999, bringing in $40 million in revenue. Vischer had hoped the company would keep growing until it rivaled the Walt Disney Company as a leader in family entertainment. Those hopes were dying a painful death now. Ironically Vischer’s sadness was giving way to acceptance, even relief, as he reflected on the past decade and on his company’s uncertain future. (Smietana, 2004b, May)
Founding of the Company
Big Idea Productions had started in 1993 in a spare bedroom. A couple in a Bible study group Phil Vischer attended had lent him $60,000 to make the movie he had been dreaming about. (Smietana, 2004b, May) Vischer and his former
Abstract: The case of Phil Vischer and Big Idea Entertainment, the company that created the VeggieTales video series, illustrates many of the problems faced by successful small businesses as they attempt to grow into larger firms. VeggieTales, a computer-animated series for children, was the most successful direct-to-video series in history yet, due to a series of misfortunes and miscalculations, Big Idea Entertainment went bankrupt and was ultimately purchased by another firm. This case details the firm’s early success and the difficulties the company encountered in its attempt to compete in an industry dominated by media giants like Disney and Dreamworks.
INTRODUCTION
In December of 2003 Phil Vischer was saying goodbye to a dream. Big Idea Productions, the company he had started, was bankrupt now. Only 45 of the company’s 210 employees still worked there and, in a few days, they would be packing up their offices as well. The company had seemed like a family at one time. Big Idea’s facility, located in the Yorktown Center mall in the Chicago suburb of Lombard, had once crackled with creative energy. Veggie Tales, a computer-generated animation series designed to teach Christian values to children, had been the company’s mainstay. They had sold 7 million videos in 1999, bringing in $40 million in revenue. Vischer had hoped the company would keep growing until it rivaled the Walt Disney Company as a leader in family entertainment. Those hopes were dying a painful death now. Ironically Vischer’s sadness was giving way to acceptance, even relief, as he reflected on the past decade and on his company’s uncertain future. (Smietana, 2004b, May)
Founding of the Company
Big Idea Productions had started in 1993 in a spare bedroom. A couple in a Bible study group Phil Vischer attended had lent him $60,000 to make the movie he had been dreaming about. (Smietana, 2004b, May) Vischer and his former