Pathway Communications Inc‪.‬

The president of Pathway Communications Inc. (Pathway), a regional Internet service provider (ISP), had to decide the best course of action to transform Pathway into a national information technology firm that offered end-to-end technology support for a variety of consumer and business needs. At the same time, a regional telecommunications firm wanted to buy Pathway. He wondered if he should pursue this offer or one of the following options: franchise his concept and replicate the Pathway business model; execute a national roll-up by buying several smaller ISPs and then completing an initial public offering; or, combine his business with a larger ISP or other telecommunications firm. This comprehensive strategy case provides students with the opportunity to explore the issues of growth in a young, high-technology firm and to discuss the significant financial implications of the different alternatives.