VoIP biz free essay sample

VOIP2.biz started in 2005 after a detailed study of VoIP market and evaluation of current service providers in the market by Harley Services Corporation (HSC). VoIP2.biz considered as a Systems integrator that worked with business customers to help them move their voice communications from legacy technology to VoIP technology.VoIP2.biz was owned by several outside investors, Milkowski, and HSC. HSC retained 70 percent of the stock in VoIP2.biz. In June 2006 after completing Phase1 plan with net loss of $86,000 and slower progress company’s board of directors are not sure about the company’s future. Lawrence R. Murkowski, President and CEO of VoIP2.biz Inc. had the challenge to show the future plan to the board of directors so they can take the right decision. ISSUES/PROBLEMS (20 Points)* †¢Negative cash flow with net loss of $86,000 after phase1 plan implementation. †¢Slower growth. †¢Competition †¢Selecting new market for expansion. †¢Relationship with a CLEC operating in the marketplace. We will write a custom essay sample on VoIP biz or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page †¢Finding suitable authorized distributors in marketplace. †¢Getting skilled people in new marketplace. †¢Correct marketing and sales activities. †¢Problem of a low close rate. †¢Investment required and no current investor was willing to invest the required amount. †¢They cannot sell the company at higher price due to negative cash flow. †¢If they close the business what will happen to their current customers. SOLUTIONS (Taken by the company) (20 Points)* †¢Market expansions via starting sales and operations in five additional Markets. †¢Selecting and entering into new market with proper planning. †¢three-fold channel strategy †¢Telco-in-the-box. †¢Providing demonstration and experience for new prospective customers. †¢post-installation support †¢Hire skilled staff and provide training to current employees. †¢Test and debug all the components before using in solution set. †¢Complete the installation at customer existing customer sites. †¢Secured distribution and reseller agreements for the necessary network and equipment service components, †¢Outsource the call center operation. †¢Target call centers as new client. †¢Developing a franchise strategy for smaller geographic markets. EVALUATION OF SOLUTIONS/ANALYSIS (30 Points)** †¢With market expansions they can extend their boundaries and open new opportunities of growth. †¢The company’s franchise strategy would allow entry into smaller geographic markets by partnering with knowledgeable solution providers. These partnerships would use technology and business processes from VoIP2.biz and the sales and installation resources of the partner. †¢New markets, the company would execute an advertising and promotion plan that introduced the benefits of VoIP and the advantages of an open source platform. †¢As shown earlier, VoIP2.biz offered solutions under both a hosted and a system sales pricing structure. Under the Phase II Plan, these hosted solutions would be priced at $25 to $30 per user per month, plus the monthly cost of Internet access. They planned these contracts to normally be three year agreements. The company planned to charge for nonrecurring, which included an installation fee of $1,000 plus the cost of any telephone handsets and any optional data networking equipment and services the customer needed. †¢The monthly call origination and termination service could be priced very profitably—at 80 to 90 percent margin. With this they can create more profit. †¢Presentations in each market early in the market entry process it will create awareness about the company services in society. Experience had taught Milkowski that the prospect would want to see a demonstration and experience VoIP2.biz’s service so the plan called for sales personnel to install a demonstration phone at the client site. †¢Test and debug all the components before using in solution set this will give better flawless service to customers. †¢Relationship with distributors will give them confidence and stability.