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.
• Selecting new market for expansion.
• Relationship with a CLEC operating in the marketplace.
• 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
• 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