Telezoo's true market opportunity was serving complex, high-end telecom products worth $139 billion, especially suppliers with over $50 million in annual sales who had large marketing budgets. However, Telezoo's original transaction fee model would generate little revenue. To succeed, Telezoo needed to identify partners who could effectively reach customers at low cost, leveraging the partners' reputations and capabilities. Presenting a focused plan to prioritize key market segments, products, personnel, and partners could reassure investors that a sustainable business model existed.
Telezoo's true market opportunity was serving complex, high-end telecom products worth $139 billion, especially suppliers with over $50 million in annual sales who had large marketing budgets. However, Telezoo's original transaction fee model would generate little revenue. To succeed, Telezoo needed to identify partners who could effectively reach customers at low cost, leveraging the partners' reputations and capabilities. Presenting a focused plan to prioritize key market segments, products, personnel, and partners could reassure investors that a sustainable business model existed.
Telezoo's true market opportunity was serving complex, high-end telecom products worth $139 billion, especially suppliers with over $50 million in annual sales who had large marketing budgets. However, Telezoo's original transaction fee model would generate little revenue. To succeed, Telezoo needed to identify partners who could effectively reach customers at low cost, leveraging the partners' reputations and capabilities. Presenting a focused plan to prioritize key market segments, products, personnel, and partners could reassure investors that a sustainable business model existed.
Submitted by: Haris Khan Class: BBA- 8M Enroll#: 01-111132-064 Date: 7/05/19 Q: What was the true market for Telezoo? The true market for Telezoo was the complex high-end products, which account for $139 billion dollars. But this can further be narrowed, the telecom suppliers that had $50 million dollars in sales represents the best market opportunity, because of their large marketing budgets. As Telezoo had direct relevance to components of a firm’s overall communications strategy (for example: advertising, direct mail, inside sales), her analysis narrowed the potential market size to $2.5 billion market opportunity. Q: How can Telezoo differentiate itself from the growing field of competitors? Telezoo can differentiate itself from the growing field of competitors through focusing on the high-end complex products. Rather than spending upwards of $1 million per year in print advertisements and other expensive media outlets, They should focused on identifying partners who could more effectively reach the Telezoo target audience at a lower cost and looked for ways to gain leverage from their partners capabilities and reputations. Q: How can telezoo generate revenues without hiring additional people or advertising? It can generate revenue through its 5% transaction fee model. Other than that by acquiring suppliers with big marketing budgets and reputable names. By developing cobranded banners (dedicated areas) on the partner Web sites and following the guidance of a revenue-sharing model, Telezoo would be able to decrease its costs by paying only for performing marketing outlets. That approach enabled the partner, who already had a strong, brand name and relationships with buyers, to drive traffic to the Telezoo Internet site Q: How viable is the original transaction fee model? Telezoo cannot depend solely on its transaction fee model as it contributes very little to the revenues. They should focused on identifying partners who could more effectively reach the Telezoo target audience at a lower cost and looked for ways to gain leverage from their partners capabilities and reputations. For example reputable telecommunication magazines and internet sites to broaden their customer base. Q: How could be the quantity versus quality of partners balanced? By identifying partners who could more effectively reach the Telezoo target audience at a lower cost and looked for ways to gain leverage from their partners capabilities and reputations. Q: How could she provide additional assurance to the board and potential investors that a sustainable business model existed? To accomplish her mission, Murville went back to basics. After her analysis of the business, she developed a simple set of objectives for the board meeting. Her goal was to educate the board and the management team on the most critical priorities for the next two quarters: market focus, product focus, personnel focus, and partner focus. To that end, she began the process of identifying priority segments. Once identified, she would tailor appropriate product offerings. In addition, she searched for key partners to help reach the most important segments in a cost- effective manner. Q: How could Telezoo stay in business? Telezoo could stay in business by focusing on high-end complex products. By bringing suppliers with more than $50 million sales, having huge marketing budgets. By identifying partners who could more effectively reach the Telezoo target audience at a lower cost and looked for ways to gain leverage from their partners capabilities and reputations.