Telezoo Case

Telezoo (A): Feast or Famine

Case Executive Summary

COMPANY SNAPSHOT

- Telezoo.com is a B2B telecommunications e-marketplace that matches suppliers with business buyers seeking complex telecommunication products, services and solutions worldwide

- Through a comprehensive standardized database, Telezoo empowers buyers to make informed purchasing decisions by providing an unbiased e-commerce platform that easily navigates and compares complex telecommunications solutions

- Named one of the top 5 telecom B2B sites globally by Forbes Magazine

- Mission statement: Provide a virtual one-stop shop for the evolving telecommunications needs of organizations

SWOT ANALYSIS

Strengths:

- Positive press publicity

- Recognized by industry leaders (eg. Forbes, Business Week)

- Qualified and skillful team (high knowledge in technology industry)

- Credibility: offers suppliers qualified and “serious” customers

- Efficient customer procurement process

Weaknesses:

- Unsuccessful in generating revenue through transaction fees

- Low recognition from buyers

- Lack of capital

Opportunities:

- Better utilized for complex, high-end products (accounting for $139 billion)

- High number of buyers in under-served markets (eg. complex, high value products)

Threats:

- Rapid change in telecommunication technology

- Growing number of on-line and off-line competitors

REVENUE MODEL

How can Telezoo generate revenues? How viable is the original transaction fee model?

- Telezoo’s 5% transaction fee model is viable, this is not their weakness. In the example given in the case, a one week procurement process generated Telezoo a transaction fee of $350,000. Although this may be considered an above average sale, if the company can produce consistent purchases such as these, they will have no problem generating consistent revenues.

- As it is shown, the 5% is a good source of revenue

- Remove the CPM advertising rates

- Continue charging suppliers with subscriptions...