Voip2 Case Study

VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier

Introduction

VoIP2.Biz Supplier established in October 2005 and based in Indianapolis. Several outside investors, Lawrence Milkowski and Harley Services Corporation (HSC) own it. Milkowski is the president and chief executive officer (CEO) of VoIP2.Biz which supplies Voice over Internet Protocol (VoIP) telephony complete end-to-end solution to small and midsize business market (Nelson & DeHayes, 2010, p. 128).

VoIP2.Biz sold systems that provided the economic benefits of collapsing the voice and data network together into a consolidated network included the call origination and termination services instead of traditional phone company services and utilized an open-source call processing platform (Nelson & DeHayes, 2010, p. 128). By June 2006, after completing the phase one plan, VoIP2. Biz sold it systems to 22 customers only with net loss of $66,000 (Nelson & DeHayes, 2010, p. 129). Milkowski had to prepare his recommendations and options for the company future activities to be presented to the board of directors in June 27, 2006. The board of directors hope to get the company's cash flow to break-even.

VoIP2. Biz challenges and Problems

After completing phase one plane, VoIP2. Biz had a negative cash flow with net loss of $66,000. They had slower growth with only 22 customers. In addition, it is covering a small market in Indianapolis with 100 lines or less, and they did not expand in Indian market or in the number of lines. VoIP2.Biz having difficulties in finding local staffs with the appropriate experience and skills. They have a problem of low close rate since the sales life cycle consume longer time (Nelson & DeHayes, 2010).

There are many voice communication solutions players in the market. They are the national hosted VoIP solution providers, incumbent local exchange carriers, competitive local exchange carriers, internet service providers, interconnect and private branch exchange (PBX)...