Submitted by: Submitted by smilicious
Views: 789
Words: 716
Pages: 3
Category: Business and Industry
Date Submitted: 01/19/2012 06:39 PM
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...