Communications Services Case Study

THE CHALLENGE - A global Internet service provider had achieved considerable success with a vertical-focused, go-to-market strategy and wanted to identify new opportunities in specific vertical communication services markets. The company tasked Frost & Sullivan's research and consulting teams with defining directions for growth in IP VPN during 2004 and beyond by assessing vertical markets for market potential, accessibility, and competition.

THE PROCESS - The project commenced with a workshop to decide which of the original target markets had potential for particular types of vertical growth, and to test the assumptions underlying the expected success in IP VPN. Each vertical market was then analyzed using the following research techniques: secondary research using Frost & Sullivan's databases of research related to IP VPN and other business data communications services, qualitative discussions with industry participants and experts, and a structured survey of potential IP VPN customers that was conducted by our customer research interview teams.

THE SOLUTION - The final workshop considered the opportunities proposed by Frost & Sullivan in conjunction with the client’s own ideas and initiatives. During the workshop, Frost & Sullivan presented the market potential of each vertical segment using business population demographics and a qualitative assessment of customer needs. Barriers to entry and the strategic fit were then assessed to determine the feasibility of each opportunity. The combination of these two approaches resulted in a prioritized list of opportunities and corresponding actions to be taken. The client used these findings to focus service development activity on just two vertical segments and began the development of precise vertical-focused propositions.


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