1. Confidential
1
Carlos F. Camargo
Collaborative Marketing
399 Main Street
Los Altos, CA 94022
650-949-4882
February 1999
Phase II:
Market Opportunity Identification
Small-to-Medium-sized Business Deep Dive
A custom research project for Prodigy Business Solutions
2. Confidential
2
High Level Findings from Phase I (July 1998)
• Focus on SMB firms with <50 employees in the
NY Metro and Northern California areas
• Emerging geographies are Dallas, Atlanta, and Miami
• Offer services with low up-front costs
• Ripest markets are consulting and accounting
• Expand capabilities through partnering
• Build aggressive demand generation programs
Prodigy Capabilities
Top Competitors
Targeting SMB
Best Markets Bundling Opportunity
Key Recommendations
Consulting, Accounting,
Publishing, A/E/C, Investment,
Legal & Health
Consulting, Accounting,
Publishing, A/E/C, Investment,
Legal & Health
Large User Base,
Concentrated in Key Metro
Areas, Brand Equity,
Customer Service
Large User Base,
Concentrated in Key Metro
Areas, Brand Equity,
Customer Service
Mindspring &
Earthlink
Mindspring &
Earthlink
E-mail, Web Hosting, Backup,
IP Fax & Business Quality
Customer Service
E-mail, Web Hosting, Backup,
IP Fax & Business Quality
Customer Service
Size Class
1-24
employees
25-99
employees
100-500 employees
# of Companies
(*) 9.5 million 624,000 155,000
Level of Need/
Level of
Fullfillment
High/ Low High/ High High/ High
Geographical
Attractiveness
More concentrated in
Prodigy coverage
No advantage No advantage
Channel
Telemarketing
VARs
Developers
Associations
Vendors
Telemarketing
VARs
Developers
Direct
VARs
Developers
(*) Source: Dun and Bradstreet
Laying down the Foundation for
SMB Access, Presence &
Commerce
Laying down the Foundation forLaying down the Foundation for
SMB Access, Presence &SMB Access, Presence &
CommerceCommerce
3. Confidential
3
Review of Key Findings from Phase I (July 1998)
Knowledge Workers are Ripest MarketKnowledge Workers are Ripest Market
• Accounting & Consulting share similar needs
but will buy through different channels
• Require Relatively Generic Tools and Services
• Health, Investment, and Legal require more
specialized content and services
• Highly mobile workers with roaming access
needs
6 month
opportunities
12 mo. opportunities
18+ mo. opportunities
Consulting
Accounting
A/E/C
Investment
Legal
Healthcare
Education
Manufacturing
Insurance
Wholesale
Real Estate
Retail
Publishing
The objectives of Phase I were to:The objectives of Phase I were to:
1) prepare a market segmentation situation analysis
identifying and classifying the "universe" of
market segments
2) determine the highest value for small and
medium business market segments
3) relate the potential Prodigy business bundle
offerings to the leading market segment
opportunities.
4) perform a competitive analysis of key
competitors
5) conduct an analysis of channel alternatives
Competitive Landscape & Best PracticesCompetitive Landscape & Best Practices
•Referral Programs
•Customer Gateway
•Information &
Resource Library
•ISV Alliances
•OEM Partnerships
•Web Developer
Programs
MindSpringMindSpring
EarthlinkEarthlink
PSINetPSINet
ConcentricConcentric
NetcomNetcom
Demand Generation Strategies Channel Strategies
4. Confidential
4
Phase II Objectives
• Find commonalties across the SMB market around which
Prodigy can form marketing themes
• Identify the most compelling IP-based applications and
services for the SMB market
• Chart the Buying Process for SMBs, focusing on purchasing
criteria and motivations
• Determine the overall opportunities in the following
employee-size segments: 1-4, 5-9, 10-19, 20-49, 50+
• Identify the the commonalties of the SMB market for web
hosting
• Recommend pricing strategies for SMB market entry
• Identify sources of awareness for SMB Decision Makers
• Recommend a positioning strategy for Prodigy Business
Solutions
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5
CM Methodology
Project Kickoff
Project Kickoff
Secondary Research
Secondary Research
In-Depth Interviews
In-Depth Interviews
Synthesis & Analysis
Synthesis & Analysis
Recommendations and
Conclusions
Recommendations and
Conclusions
• Set project schedule
• Clarify Objectives
• Brainstorming
• Define Deliverables
Identifying Key Markets
• Electronic Literature Search
• Identify Existing Studies
Interviewed Decision Makers &
Influencers in Small & Medium Sized
Business nationwide.
Building
Fact
Base
Develop Segment
Profiles via Case
Studies
W
eekly Status Meetings
Deliverables
• Executive Briefing
• Presentation
• 3 Case Studies
• Contact Database
• Interview Journal
Deliverables
• Executive Briefing
• Presentation
• 3 Case Studies
• Contact Database
• Interview Journal
Contact Sources: Interviewees were
randomly selected from Dun & Bradstreet’s
Database of U.S. Businesses from among
firms with under 100 employees and across
all industries as well as yellow pages.
Contact Sources: Interviewees were
randomly selected from Dun & Bradstreet’s
Database of U.S. Businesses from among
firms with under 100 employees and across
all industries as well as yellow pages.
6. Confidential
6
Contact List - 55 SMBs Interviewed
Size Holdouts (4) Novice (21) Sophisticated (30)
1-4
Employees
(16)
〈 Cunningham
Cleaners, David
Link, Principal
〈 Nick’s Shoe Repair,
Elizabeth
Santangelo
〈 Sacks Tailor Shop,
Richard Sabato,
Owner
〈 City Eyes Vision Gallery, Ted Joseph, Owner
〈 Hoosier Cleaners Steve Principal, Owner
〈 Kennedy Studios, Winnelle Kennedy, Owner
〈 Photographic Images Melinda Gordon,Owner
〈 Georgia Fast Tax, Inc.,Robert Daniel, President
〈 S/W Crafts, Marie Emmons, President
〈 Beauty Source Adolfo Alba, President
〈 Aavcom LTD., Bill Lawrence, President
〈 Professional Modification Services Estela Cruz, President
〈 A & O Engineering Inc., Greg Orphall, Mgr. Sales and Service
〈 Consumer Credit Counseling, Terry Grubb, Exec. Director
〈 Shattuck & Associates, Jeff Shattuck, Principal
5-9
Employees
(12)
〈 Baad & Associates, Randall Baad, Principal
〈 Aerospace Design and Development, Dr. H.L. Gier President
〈 Robert A. Schless & Co., Inc. Beau Schless, Principal
〈 Application Research, Inc, John Berner, President
〈 ARR Enterprises, Joy Gay, President
〈 Pollock Consulting, Jane Pollock, Principal
〈 Stevenson & Associates, Alan Stevenson, President
〈 Dicks Carpet One Rug Warehouse,Caryln Green,Store Mgr.
〈 Moran Ashton Funeral Home, Peter Ashton, Owner
〈 Cover Story, Craig Cousins, Owner
〈 Impact Specialty Advertising, Melinda Owens, President
〈 Kahn’s Pharmacy, Mel Kahn, President
10-19
Employees
(12)
〈 Chase Beck
Machine Corp,
Arthur Beck,
President
〈 The Technology Group, Dr. E.A. Coleman, CEO
〈 Sobol Bosco & Associates, Daryl Sobol, Tax Associate
〈 Sungro Chemical, Inc. Harold Igdaloff, President
〈 Strategic Alliances Group, Beatrice Kohn, Office Manager
〈 Hexter & Associates, Fran Richards, Office Manager
〈 Cislunar Aerospace, Dave Banks, CTO
〈 DYS Analytics, Yuvai Shimoni, President
〈 Geobiotics, Jay Pickarts, Technical Marketing Manager
〈 A Plus Machining and Manuf., Barbara Dutton, Office Mgr.
〈 Abatement Technologies, Inc., Jim Bowers, Marketing Mgr.
〈 Kushner & Co., Brenda Williams, Admin to Gary Kushner
20-49
Employees
(13)
〈 E.R. Roland & Associates, Wayne Smith, Principal
〈 Mulgrew Aircraf, Dave Mulgrew, Sales Manager / President
〈 Royal Plastics Manufacturing, Robbie Wimmer, MIS Manager
〈 Spero-Smith Investment Advisors, Andrew Smith, Pres.
〈 Public Affairs Information Service, Debra Brown, Exec. Dir.
〈 Marketing & Advertising Svcs Center, Gary Bacchetti, Pres.
〈 Dynamic Concepts, Inc., Mary Washington, Business Admin
〈 CE Corporation, Darin Gemereau, Eng. and Intranet Admin
〈 Metals Technology, Walter Hayes, CEO
〈 Benefit Management Design
〈 Rooney, Plotkin & Wiley, Williman Stevens, Managing Partner
〈 Access Direct, Steve Danoff,
〈 Advanced Data Systems, Nathan Lunney, Dir. Marketing
50+
Employees
〈 Picometrix, Inc. Rob Risser, CEO. 〈 Rayvern Lighting Supply Co. Inc., Helen Anderson, President
〈 Unicare Corporation, Matt Brent, Web Master
7. Confidential
7
Respondent Profile
Respondents by Company Size
1-4
27%
5-9
22%
10-19
22%
20-49
24%
50+
5%
Respondents
byLevelofSophistication
H o l d - o u t s
7%
Novice
38%
Sophisticates
55%
15
1212
13
3
4
2130
8. Confidential
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How did we characterize respondents?
Hold-outs: No Email, Access or Website
Novice: Email and Access Only
Sophisticate: Email, Access AND a Website
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10
High Level Findings
Prodigy Positioning
Purchase Decision Makers
Purchase Influencers
• Key driver is to be perceived as “on the
forefront”
• Heavily influenced by Friends & Business
Associates
• Key driver is to be perceived as “on the
forefront”
• Heavily influenced by Friends & Business
Associates
• <5 employees: Owners, Presidents and
CEOs are the IP Champions.
• >5 employees: Web-savvy employees,
Managers with designated web
responsibility.
• <5 employees: Owners, Presidents and
CEOs are the IP Champions.
• >5 employees: Web-savvy employees,
Managers with designated web
responsibility.
• <5 employees: the “easy-to-do-business-with” or “hassle-free”
ISP offering “wizard- or template-based web hosting solutions.”
• 20-49 employees: “a trusted, reliable and long-standing online
business solutions partner” offering “online business-in-a-box”
solutions.”
• “be on the forefront” “don’t be left behind” “join the club”
• <5 employees: the “easy-to-do-business-with” or “hassle-free”
ISP offering “wizard- or template-based web hosting solutions.”
• 20-49 employees: “a trusted, reliable and long-standing online
business solutions partner” offering “online business-in-a-box”
solutions.”
• “be on the forefront” “don’t be left behind” “join the club”
Best “Fit” Opportunities
• Low price, no risk Access for Holdouts
• Better service, better brand for Novices with
10-49 employees
• Low price, no risk Access for Holdouts
• Better service, better brand for Novices with
10-49 employees
• Internet literacy correlated closely with company size. Companies with more employees
were more literate. Internet illiteracy was generally confided to companies with < 5
employees .
• Respondents were eager for more information and were planning further investments in IP
services.
• Killer Applications continue to be Email and Internet Access.
• Pricing Sensitivity to upfront, setup costs: less price sensitivity for value-added services
Key Findings
11. Confidential
11
High Level Findings (continued)
Strong evidence that small businesses are adopting many of the same technologies to remain
competitive. However, more education is needed about the strategic importance of the Internet
through a basic, staged product offering (or Learning Path) are key to establishing and retaining
customers.
Top reasons SMBs use the Internet:
•Faster communications with customers, suppliers, and employees
•Access to information resources
•Better customer service
•Lower advertising costs
•Increased visibility and broader geographic marketing coverage via web site
•Improved competitiveness against other firms, both large and small
•Higher sales through expanded markets and new business opportunities
Top challenges to implementation:
•Finding the time to implement the solution, and the money to pay for it
•Adjusting business practices to accommodate new systems
•Choosing solutions that can easily accommodate growth
RankedRanked
OrderOrder
RankedRanked
OrderOrder
Implication to Prodigy: To resonate with SMBs messages should highlight Top
Reasons & Top Challenges.
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12
Business Improvement: Why do SMB decide to put up a Web Site?
Reasons for Going Online Reported by SMBs
30 30
25
20
15 15
0
5
10
15
20
25
30
35
New
Customers
New
Revenues
Improve
Customer
Service
Raise
Awareness
Extend
Reach
Productivity
ReasonsForGoingOnline
NumberResponses
Top 3 Reasons
SMBs
Go Online
Source: CM Interviews
To acquire new customers
To grow new revenue steams
To improve customer service
To acquire new customers
To grow new revenue steams
To improve customer service
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13
SMBs report a 3 Phase Adoption Process
Source: CM Interviews
Phase 1: ACCESS
Company doesn’t want
to be left behind the
times and goes online
to see what it’s all
about
Phase 1: ACCESSPhase 1: ACCESS
Company doesn’t want
to be left behind the
times and goes online
to see what it’s all
about
Phase 2: CONTACT
Company understands
the improved
communications with
customers and
vendors
Phase 2: CONTACTPhase 2: CONTACT
Company understands
the improved
communications with
customers and
vendors
Phase 3: COMMERCE
Company understands
strategic value of the
Internet & has
allocated resources to
execution of online
sales strategy
Phase 3: COMMERCEPhase 3: COMMERCE
Company understands
strategic value of the
Internet & has
allocated resources to
execution of online
sales strategy
SMB Internet Migration PathSMB Internet Migration Path
• New Revenue
• Better
Communications
• Information
• New Revenue
• Better
Communications
• Information
• Buy & Sell
• Email
• WWW
• Buy & Sell
• Email
• WWW
Activities
Benefits
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14
Who Are the Decision Makers?
IP Champion & Decision Maker
9
7
2 3 3
3
9
10
3
2
3
1
0
2
4
6
8
10
12
14
16
1-4 5-9 10-19 20-49 50+
Firm Size Category
NumberofFirms
Owner Designated Responbility Web Saavy Employee No Champ
Ad hoc Designated
No Clear Vision Clear Vision
Decision ContinuumSmall
Firms
Large
Firms
Source: CM Interviews
Key Decision Makers &
Influencers
• Smaller Firms: Owner
and/or President
• Larger Firms:
Designated
Responsibility
Key Decision Makers &
Influencers
• Smaller Firms: Owner
and/or President
• Larger Firms:
Designated
Responsibility
Owner is
Champion
Owner is
Champion
Sales &
Operations
are the
Champions
Sales &
Operations
are the
Champions
15. Confidential
15
How Much Do SMBs Typically Spend on Internet Services?
AverageMonthlyExpensesforSMBNovices
$20 $31 $29 $27
$650
$0
$100
$200
$300
$400
$500
$600
$700
1-4 5-9 10-19 20-49 50+
Firm Size Category
Dollars$
1-4 5-9 10-19 20-49 50+
Source: CM Interviews
Average ExpensesforSMBSophisticates
$22
$56
$516
$209
$240
$0
$100
$200
$300
$400
$500
$600
1-4 5-9 10-19 20-49 50+
Firm Size Category
Dollars$
1-4 5-9 10-19 20-49 50+
Novices typically spend
between $20-$55/mo. on
Internet Services. Company
size is not a factor
Novices typically spend
between $20-$55/mo. on
Internet Services. Company
size is not a factor
Sophisticates typically
spend between $22-
$240/mo. on Internet
Services. Company size is
a key factor.
Sophisticates typically
spend between $22-
$240/mo. on Internet
Services. Company size is
a key factor.
16. Confidential
16
Penetration of Internet Services by Sophistication Level
60%
33%
32%
0%
10%
20%
30%
40%
50%
60%
PercentageofEmployeesUsingTechnology
% w/ Computer % w/ Email % w/ Access
Technology Used
Novices: Technology Penetration
% w/ Computer % w/ Email % w/ Access
72%
66%
66%
62%
63%
64%
65%
66%
67%
68%
69%
70%
71%
72%
PercentageofEmployeesUsingTechnology
% w/ Computer %w/Email % w/ Access
Technology Use
Sophisticates: Technology Penetration
% w/ Computer %w/Email % w/ Access
Source: CM Interviews
% of Employees with Computers:
Hold-outs 42%
Novices 60%
Sophisticates 72%
% of Employees with Computers:
Hold-outs 42%
Novices 60%
Sophisticates 72%
% of Employees with Email &
Internet Access:
Novices 33%
Sophisticates 66%
% of Employees with Email &
Internet Access:
Novices 33%
Sophisticates 66%
17. Confidential
17
What do SMBs Desire as Applications?
51 51
37
30 30
20
10
0
10
20
30
40
50
60
NumberofResponses
Email
Access
E-Commerce
WebHosting
IPTelephony
IPFax
Backup/Recovery
TopApplicationRequirements
The Top
Application
Requirements
#1 Email & Internet Access
(tied)
#2 E-Commerce
#3 Web Hosting & IP
Telephony
#1 Email & Internet Access
(tied)
#2 E-Commerce
#3 Web Hosting & IP
Telephony
Source: CM Interviews
18. Confidential
18
What are SMB Preferences for Outsourcing of Web Hosting?
0
3
0
7
3
5 5 5
2
0
0
1
2
3
4
5
6
7
NumberofFirms
1-4 5-9 10-19 20-49 50+
Firm Size Category
Insourcing Vs. Outsourcing
Preferences
(n=30)
Internal Outsourced
Source: CM Interviews
Top 3 Reasons SMB
Novices & Sophisticates
Outsource IP/IT Services
• No time to develop or maintain internally
• No relevant skills sets or personnel
• Not enough knowledge of options, solutions
& technology
• No time to develop or maintain internally
• No relevant skills sets or personnel
• Not enough knowledge of options, solutions
& technology
• Smaller Respondents
are more likely to
outsource
• Larger Respondents
are more likely to
develop & manage
web sites internally
• Smaller Respondents
are more likely to
outsource
• Larger Respondents
are more likely to
develop & manage
web sites internally
19. Confidential
19
What are the Outsourcing & Pricing Preferences of SMBs?
1 1 1
2 2
3
1
3
1
5
0 0 0 0 0
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
NumberofFirms
1-4 5-9 10-19 20-49 50+
Firm Size Category
To Whom are Web Site Project Outsourced?
ISP Web Designer Web-Savvy Friend/Employee
N=20
N=20
ISPs, Web Site Design
Consultants, and Web
saavy friends are all
commonly used for
outsourcing.
ISPs, Web Site Design
Consultants, and Web
saavy friends are all
commonly used for
outsourcing.
• Template-driven Site Hosting Under $20/mon.
• RapidWeb Site $25/ Setup
$25/mon.
• Transactional Web Hosting $50/Setup
$100/mon.
• Design Services & Consultation $100/hour
Dial-up access not included in pricing.
• Template-driven Site Hosting Under $20/mon.
• RapidWeb Site $25/ Setup
$25/mon.
• Transactional Web Hosting $50/Setup
$100/mon.
• Design Services & Consultation $100/hour
Dial-up access not included in pricing.
Expected
Price Points
Top Web Site Creation Tools
# 1 ISP’s Site Template (50%)
#2 Front Page (35%)
#3 HTML Coding (15%)
Top Web Site Creation Tools
# 1 ISP’s Site Template (50%)
#2 Front Page (35%)
#3 HTML Coding (15%)
Source: CM Interviews
20. Confidential
20
How Satisfied are SMBs with their Incumbent Internet Solutions Provider?
“We are very satisfied with our ISP (a local phone company). We don’t have much of a need for the internet, just to
check email and do some minor research, and I wouldn’t even think of switching to another ISP because I don’t think
that they could offer us anything that we don’t already get – and for only $15 a month. So, A Ten”
(Greg Orphall, A&O Engineering, Sales Manager)
I love what’s been happening for me since I got this AOL account. I owe most of my new business to them. Satisfied?
Yes, I’m extremely satisfied!”
(Dr. E.A. Coleman, CEO, The Technology Group)
We don’t have any need for additional services, and Blue Grass is doing a everything that we could possibly expect
or even want for such a basic connection. We’re very satisfied with what there doing for us.”
(Wayne Smith, E.R Ronald & Associates, Architectural Design)
0
10
20
30
40
50
#
Respondents
Low High
Howsatisfiedareyouwithyourexisting ISP?
Respondents generally report high satisfaction with their ISPs but do not expect much .Respondents generally report high satisfaction with their ISPs but do not expect much .
Source: CM Interviews
21. Confidential
21
Top ISP Selection Criteria
51
45 45
40
30
27
25
20
15
13 12 11
0
10
20
30
40
50
60
#ofResponses
Availability
CustomerService
Reliability
Billing
Recommendation
TimeinBiz
Security
BreadthofOffering
Price
Audio/Video
TechSupport
FrontPage
Purchasing Criteria
Source: CM Interviews
Top 3 Selection
Criteria Reported
by all Size
Categories &
Sophistication
Levels
#1 Availability of Service
# 2 Customer Service &
Reliability of Service
#3 Billing Accuracy
#1 Availability of Service
# 2 Customer Service &
Reliability of Service
#3 Billing Accuracy
22. Confidential
22
Other research supports these findings
31%
39%
47%
47%
51%
59%
59%
63%
70%
85%
86%
88%
93%
96%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Reliability
Performance
TechnicalSupport
Price
KnowledgeableCustomerSupport
Full-serviceProvider
SecurityServices
ManagedConnectivity
Size/FinancialStabilityofISP
WebSiteHosting
Qualityofaccountmgmt.
NumberofyearsISPhasbeeninBusiness
Audio/VideoStreaming
Value-addedServices
Reliability, Performance, Support & Price are the top swing factors when selecting an ISP
Source: TeleChoice Survey of 1,308 network and IT managers.*
23. Confidential
23
Customer Service/Support was the #1 Internet Application for SMBs
40
35
25 25
16
0
5
10
15
20
25
30
35
40
Numberof
Responses
Customer
Support
E-Commerce
Communicating
w/Vendors
Communicating
w/Customers
LAN
ApplicationArea
TopApplicationsConsideredVeryImportanttoContinuedBusiness
Success
Top Applications
Reported by all SMB
Size Categories &
Sophistication Levels
#1 Customer Support &
Service
# 2 E-Commerce
#3 Communication w/
Vendors & Customers
#1 Customer Support &
Service
# 2 E-Commerce
#3 Communication w/
Vendors & Customers
Source: CM Interviews
25. Confidential
25
What are the Favorite Sources of Information about Technology?
30
40 40
35
0
5
10
15
20
25
30
35
40
Numberof
Responses
DirectMail
Catalogs
Trade
Publications
Friends
Business
Associates
Source
Favorite Sources of Information
Source: CM Interviews
Favorite & Most
Trusted Sources of
Information about
Technology for all
SMB categories
# 1 Friends & Trade
Publications
# 2 Business Associates
# 3 Direct Mail
# 1 Friends & Trade
Publications
# 2 Business Associates
# 3 Direct Mail
26. Confidential
26
Bundling Opportunities for Prodigy
Service
Elements
Near - Term
(<12 months)
Mid - Term
(12-24 months)
Long - Term
(> 24 months)
Email X X X
Web Hosting X X X
Remote Backup
& Disaster
Recovery
X X X
IP Fax X X X
Intelligent
Messaging X X
IP Video X X
IP Telephony X
VPN X
Implication to Prodigy:
Partnering will be essential to meet the needs of these customers
Implication to Prodigy:
Partnering will be essential to meet the needs of these customers
Source: CM Interviews
28. Confidential
28
Conclusions and Recommendations
For Holdouts:
• Swiftly provide seminars, edutorials and special offers focused on Access and Email as the holdout market is ready to develop.
• Provide “ in the box trials” with major PC manufacturers.
• Form distribution partnerships with Industry Associations, Office Supply Stores, and Buying Clubs e.g. Costco or Sams.
For Novices:
• Target Novices in the 10-49 Employees Size Range
• Offer hosting bundles to induce Novices to switch ISPs.
• Establishing a trust relationship by providing a Web Roadmap and becoming a trusted source of information.
• Position as the user-friendly “Small Business Internet Solutions Partner”
• Establish an online trading community and value network that drives traffic from Prodigy Internet accounts onto a “Prodigy Mall” featuring
web hosting SMB accounts
• Develop a “unified messaging” infrastructure to sell into PAIN (E-mail & communications overload)
For Sophisticates:
• Eventually SMBs will join the E-commerce Bandwagon. Prodigy will need to support this trend to be able to retain these accounts.
• Small business are starting to be approached by DSL and cable modem solutions that offer near T-1 speeds for between $40-100/month.
Prodigy will need for formulate a response to this.
Solutions Pricing
• Short-term (6mon.): RapidWeb 2-5 pp. site, 10 Pop E-mail and 2-hour consultation free for 2 months and priced at $50/monthly thereafter
• Long-term (12 mon.):Unified Communications Strategy: “UNIFIED MESSAGING BUNDLES” have the greatest appeal to SMBs with “E-mail &
Voice mail Nightmares”
Alliances
• Partner aggressively with ISVs, OEMs and Telcos to jointly develop & co-market integrated online office solutions
Positioning
• Prodigy should position itself as the “easy-to-business-with” or “hassle-free” ISP offering “wizard- or template-based web hosting
solutions.”
• Prodigy should position itself as “a trusted, reliable and long-standing online business solutions partner” offering “online business-in-a-
box” solutions.”
