Tuesday, September 25, 2007

Level 3 Communication Question #4- Brendan Stribula

The emergent strategies of Level 3 have been to purchase the two companies, Software Spectrum and Corporate Software. These two companies sell, install, and do the maintenance for software made by companies. These two companies serviced nearly 9,000 people. Originally it was not in the plan to purchase these companies but with the possible threat of bankruptcy on the horizon, Level 3 had to act fast. By purchasing these companies, Level 3 could use its fiber-optic network to not only dispense but maintain the upkeep of the software. This would in fact lower their own costs, and strengthen the views of the company by investors.

Another strategy made by Jim Crowe was to acquire one of its bankrupt competitors for a fairly low price in order to consolidate the industry and get rid of competitors. The market was changing, and therefore Crowe's strategies changed as well as his company decided to offer Voice over Internet Protocol services to its customers.

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