Jim Crowe’s planned strategy is unrealized in present time. Crowe believed that internet traffic was growing by 1,000 percent when in actuality it was growing 100 percent a year. Many of the companies failed and went bankrupt, but Crowe’s company did not because of large sums of money thrown back into the company. With this abundance of money, Crowe decided to invest in Software Spectrum and Corporate Software two companies that helped secure Level 3 Communications and ensure investors and stockholders to have faith in their company.
Jim Crowe still believes that in the end his dream of huge traffic on the internet and the necessity for the amount of fiber optics his company is able to supply will bring him the same if not more of a gold rush when he owned MFS’s UUNet. So even though Crowe’s strategic planning didn’t work out at first, the company of Level 3 Communications still believes Jim Crowe’s “original vision will be vindicated”.
Monday, September 24, 2007
Level 3 communications #1- Michael Garland
Jim Crowes had a very clear strategic plan. He felt that "he was convinced that the growth of the internet was the mother of all business opportunities. The goal was to raise money, rapidly build a high-capacity fiber-optic network. The company was funded by a number of wealthy investors."(Hill pg23) Crowe felt that demand was going to take over supply and stated that a growth rate was over 1,000 percent a year.
Crowe had a shift in strategy. The shift "involved the purchase of two software distribution companies."(Hill) Both companies specialized in selling, stalling and maintaining software. The logic behind this shift was that "Level 3 xould use its fiber-optic network to distribute a nd maintian the software, as opposed to doing manually. This reduced cost (Hill, pg 23)
Crowe had a shift in strategy. The shift "involved the purchase of two software distribution companies."(Hill) Both companies specialized in selling, stalling and maintaining software. The logic behind this shift was that "Level 3 xould use its fiber-optic network to distribute a nd maintian the software, as opposed to doing manually. This reduced cost (Hill, pg 23)
Level 3 Communications
I think that Crowes approach to take over the fiber optic network market was a very smart idea because the demand for the product was so high, and still on the rise. Crowe's strategy to basically corner the market and force other major telecommunications and internet providers to help with the creation of this network, that links throughout all major corps in every major city in the United States is genious in the sense of strategic business planning. Even though some of the numbers of the rise of the market weren't completely correct, his business strategy for a market with high demand can definetly be a successful plan.
Level 3 Communications Question #3- Karli Mae Ferris
I believe that their planned strategy was intended because Crowe was a "big advocate of strategic focus". Crowe knew what he was doing in the beginning and even after the market fell and most of his competitors went bankrupt, he still had a strategy. He knew that acquiring the companies Software Spectrum and Corporate Software would be a highly strategic move for his company because it showed his investors that he has long term plans for his company that he intended to use. To this day he still believes in his original vision and knows that his company will be successful in the future because of his strategies.
Level 3 Communications Question #2- Jenn Omasta
Why was level 3 communication able to raise so much capital?
In 1998 the company had gone public and immediately started building a fiber-optic network. This allowed the company to raise $13 million dollars by 2001, most of this money was in the form of debt. The goal of this plan was to raise money and rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut pieces to attract demand from major users of fiber optic network, including corporation, internet networks, etc.
Another way that the level 3 communication company was able to raise so much money was through the internet researcher at AT&T. He was able to show that the demand for internet accesses was going up 1,000percent a year. His prediction was right and in 2002 less that 3 percent of the fiber that had been laid in the ground was actually being used.
In 1998 the company had gone public and immediately started building a fiber-optic network. This allowed the company to raise $13 million dollars by 2001, most of this money was in the form of debt. The goal of this plan was to raise money and rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut pieces to attract demand from major users of fiber optic network, including corporation, internet networks, etc.
Another way that the level 3 communication company was able to raise so much money was through the internet researcher at AT&T. He was able to show that the demand for internet accesses was going up 1,000percent a year. His prediction was right and in 2002 less that 3 percent of the fiber that had been laid in the ground was actually being used.
Level 3 Communications Question # 1 –Charles Handy
The planned strategy of Level 3 Communications during the early 1990s was fairly simple. According to Jim Crowe, the growth of the Internet was the mother of all business opportunities.” With this in mind, Crowe set out to “raise money, rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut prices to attract demand from major users of fiber-optic networks.” This would be possible, Crowe assumed, because he was under the belief that demand was going to “far outstrip supply” and that network growth was over “1,000 percent a year.”
The second part of Crowe’s Level 3 Communications strategy was to work exclusively for “service providers and corporations.” These clients would be the one to utilize Level 3’s fiber-optic network more than any other potential client, which helped with Crowe’s financial model because the profits that would be garnered from these clients would be equal to or leveraged against the volume and once the built in costs were covered, money would come rolling in.
The second part of Crowe’s Level 3 Communications strategy was to work exclusively for “service providers and corporations.” These clients would be the one to utilize Level 3’s fiber-optic network more than any other potential client, which helped with Crowe’s financial model because the profits that would be garnered from these clients would be equal to or leveraged against the volume and once the built in costs were covered, money would come rolling in.
Level 3 Communications Question #1 - Lindsy Girard
Jim Crowe's planned strategy was to start up a fiber optic network. He wanted to do it because the chief scientist O'Dell said that the network traffic was doubling every 100 days which was 1,000% a year. In doing this Crowe believed that there was no way his plan could go wrong.
The plan that Crowe had, which was to raise funds and build a high capacity network then cut prices to attract demand from high usage customers such as large corps, but it didn't work because O'Dell was wrong about the numbers, they weren't even close to 1,000% a year. Because of this Crowe saw his company almost go out of business.
The plan that Crowe had, which was to raise funds and build a high capacity network then cut prices to attract demand from high usage customers such as large corps, but it didn't work because O'Dell was wrong about the numbers, they weren't even close to 1,000% a year. Because of this Crowe saw his company almost go out of business.
Level 3 Communications Question #2 - Steve Moore
Level 3 Communications was able to raise so much capital by using a clear strategic plan. CEO Jim Crowe knew exactly what he was doing when in 2001, Level 3 Communications raised nearly $13 billion dollars, which came in the way of debt. It seems that Crowe had been researching the field of fiber-optic networks and found that there was a large demand in that sort of market. He aimed his focus on the major users of fiber-optic networks, including several corporations, AOL, and other telecommunications companies. The plan that was put in place is explained in this quote, "The goal was to raise money, rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut prices to attract demand from the major corporations, Internet providers, and telecommunications companies.
Jim Crowe and his Level 3 Communications company was nearly run out of business by other companies that were entering the business with almost the same exactly plan to gain capital. As I see it Crowe made this best decision yet when he purchased two software distribution companies that carried over 9,000 corporate clients. Level 3 was able to make progress and move forward into 2004, when they had the idea to use its network to offer Voice over Internet Protocol services to its customers. Crowe knew how to run a business and with the risks the took he rebuilt Level 3 Communications into a powerhouse in its industry.
Jim Crowe and his Level 3 Communications company was nearly run out of business by other companies that were entering the business with almost the same exactly plan to gain capital. As I see it Crowe made this best decision yet when he purchased two software distribution companies that carried over 9,000 corporate clients. Level 3 was able to make progress and move forward into 2004, when they had the idea to use its network to offer Voice over Internet Protocol services to its customers. Crowe knew how to run a business and with the risks the took he rebuilt Level 3 Communications into a powerhouse in its industry.
Level 3 Communications Question #2-Pete Wilson
Level 3 Communications was able to raise so much capital due to the fact that Jim Crowe was so smart and saw the potential opportunity of Level 3 in which he could established a company to build a state of the art fiber-optic network. Level 3 quickly raised 3 billion dollars. By 2001 Level 3 raised 13 billion dollars. This was because Crowe had a very clear strategic plan. The goal was to raise money, rapidly build a high capacity fiber-optic network that linked major cities in the United States, and then cut prices to attract demand from major users of fiber-optic networks, including Internet service providers such as AOL.
Crowe was also a big advocate of strategic focus, believing that Level 3 should concentrate exclusively on carrying Internet traffic for service providers and corporations. The financial model was straightforward; because most of the costs of the business were fixed (the costs of building out the network), profitability would be highly leveraged to volume. Once the fixed costs were covered, it would be like printing money. Basically, Crowe was very business savy and created this very productive network in which millions of businesses and people around the world could use in order to communicate with one another.
Crowe was also a big advocate of strategic focus, believing that Level 3 should concentrate exclusively on carrying Internet traffic for service providers and corporations. The financial model was straightforward; because most of the costs of the business were fixed (the costs of building out the network), profitability would be highly leveraged to volume. Once the fixed costs were covered, it would be like printing money. Basically, Crowe was very business savy and created this very productive network in which millions of businesses and people around the world could use in order to communicate with one another.
Level 3 communications question #2- Jeff Scott
Level 3 communications has a company funded by a number of wealthy investors, including Crowe. Crowe was CEO and level 3 quickly raised $3 billion achieving the goals Crowe had. The biggest goal was to raise money, rapidly build a high-capacity fiber-optic network that would link major cities in the United States, and then cut prices to attract demand from major users of fiber-optic networks, including corporations, Internet service providers such as AOL, and traditional telecommunications companies.
Crowe's strategic shift involved the purchase of two software distribution companies- software Spectrum and Corporate Software that specialized in selling, installing, and maintaining software made by companies such as Microsoft on the PCs and servers of some 9,000 corporate clients. The logic underlying the acquisitions was that level 3 could use its fiber-optic network to distribute and maintain the software, as opposed to doing that manually, thereby reducing costs.
Crowe's strategic shift involved the purchase of two software distribution companies- software Spectrum and Corporate Software that specialized in selling, installing, and maintaining software made by companies such as Microsoft on the PCs and servers of some 9,000 corporate clients. The logic underlying the acquisitions was that level 3 could use its fiber-optic network to distribute and maintain the software, as opposed to doing that manually, thereby reducing costs.
Level 3 Communications Queston #1- Jason Shaker
Jim Crowe's planned strategy of level 3 communicatons in the late 1990's was to go public and immediately start buiding its fiber-optic network. The reason that he wanted to do this is because a UUNet's cheif scientist Michael O'Dell stated that nework traffic was doubling every one hundred days. O'Dell went on to say that there was not enough fiber-optic capacity to go around and that "demand will far outstrip suply for the foreseeable future."
Crowe quickly raised $3 billion by 1998 which was when Crowe went public. By 2001 Level 3 raised some $13 billio, much in the form of debt. The goal was to raise money, rapidly build a high-capacity fiber optic network that linked major cities in the United States, and then cut prices to attract demand from major users of fiber-optic networks, including corportations, Internet service providers such as AOL, and traditional telecommunicatons companies.
Crowe quickly raised $3 billion by 1998 which was when Crowe went public. By 2001 Level 3 raised some $13 billio, much in the form of debt. The goal was to raise money, rapidly build a high-capacity fiber optic network that linked major cities in the United States, and then cut prices to attract demand from major users of fiber-optic networks, including corportations, Internet service providers such as AOL, and traditional telecommunicatons companies.
Level 3 Communications Question #3- Jason Grier
Crowe's strategy for Level 3 Communication is unrealized because Crowe "was able to use the acquisitions to convince investors that Level 3 still had a viable long-term strategic vision." Even though the original strategy failed, which was the purchase of two companies -- Software Spectrum and Corporate Software-- that specialize in selling, installing and the maintaining software, the latter down the road would be a plus because the investors were convinced that it would work. The strategy will also work because Level 3 bought Genuity for less then $300 million, which means that Level 3 now has the customers from Genuity. So everything that has happened was almost unintentional and it was not planned but it ended up working in the end.
Level 3 Communications Question #4- Joe Boulanger
The latest strategy for Level 3 Communications has been the purchasing of two software distribution companies. These companies are Software Spectrum and Corporate Software. They specialize in selling,installing, and maintaining software made by companies. The reason why Level 3 purchased these companies was because Level 3 could use it's fiber optic network to distribute and maintain the software, as opposed to doing that manually, thereby reducing costs.
By making these two acquisitions Crowe was able to convince investors that Level 3 still had a viable long term strategic vision. Since Level 3 made a great profit in the purchase they were able to buyout one of their competitors Genuity for under $300 million, and by doing this Level 3 brought on Genuity's customers and more business for themselves. This new way of going about their strategic planning goes along with their original ideas. The reason why this company was started and any business for that reason is to make a profit, and the new steps that Level 3 is taking is making the competition run for their money along with making a profit.
By making these two acquisitions Crowe was able to convince investors that Level 3 still had a viable long term strategic vision. Since Level 3 made a great profit in the purchase they were able to buyout one of their competitors Genuity for under $300 million, and by doing this Level 3 brought on Genuity's customers and more business for themselves. This new way of going about their strategic planning goes along with their original ideas. The reason why this company was started and any business for that reason is to make a profit, and the new steps that Level 3 is taking is making the competition run for their money along with making a profit.
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