- Strategic Management Inputs
External Environment
The telecommunications industry is changing dramatically and has become increasingly competitive as a result of deregulation, convergence of services and capabilities, new technologies and global industry consolidation. The OSS industry is worth over $23 billion. This makes it a very lucrative industry in which to operate. MetaSolv is fortunate in that there are very few rivals capable of offering the complete OSS solution that it does. The deregulation of the telecommunications industry in America and worldwide opened the door to many opportunities. The US Telecommunications Act of 1996 changed the Telecommunications landscape to such an extent that it created overwhelming growth in business for MetaSolv, who at that time, was the only company offering a commercial product that included the full array of service expertise with it. This unexpected windfall together with their careful and consistent environmental scanning caused an unprecedented jump in the earnings of MetaSolv from an estimated $20 million to $43 million. This allowed them to expand rapidly to retain their leading position which could not have been sustained by local growth.
Segments of the General Environment
The vastness of the telecom industry was a large factor in determining which segment of the market MetaSolv targeted. Having almost doubled their earnings, MetaSolv created opportunities to enable them to remain market leaders. “We base our product strategy on an analysis of market requirements, competitive offerings and projected return on investment” showing that an “outside-in” strategy is being actively pursued at corporate level. They have focused on the OSS niche market.
The Demographic Segment
MetaSolv’s customer list includes all sizes of service providers from large corporations to new market entrants. MetaSolv initially started off by creating different models for different companies, but soon realised that the telecom industry’s OSS segment was a niche and large enough to sustain significant future growth at that time. Significant consolidation of customers has seen the customer base narrow with less small companies and more large conglomerates arising. This meant fewer customers and smaller margins as large companies squeeze margins down. Furthermore, MetaSolv relies on a limited number of customers for a significant portion of its revenue which makes it vulnerable to changes in its customers’ demographic mapping.
The Socio-Cultural Segment
Since going global, MetaSolv has had to face several different sociocultural issues in the different countries in which it operates, such as language barriers, the impact of the recession outside the US and the acquisition of suitably skilled labour. To counter these issues, MetaSolv has joint offices with strategic alliance partners or acquired companies in foreign countries that are already established and employing local people. Additionally, communication infrastructures in foreign countries are different from the communication infrastructure in the United States. Support of the software can come from regional offices in the different countries, but the core product support will be supplied directly from the head office in the US.
The Technological Segment
MetaSolv is competing in a rapidly evolving, fast moving, market for high tech products that are highly imitable. The barriers to entry are high mainly due to the high costs of R&D and the time it takes to develop superior software. Exit barriers are low as buyers can easily move to another software application if need be. MetaSolv has, therefore, patented its product and added enhancements to the software, whilst at the same time, acquiring other related software modules, which make it one of the most comprehensive OSS product portfolios available. This effectively increases the growth phase of their products.
The Economic Segment
“The communications market is changing rapidly, and failure to anticipate and react to the rapid change could result in loss of customers or wasteful spending.“ Over the last decade, the market for communications products and services has been characterized by rapid technological developments, evolving industry standards, dramatic changes in the regulatory environment, emerging companies and frequent new product and service introductions. MetaSolv’s future success depends largely on their ability to enhance existing products and services and to introduce new products and services. Moving into the international market has thus far produced minimal revenues and MetaSolv intends to expand their operations in the future by opening more international offices. International expansion may be more difficult or take longer due to several issues, discussed under International Strategy.
The Political / Legal Segment
By moving into the international arena, MetaSolv has exposed itself to various levels of political and legal issues, differing according to country. These issues are country specific ranging from tax laws, company registration polices, revenue disclosure, exchange rate policies, etc, to name a few. Most of these issues will be outside its control and compliance is mandatory.
Industry Environment Analysis
Threat of New Entrants
MetaSolv has targeted the OSS segment of the telecommunications market where it is considered a giant and leader. Even so, MetaSolv is still exposed to the threat of new entrants from:
- New competitors or alliances among competitors may emerge and rapidly acquire significant market share;
- Existing suppliers within the industry who are not actively pursuing the OSS segment of the market could, in future, focus their attention in this area;
- By going global, MetaSolv is further exposed to threats of new entrants in foreign country markets.
A barrier to entry is the significant consolidation in the industry which can reduce the number of potential customers. This market is reasonably saturated already.
Bargaining Power of Suppliers
As MetaSolv designs its own software, suppliers do not have a major impact on their business at this stage and pose a relatively low threat. The use of PowerBuilder is a potential problem, since Visual Basic has overtaken PowerBuilder as the product of choice. The continued existence of PowerBuilder as a product is under question.
Bargaining Power of Buyers
The buyers that MetaSolv deal with are mainly corporate buyers who are generally characterised by their size and have a great deal of purchasing power and leverage in negotiations. These buyers are extremely cost conscious. The communications industry has experienced significant consolidation with a potential decrease in customers in the future. This increases the level of competition in the industry and could create pressure on prices and margins achieved. MetaSolv has sought to address this situation by continuing to market their products and services to new customers and by working with existing customers to provide products and services that remain competitive. A weakness of MetaSolv is that they rely on a limited number of customers for a significant portion of their revenue. In 1999, the ten largest customers accounted for approximately 44% of their total revenue, with Qwest Communications accounting for 13% of the total.
Threat of Substitute Products
Many customers are consolidating and producing in-house software products which are not only in direct competition with MetaSolv products, but are likely substitutes for their products. While these alternatives appear attractive, many of these firms are not adequately equipped to deal with problems that arise with the systems along the way and end up seeking assistance from specialists such as MetaSolv. Nevertheless, this is a growing trend in the industry. If MetaSolv does not actively research and develop technology in accordance with customer requirements, their profitability will suffer since a small portion of the telecom industry make up a major portion of their revenues.
Intensity of Rivalry among Competitors
MetaSolv’s software is considered superior to their competitors and it has become the OSS software vendor of choice. However, as the telecom industry grows, so too does the demand for telecom software solutions. Competition from larger or emerging competitors could result in loss of market share. Telecommunication vendors such as Ericsson, Nokia and Siemens et al, provide turnkey solutions that include OSS products to network operators. This provides a “one-stop” solution to the network operators that could potentially exclude MetaSolv, therefore losing significant business. The consolidation in the industry will intensify the competition even further.
Internal Environment
“Few firms can consistently make the most effective strategic decisions unless they can change rapidly.” MetaSolv has a history of innovation. The move to extend the firms’ growth by converting from a privately owned company to a publicly held company was a natural progression for expansion and growth to further cement their first mover status in the market. Senior management has recently been restructured in anticipation of progress to the next step in their growth and expansion policies.
Resources, Capabilities, Core Competencies and Competitive Advantages
Tangible Resources
MetaSolv Tangible assets are difficult to define as their product is software.
Intangible Resources
Intangible resources are the MetaSolv brand name, their R&D efforts, their people and culture. MetaSolv has a history of maintaining a strong corporate culture. MetaSolv believes that promoting its culture will lead to the company gaining and sustaining a competitive advantage. Research and Development is given substantial focus as MetaSolv sees this as a major resource. It they are not able to keep up in a rapidly changing environment, they might lose market share which will affect their profitability. Most of MetaSolv’s resources are intangible due to the nature of the market they operate in.
Capabilities
“The glue binding an organization together, capabilities emerge over time through complex interactions among tangible and intangible resources.”
Core Competencies
The evaluation of the resources is done by using the VRIO test (Functional Capability and Resource Analysis). This means that the firm’s resources are measured against its value, rareness, inimitability and the capability of the organization to take advantage of valuable, rare and inimitability resources. It is difficult to find many resources which are rare since the employees and technology are imitate-able as people can be replaced easily and technology can become outdated. MetaSolv’s core competency is their specialist knowledge of the OSS industry and their ability to provide superior state of the art technology.
Competitive Advantages
MetaSolv focuses on its key strategic initiatives, of further expanding its global market focus and delivering comprehensive service fulfillment solutions to gain competitive advantages. The company needs to leverage its core strengths, which include:
- Established Brands – MetaSolv Solutions™ (previously TBS™) is a well recognized and respected brand;
- Promotion Ability – MetaSolv’s extensive sales and marketing team work together closely to ensure maximum exposure of their products to customers;
- Culture of Innovation – MetaSolv is the only supplier of a fully comprehensive solution to service providers, with no close rivals;
- A strong, diverse customer base and product portfolio.
Value Chain Analysis
“Value chain analysis allows the firm to understand the parts of its operations that create value and those that do not.” The main activities of the value chain are primary and support functions, which, when analysed, allows companies to identify opportunities to create and capture value and eliminate unnecessary costs in their structure.
Inbound Logistics
Since MetaSolv sells a software product, inbound logistics does not impact them in a major way.
Operations
The main aspect of operations is the R& D division of the company where ideas are converted into highly effective software offerings to customers. Product testing is also incorporated in this segment. Information among programmers, contractors and alliance partners is exchanged so that customer deadlines are met. Marketing efforts on developing product and market strategies provide direction on target market requirements. “We base our product strategy on an analysis of market requirements, competitive offerings and projected return on investment.”
Outbound Logistics
The actual transaction between the customer and MetaSolv’s implementation team are initiated and specific agreements and contract terms are drawn up. There is an increase in the collaborative work between Metasolv and the customer in the rollout of the software. MetaSolv uses an extremely efficient File Transfer Protocol (FTP) server to ensure that software updates are available for downloading to customers. This expedites the process as compared to shipping CD-ROMs with software to customers around the world. Training is provided to customers to correctly use and implement the new software installed. Implementation can take between three to nine months.
Marketing and Sales
Extensive Sales and Marketing efforts are made. MetaSolv markets and sells their software directly through their highly qualified sales force that pursues leads generated from contacts made through telemarketing, trade shows, seminars, conferences, market research, the Web site, customers and partners. The sales force is further complemented through alliances with systems integrators. These alliance partners give the sales force a global reach and provide significant leads and referrals. These leads are followed up and intensive presentations are made to the potential customer where sales and marketing efforts are directed to potential customers. Much of the work in the sales and marketing arena is done via the internet and MetaSolv website.
Service
The Customer User Group maintains an active enhancement-ranking process, by which members continually establish priorities for software improvements and evaluate the enhancements that MetaSolv delivers. Product managers are active in numerous technology and industry forums. After sales service is also done through on-line support desks, e-mail and telephone facilities. If the problem cannot be solved, then field representatives go out and personally work with the customer until the problem is solved.
Support Activities
MetaSolv should access support activities that do not add value to their core competencies. These should be outsourced to save time and money. Activities such as Procurement and auxiliary activities could be outsourced without affecting the goal of competitive strategy which is to create customer value in excess of the costs of delivering that value. On the other hand, technological development such as R&D is an integral part of the company and is one of its core competencies. MetaSolv spends a large portion of its revenue on this aspect of the company. It has spent, $29.6 million, $33.3 million and $31.3 million in 2003, 2002 and 2001 respectively on R&D.
The integration of the value chain can lead to increases in revenue, higher customer satisfaction, new opportunities to offer packaged products/services, fewer defects, better visibility/control, and many more benefits.
Strategy Formulation
Business Level Strategy
A firm’s customers are the foundation of a successful business-level strategy. Customers are examined using three issues: Who, What and How. In evaluating the “who”, MetaSolv essentially has two diverse sets of customer groups, namely; local customers in the US and international customers around the world. The users’ (service providers) needs (the “what”) are for a software solution that can automate their business processes and the core competencies used (the “how”) enable them to manage their resources effectively thereby reducing cost and providing superior service.
MetaSolv has adopted a strategy of growth and expansion in both their markets and products, locally and globally as they realize that the local markets may no longer sustain growth and expansion. They are focused on the OSS niche market. As stated earlier, Metasolv began with one core product but soon realized it would not sustain their strategies for growth by itself, so they actively pursued other software solutions that added value and enhanced the MetaSolv Solution™ Software. Their correct reading of the market has seen their range of products as one of the most comprehensive portfolios of service fulfillment solutions available.
With recent growth and expansion into global markets, the strategy followed by MetaSolv is to acquire several leading branded products. Furthermore, MetaSolv's worldwide network of partners helps extend their capabilities and enable them to provide best-in-class solutions. MetaSolv has developed its leadership position by continuously enhancing its open and flexible software to manage the complexities that rapid technology changes have created.
By applying customer segmentation analysis and Ansoff’s Matrix, we can see that MetaSolv has applied three of the four strategies: market penetration, market extension and product development. MetaSolv has numerous internal strengths with a few internal weaknesses. By using the SWOT analysis, it can be seen that this supports an aggressive strategy. MetaSolv has been extremely aggressive by acquiring new products to extend its market and acquiring companies to penetrate international markets and gain customers. Except for the cells on diversification, we can find examples that fit all other cells of the 3X3 Growth Vector Market Analysis.
MetaSolv should either use the BCG Growth / Share Portfolio Matrix or the GE Business Screen Matrix to determine on which of its products money should be invested, which should be “milked” and which they should divest.
Competitive Rivalry and Competitive Dynamics
MetaSolv is a relatively new company, in the telecoms arena, if one looks at their competitors. However, there are several factors that provide MetaSolv with a competitive advantage, including:
- Its focus on the OSS niche market;
- The breadth and depth of their software offerings;
- The quality and performance of their products;
- Exceptionally high-quality customer service;
- The ability to implement and integrate solutions in record time;
- The overall value and benefits the software provides to customers;
- The references given by customers.
Trends that have a profound effect on the competitive dynamics of the market are:
- Backward vertical integration, convergence and consolidation by large firms who may develop their own in-house software;
- Longer established larger competitors with highly recognised brands;
- Greater leverage and bargaining power by buyers resulting in lower margins;
- Changes in regulations in the communications industry.
MetaSolv has implemented several steps to counter what their competitor analysis has discovered by offering customers a unique three-tier technology design that provides: Flexibility; Scalability and Data Integrity. Sales and Marketing teams market and sell their software directly to potential customers. Their efforts are complemented by alliances with strategic partners. As most of its sales have been in the US, Metasolv intends to expand its sales and marketing teams to gain more customers.
Corporate-Level Strategy
“When a firm chooses to diversify beyond a single industry and to operate businesses in several countries, it uses a corporate-level strategy of growth and expansion to target international markets.” MetaSolv has adopted this approach to grow and expand globally. On becoming a publicly listed company, the decision made at corporate level was one of aggressive market penetration, market development and product development. To expand locally and internationally, MetaSolv’s strategy was to acquire industry leaders with strong brand and market profiles and add them to the MetaSolv stable. MetaSolv bought several firms which added a number of customers worldwide and brought mature established relationships with it.
In the past MetaSolv had adopted a low level of diversification where a major part of its revenue was from a single business or product. By applying the growth vector analysis, MetaSolv’s restructuring policies and strategies adopted have been quite aggressive to achieve high levels of market penetration, market development and product development. There are a number of motives for MetaSolv to follow this strategy, including market penetration and transferring core competencies, thereby achieving economies of scope. Probably the biggest motives were for efficient internal capital allocation and to create further shareholder value.
By applying the Product Life Cycle Analysis (S-Curve Technology Life Cycle Analysis) we realize that in a rapidly evolving industry, products are being constantly upgraded to keep up with technology enhancements and products are in various different levels of their life cycle. In order to maintain growth MetaSolv has already vigorously and heavily invested in people and innovative research and development technologies to continue to improve its product offerings. One of the most important strategic issues in technology is choosing the correct technology at the right time. It is absolutely vital for firms to both increase investment in R&D while simultaneously employing S-curve analysis for two reasons:
- To identify the firms current position on the S-curve in order to isolate R& D opportunities for efficiency improvements in product and service performance;
- To turn the threat of discontinuity into R&D opportunities for effective improvements by identifying potentially superior S-Curves represented by new technologies.
Another technique that could be used by MetaSolv is patent analysis since most of its products have trademarks, copyright or patents. This would give them an indication of their competitiveness in the OSS markets by checking how many patents their competitors have. Having their technology patented is rewarding themselves with the assurance that their R&D efforts will be recognised and difficult for competitors to copy.
Acquisition and Restructuring
Using the Grand Strategy Selection Matrix, MetaSolv is positioned in quadrants 1, 3 and 4, which support MetaSolv’s growth strategies. All 3 Quadrants encourage external acquisition, or mergers, for resource capabilities and to maximise strengthen through, vertical integration, joint ventures or market and product development and innovation. The value and benefits of acquisitions to MetaSolv were:
- Expanded product portfolio to enhance existing core product;
- Added significant number of new customers in the US and globally;
- MetaSolv acquired mature relationships with some of the world’s leading system integrations firms through acquisitions as well as highly skilled software innovators;
- Increased revenue and expanded sales worldwide;
- Increased penetration of large communications service providers;
- Acquisition of almost 40% of the worlds top 100 communications providers as their customers;
- Improved long-term growth opportunities and reduced staff by eliminating consolidating work roles.
Acquisition of Lat45 Information Systems Inc (2001), Nortel Networks OSS (2002) and Orchestream (2003) allowed MetaSolv to use the technology gained to extend the functionality of MetaSolv solutions and strengthened the worldwide scope of product sales and services. Using the Model of Grand Strategy Clusters Matrix, one can see that MetaSolv took the opportunity of rapid market growth globally and its strong competitive position to focus on concentrated growth via market development, product development or a combination of both in some instances. This shows they were both externally and internally oriented. In order to maximize its strengths, from an external focus, MetaSolv has applied horizontal integration. They have acquired companies such as Nortel OSS and Orchestream that will enhance their current product portfolio. To overcome its weaknesses, from an internal focus, MetaSolv increased its R&D efforts on product development.
Curtis Holmes added that the acquisition was more about customers than the product portfolio. “In the current environment, those folks that have access to the customers and the right relationships with those customers are the folks that will win in the marketplace and that’s the approach we’re taking here,” he said.
When MetaSolv first announced its intention to restructure in 2001, they reduced their workforce by approximately 100 people, and closed certain offices. The restructuring was in response to lower software license bookings and the expectation of lower revenues in 2001. Additional restructuring during 2002 was to align with market conditions and eliminate redundant operations as a result of its acquisitions. The reasons for implementing the reduction are to maintain overall financial strength during the continuing downturn in the communications industry, and to accelerate the company’s return to profitability.
International Strategy
MetaSolv’s strategic objective is to be a global market leader in service fulfillment solutions for communication service providers. To achieve this objective, MetaSolv applies a multi-pronged strategy consisting of portfolio expansion, globalization, and support for next-generation mobile and IP services. Acquisitions have largely contributed to their strategic imperative – globalization, by providing an expanded global customer base and skilled resources in its target growth markets, including Europe, Caribbean and Latin America and Asia-Pacific regions along with products available for deployment throughout the world. The components of the multinational environment that MetaSolv will face are multi-faceted:
- Government stability – laws, regulations and policies and political philosophies;
- Key economic parameters and their projections – population distribution, economic development; exchange rate controls; labor supply and wage rates;
- Business systems and structures – domestic and foreign patterns of ownership; business associates and their influence; managerial processes and practices;
- Social and cultural parameters and their projections – literacy and education levels; religious and racial characteristics; rate of social change.
Furthermore, international operations are subject to a variety of additional risks, associated with global expansion that could adversely affect operating results and financial health.
MetaSolv has been fortunate that all of its acquisitions thus far have contributed to major benefits, allowing MetaSolv to:
- Expand its diverse global customer base to include a number of leading global service providers;
- Position itself as the definitive global OSS industry leader for fulfilment solutions;
- No other solutions provider currently matches the breadth and depth of MetaSolv's product offerings, or its global market reach;
- Both MetaSolv and its partners are ideally positioned to dramatically expand customer focus, product expertise and geographic strengths to dramatically expand their OSS service offerings;
- MetaSolv added a significant number of major global communications industry leaders to its diverse, global customer base — accelerating the timetable for achieving the company's strategic globalization goals.
To support its global market initiative, MetaSolv is continuing to build its European and Latin American teams through localized recruiting efforts and expanding its international locations. "As competition in Latin America, especially Brazil, continues to rapidly evolve, we see tremendous market opportunity for our proven solution in this region. We are committed to bringing our mission-critical solution to global markets, and having a presence within those markets is a key to our success," said Curtis Holmes, MetaSolv president and COO. "From our regional office in Brazil, we will strengthen support for our existing customer base and cultivate relationships that will enable us to achieve our goals for growth in Latin America." MetaSolv's current Latin American customer base includes leading service providers such as GVT in Brazil, and MaxCom and Avantel, based in Mexico.
Cooperative Strategy
Once again using the Grand Strategy Selection Matrix and the Model of Grand Strategy Clusters, we will look at the cooperative strategies MetaSolv has applied. To maximise strengths from an external point, MetaSolv has used a number of strategic alliance partners. With a rapid market growth and strong competitive position, MetaSolv would have applied the same strategy; Alliances and Partnerships to optimize delivery of a comprehensive end-to-end solution to customers. MetaSolv has established strategic relationships with organizations in three general categories: systems integrators, complementary software application vendors and hardware/software platform vendors.
MetaSolv realises that a major part of their future success depends on their continued use of strategic relationships to implement and sell their products and that they could lose sales opportunities if they fail to work effectively with these parties or fail to grow their base of marketing and platform alliances.
Strategy Implementation
Corporate Governance
Ethical integrity is a cornerstone value supporting MetaSolv's business culture. Our Code of Ethical Business conduct opens with the statment that 'MetaSolv intends to develop, maintain and deserve a reputation for the highest standard of business and professional ethics throughout the world.' Every MetaSolv director, executive, and employee is accountable for carrying out that intent. There is extensive data on the MetaSolv website with an open invitation to all visitors to review their Corporate Governance section of their website, which includes some of the specific statements and tools that are employed towards achieving the above standards.
Structure and Control
In 2000, MetaSolv created a new organisational structure to give them greater flexibility for global expansion. As of January 1, 2001, MetaSolv Software, Inc. became a wholly owned subsidiary of MetaSolv, Inc. The new organizational structure provided certain tax savings and allows MetaSolv more flexibility to conduct business globally. MetaSolv is expanding its products and services internationally, and the expanded organizational structure broadens the alternatives for future financing and growth. The core departments are Research and Development, Sales and Marketing, Finance, and Customer Support Services. MetaSolv has implemented a worldwide product divisional structure, with decision-making authority centralised in its head office in Plano.
Strategic Leadership
Strategic leadership is critical to the implementation of successful strategy. There can be no doubt that MetaSolv has effective leaders, as the implementation of the strategies has been extremely successful. Due to the nature of the industry MetaSolv is in, it needs to change at ever increasing speeds. MetaSolv needed a leader who would take risks in the early stages of its life cycle. By applying the Myers-Briggs profile in management profiling, it is felt that a possible profile for the leader in its early stages would be an ENTP. An ENTP is described as being “Enthusiastic, quick, ingenious, outgoing, and multitalented. Stimulating company, alert and outspoken. Independent, non-conforming, may argue for fun on either side of a question. Resourceful in solving new problems, will retreat from detail work and hum-drum routine. Will seek new interests, one after another.”
James P. Janicki co-founded MetaSolv in July 1992 and was the CEO until July 2003. John White, of the board at MetaSolv, says that the company’s success is due to Janicki’s skills as an IT innovator and leader. "One of Jim’s key attributes is his sensitivity to what customers really want and need and his ability to transform these customer requirements into an excellent product solution," he said. Jim is a person of his word and, when he hired Holmes as President and COO, he told him he was looking for his replacement in about 2 to 3 years time and he made good on his promise to ex-Lucent executive and MetaSolv’s current chief operating officer, T. Curtis Holmes Jr., Janicki handed the management reins of the company to now president and CEO Holmes and will return to his passion as the company’s software architect.
T. Curtis Holmes is the president and, from July 2003, CEO. “Curtis has demonstrated the ability to grow an organization aggressively both internally and through acquisitions, while significantly improving profitability, which will be helpful to MetaSolv as we pursue our growth and expansion goals,” said Janicki. “Curtis adds significant strength and depth to our management team, and we are pleased to have someone of his calibre join us.”
MetaSolv appointed Holmes as a caretaker to lead MetaSolv into a phase of growth and expansion as he did in his previous company, Lucent Technologies. His profile on the Meyer Briggs Profile shows as either ISTJ or INTP which basically relates to an intelligent, patient, responsible, problem solver and hard working individual.
For a co-founder and CEO of a company, particularly in the software industry, to hand over the reigns to someone else shows a high level of maturity. Jim Janicki has put the company first as he realised that he was not the person to take MetaSolv into the next phase. He has moved into the Chairman position, while personally focusing on the innovation side of the company, namely, the R&D section. “MetaSolv is fortunate to have two top leaders with keen business instincts and deep experience and knowledge in communications software.”
Strategic Entrepreneurship
There is a tremendous amount of evidence of strategic entrepreneurship at MetaSolv in that the leadership have constantly sought competitive advantages in order to create wealth. As discussed under strategic leadership, the CEO is a true entrepreneur since he started MetaSolv and in a space of 10 years grew the company in leaps and bounds. This is a testament of the high level of entrepreneurship present in the leadership of MetaSolv. The fact that MetaSolv has succeeded in moving from a privately owned company into a publicly held company and are market leaders in their field supports this.
- Conclusion
“In the years since MetaSolv first offered its solution, the communications industry has experienced monumental change. With its thorough understanding of the communications marketplace, MetaSolv moved quickly and instinctively to ensure that its product keeps pace with the needs of its customers. As a result, the MetaSolv name is synonymous with leadership and innovation,” said Rob Rich, executive vice president, The Yankee Group. MetaSolv has been a resounding success in being effective in the environment it is operating in, while expanding into the global environment.
MetaSolv’s choice of strategies has favorably influenced its growth in the market. MetaSolv has pursued a focused global, growth and expansion strategy in the niche OSS market. Its acquisitions and strategic alliance partnerships have built it into a powerful force. It has developed competitive advantages that should ensure its future. Its strategies are well suited to the fast paced industry in which it operates. The environment for marketing OSS software solutions to communications service providers remains challenging. MetaSolv’s acquisitions of new products, customers, personnel, and sales territories have been key factors that have resulted in its significant success.
MetaSolv has been successful in the implementation of its strategies. It has implemented structures that have worked well, with leaders who have a great understanding of both the industry and the technology required to succeed.
In evaluating the business strategy, the analysis indicates strength in all four areas used; Financial, Customer, Internal and Learning and Growth.
To maintain its objective of remaining a leader in its chosen field, MetaSolv has:
- Expanded its sales and distribution capabilities;
- Expanded its software with new functionality;
- Expanded its customer base by aggressive market penetration;
- Managed to attract and retain qualified employees;
- Continued to use strategic relationships to implement and sell its products;
- Managed to enter and grow its operations in international markets and be profitable;
- The ability to meet customer expectations by delivering quality software.
In an extremely competitive telecommunications software industry, MetaSolv has shown superior resilience to market forces and the global slump in the telecommunications industry. MetaSolv’s globalisation strategy has enabled it to enter new markets that were not affected by this slump and effectively pursue strong growth of its customer base. Due to its supreme product portfolio and core competencies supported by strong leadership, MetaSolv has grown its revenues. MetaSolv’s strategies have enabled it to overcome threats of new competitors and not allow it to be detrimental to its business. MetaSolv has proven its tenacity in remaining an OSS leader in a dynamic industry.
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