Market Opportunity Identification Small-to-Medium-sized Business Deep Dive A custom research project for Prodigy Business Solutions

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Carlos F. CamargoCollaborative Marketing

399 Main StreetLos Altos, CA 94022

650-949-4882February 1999

Phase II:Market Opportunity Identification

Small-to-Medium-sized Business Deep Dive

A custom research project for Prodigy Business Solutions

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High Level Findings from Phase I (July 1998)

• Focus on SMB firms with <50 employees in theNY 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 CompetitorsTargeting 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 Class1-24

employees25-99

employees100-500 employees

# of Companies(*) 9.5 million 624,000 155,000

Level of Need/Level of

FullfillmentHigh/ Low High/ High High/ High

GeographicalAttractiveness

More concentrated inProdigy coverage

No advantage No advantage

Channel

TelemarketingVARs

DevelopersAssociations

Vendors

TelemarketingVARs

Developers

DirectVARs

Developers

(*) Source: Dun and Bradstreet

Laying down the Foundation forSMB Access, Presence &

Commerce

Laying down the Foundation forLaying down the Foundation forSMB Access, Presence &SMB Access, Presence &

CommerceCommerce

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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 monthopportunities

12 mo. opportunities

18+ mo. opportunities

ConsultingAccounting

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" ofmarket segments

2) determine the highest value for small andmedium business market segments

3) relate the potential Prodigy business bundleofferings to the leading market segmentopportunities.

4) perform a competitive analysis of keycompetitors

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 DeveloperPrograms

MindSpringMindSpringEarthlinkEarthlink

PSINetPSINetConcentricConcentricNetcomNetcom

Demand Generation Strategies Channel Strategies

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Phase II Objectives

• Find commonalties across the SMB market around whichProdigy can form marketing themes

• Identify the most compelling IP-based applications andservices for the SMB market

• Chart the Buying Process for SMBs, focusing on purchasingcriteria and motivations

• Determine the overall opportunities in the followingemployee-size segments: 1-4, 5-9, 10-19, 20-49, 50+

• Identify the the commonalties of the SMB market for webhosting

• Recommend pricing strategies for SMB market entry

• Identify sources of awareness for SMB Decision Makers

• Recommend a positioning strategy for Prodigy BusinessSolutions

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CM Methodology

Project KickoffProject Kickoff

Secondary ResearchSecondary Research

In-Depth InterviewsIn-Depth Interviews

Synthesis & AnalysisSynthesis & 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 SizedBusiness nationwide.

BuildingFactBase

Develop SegmentProfiles via CaseStudies

Weekly 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 wererandomly selected from Dun & Bradstreet’sDatabase of U.S. Businesses from amongfirms with under 100 employees and acrossall industries as well as yellow pages.

Contact Sources: Interviewees wererandomly selected from Dun & Bradstreet’sDatabase of U.S. Businesses from amongfirms with under 100 employees and acrossall industries as well as yellow pages.

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Contact List - 55 SMBs Interviewed

Size Holdouts (4) Novice (21) Sophisticated (30)

1-4Employees

(16)

⟨ CunninghamCleaners, DavidLink, Principal

⟨ Nick’s Shoe Repair,ElizabethSantangelo

⟨ 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

5-9Employees

(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

10-19Employees

(12)

⟨ Chase BeckMachine 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

20-49Employees

(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

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Respondent Profile

Respondents by Company Size

1-427%

5-922%

10-1922%

20-4924%

50+5%

Respondents by Level of Sophistication

H o l d - o u t s7%

Novice38%

Sophisticates55%

15

1212

13

3

4

2130

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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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Roadmap

Introduction

FindingsFindings

Conclusion

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High Level Findings

Prodigy PositioningPurchase Decision Makers

Purchase Influencers

• Key driver is to be perceived as “on theforefront”

• Heavily influenced by Friends & BusinessAssociates

• Key driver is to be perceived as “on theforefront”

• Heavily influenced by Friends & BusinessAssociates

• <5 employees: Owners, Presidents andCEOs are the IP Champions.

• >5 employees: Web-savvy employees,Managers with designated webresponsibility.

• <5 employees: Owners, Presidents andCEOs are the IP Champions.

• >5 employees: Web-savvy employees,Managers with designated webresponsibility.

• <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 onlinebusiness 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 onlinebusiness 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 employeeswere more literate. Internet illiteracy was generally confided to companies with < 5employees .

• Respondents were eager for more information and were planning further investments in IPservices.

• Killer Applications continue to be Email and Internet Access.• Pricing Sensitivity to upfront, setup costs: less price sensitivity for value-added services

Key Findings

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High Level Findings (continued)

Strong evidence that small businesses are adopting many of the same technologies to remaincompetitive. However, more education is needed about the strategic importance of the Internetthrough a basic, staged product offering (or Learning Path) are key to establishing and retainingcustomers.

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

Ran

ked

Ran

ked

Ord

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Ran

ked

Ran

ked

Ord

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rder

Implication to Prodigy: To resonate with SMBs messages should highlight TopReasons & Top Challenges.

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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

Cu

sto

mer

s

New

Rev

enu

es

Imp

rove

Cu

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Ser

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Rai

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s

Ext

end

Rea

ch

Pro

du

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ity

Reasons For Going Online

Nu

mb

er R

esp

on

ses

Top 3 ReasonsSMBs

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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SMBs report a 3 Phase Adoption Process


Phase 1: ACCESS

Company doesn’t wantto be left behind the

times and goes onlineto see what it’s all

about

Phase 1: ACCESSPhase 1: ACCESS

Company doesn’t wantto be left behind the

times and goes onlineto see what it’s all

about

Phase 2: CONTACTCompany understands

the improvedcommunications with

customers andvendors

Phase 2: CONTACTPhase 2: CONTACTCompany understands

the improvedcommunications with

customers andvendors

Phase 3: COMMERCECompany understandsstrategic value of the

Internet & hasallocated resources to

execution of onlinesales strategy

Phase 3: COMMERCEPhase 3: COMMERCECompany understandsstrategic value of the

Internet & hasallocated resources to

execution of onlinesales 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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Who Are the Decision Makers?

IP Champion & Decision Maker

97

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

Nu

mb

er o

f F

irm

s

Owner Designated Responbility Web Saavy Employee No Champ

Ad hoc DesignatedNo Clear Vision Clear Vision

Decision ContinuumSmallFirms

LargeFirms


Key Decision Makers &Influencers

• Smaller Firms: Ownerand/or President

• Larger Firms:DesignatedResponsibility

Key Decision Makers &Influencers

• Smaller Firms: Ownerand/or President

• Larger Firms:DesignatedResponsibility

Owner isChampion

Owner isChampion

Sales &Operations

are theChampions

Sales &Operations

are theChampions

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How Much Do SMBs Typically Spend on Internet Services?

Average Monthly Expenses for SMB Novices

$20 $31 $29 $27

$650

$0

$100

$200

$300

$400

$500

$600

$700

1-4 5-9 10-19 20-49 50+

Firm Size CategoryD

olla

rs $

1-4 5-9 10-19 20-49 50+


Average Expenses for SMB Sophisticates

$22$56

$516

$209$240

$0

$100

$200

$300

$400

$500

$600

1-4 5-9 10-19 20-49 50+

Firm Size Category

Dol

lars

$

1-4 5-9 10-19 20-49 50+

Novices typically spendbetween $20-$55/mo. onInternet Services. Companysize is not a factor

Novices typically spendbetween $20-$55/mo. onInternet Services. Companysize is not a factor

Sophisticates typicallyspend between $22-$240/mo. on InternetServices. Company size isa key factor.

Sophisticates typicallyspend between $22-$240/mo. on InternetServices. Company size isa key factor.

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Penetration of Internet Services by Sophistication Level

60%

33% 32%

0%

10%

20%

30%

40%

50%

60%

Pe

rce

nta

ge

of

Em

plo

ye

es

Us

ing

Te

ch

no

log

y

% w/ Computer % w/ Email % w/ Access

Technology Used

Novices: Technology Penetration


72%

66%66%

62%

63%

64%

65%

66%

67%

68%

69%

70%

71%

72%

Pe

rce

nta

ge

of

Em

plo

ye

es

Us

ing

Te

ch

no

log

y


Technology Use

Sophisticates: Technology Penetration



% 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%

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What do SMBs Desire as Applications?

51 51

37

30 30

20

10

0

10

20

30

40

50

60

Nu

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esp

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Em

ail

Acc

ess

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om

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ce

Web

Ho

stin

g

IP T

elep

ho

ny

IP F

ax

Bac

kup

/Rec

ove

ry

Top Application Requirements

The TopApplication

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


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What are SMB Preferences for Outsourcing of Web Hosting?

0

3

0

7

3

5 5 5

2

00

1

2

3

4

5

6

7

Nu

mb

er o

f F

irm

s

1-4 5-9 10-19 20-49 50+

Firm Size Category

Insourcing Vs. Outsourcing

Preferences (n=30)

Internal Outsourced


Top 3 Reasons SMBNovices & SophisticatesOutsource 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 Respondentsare more likely tooutsource

• Larger Respondentsare more likely todevelop & manageweb sites internally

• Smaller Respondentsare more likely tooutsource

• Larger Respondentsare more likely todevelop & manageweb sites internally

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What are the Outsourcing & Pricing Preferences of SMBs?

1 1 1

2 2

3

1

3

1

5

0 0 0 0 00

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Nu

mb

er o

f F

irm

s

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=20N=20

ISPs, Web Site DesignConsultants, and Websaavy friends are allcommonly used foroutsourcing.

ISPs, Web Site DesignConsultants, and Websaavy friends are allcommonly used foroutsourcing.

• 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%)


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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 tocheck email and do some minor research, and I wouldn’t even think of switching to another ISP because I don’t thinkthat 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 expector 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

How satisfied are you with your existing 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 .


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Top ISP Selection Criteria

51

45 45

40

3027

25

20

1513 12 11

0

10

20

30

40

50

60

# o

f R

esp

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ses

Ava

ilab

ility

Cu

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Ser

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Rel

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Bill

ing

Rec

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Tim

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Biz

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up

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rt

Fro

ntP

age

Purchasing Criteria


Top 3 SelectionCriteria Reported

by all SizeCategories &

SophisticationLevels

#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

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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

Technical Support

Price

Knowledgeable Customer Support

Full-service Provider

Security Services

Managed Connectivity

Size/Financial Stability of ISP

Web Site Hosting

Quality of account mgmt.

Number of years ISP has been in Business

Audio/Video Streaming

Value-added Services

Reliability, Performance, Support & Price are the top swing factors when selecting an ISP

Source: TeleChoice Survey of 1,308 network and IT managers.*

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Customer Service/Support was the #1 Internet Application for SMBs

4035

25 25

16

05

10152025303540

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Cu

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un

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w/ V

end

ors

Co

mm

un

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ing

w/ C

ust

om

ers

LA

N

Application Area

Top Applications Considered Very Important to Continued Business Success

Top ApplicationsReported 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


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4

13

30

12

10

1

7

1

11

17

16

11

143

4

12

4

2

5

15

2

5

10

0

5

10

15

20

25

30

35

40

45

50

Nu

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AO

L

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erve

Ear

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Pro

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y

Ver

io/B

est

AT

&T

IBM

MC

I/Wo

rld

Co

m

ISP Awareness Levels

Hold-outs Novices Sophisticates

ISP Mindshare

Novice awareness1) AT&T2) AOL3) Prodigy4) Mindspring

Sophisticate awareness:1) AOL2) Mindspring3) IBM

Novice awareness1) AT&T2) AOL3) Prodigy4) Mindspring

Sophisticate awareness:1) AOL2) Mindspring3) IBM


For these Respondents incumbentISPs tended to be local or regional

No ISP has succeeded in building strong mindshare with Hold-outs.

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What are the Favorite Sources of Information about Technology?

30

40 4035

05

10152025303540

Nu

mb

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f R

esp

on

ses

Dir

ect

Mai

lC

atal

og

s

Tra

de

Pu

blic

atio

ns

Fri

end

s

Bu

sin

ess

Ass

oci

ates

Source

Favorite Sources of Information


Favorite & MostTrusted Sources ofInformation aboutTechnology for all

SMB categories

# 1 Friends & TradePublications

# 2 Business Associates# 3 Direct Mail

# 1 Friends & TradePublications

# 2 Business Associates# 3 Direct Mail

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Bundling Opportunities for Prodigy

ServiceElements

Near - Term(<12 months)

Mid - Term(12-24 months)

Long - Term(> 24 months)

Email X X X

Web Hosting X X X

Remote Backup& DisasterRecovery

X X X

IP Fax X X X

IntelligentMessaging 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


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Roadmap

Introduction

Findings

ConclusionsConclusions

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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.”

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Golden Nuggets