COMPANYFor sharing. To that extent, AVSPEED is

COMPANYFor this Blue Ocean Strategy exercise, the company that we decided to pick is AVSPEED Inc. A Software development company for which I am the co-founder.AVSPEED’s main line of business is collaboration tools for Software Developers, which encompasses video/audio conferencing, messaging and file sharing. To that extent, AVSPEED is mostly a B2B/B2C company because most licenses that it sells are sold to other developers or companies that use that license to create their own offering in the form of some sort of software application. According to the North American Industry Classification System, AVSPEED belongs to the category of Custom Computer Programming Services.As the founder of this company, I have been actively involved in the creation of video conferencing applications for a long time. Over the years, I used my expertise to create software developer kits that made it easy for other developers to create their own collaboration tools without any added branding. Needless to say in more recent years, with more and more people working remotely and needing to connect, the market for collaboration tools has exploded. In 2011, Google drafted a list of standards for web based communication backed by a open sourced project that made in browser video conferencing without any additional software possible ( code name WebRTC).For a while, Google Chrome was the only browser that adhered to the standards, but other browsers ( Opera, Firefox ) jumped on the bandwagon. More recently, Microsoft announced that it was incorporating the same standards into its latest browser offering and Apple announced that its browser (Safari) would possibly support it in 2018.Developers across the globe can now easily incorporate video conferencing in their web application with a few lines of code. To say that the web based video conferencing industry is a “Red Ocean” is an understatement. WHAT FACTORS MAKE THIS A RED OCEANCurrently all web based video conferencing vendors that have adopted the WebRTC standard are competing for a share of the market in a very tight space most of which is owned by big ( in terms of infrastructure) web conferencing vendors.It is becoming harder and harder to grow in this market when your competition is big companies such as Facebook, Microsoft, Google and some big Telecommunication companies such AT and Avaya. Facebook, thanks to its extraordinary user base reported 400 million monthly active users doing voice and video calls on Facebook Messenger using Facebook’s WebRTC implementation1. One can say that the video conferencing has turned into a commodity for consumers who have access to the internet and the video conferencing development market has become quite saturated with a lot of vendors offering the same product with a different brand 2.EXISTING VALUE CURVEThe current competing factors when customers evaluate solutions are the followingEase of use and Implementation : Is the product easy to use, can I quickly build a solution using the product ?Software Developer solutions need to be easy to use. That is the whole point behind a software developer kit. A software developer’s kit needs to allow developers to quickly build applications.Rating: HighWeb based Solution : Does the solution work in a web browser without the user having to download or install anything. Rating : High. Due to security concerns, downloading anything from the internet has always been a risk. Using a web based conferencing tool should be seamless and not be a risk.Desktop Based solution : can the solution be used in a desktop based applications ? Mobile based Solution is the solution compatible with mobile operating systems such as iOS and Android ?Rating: High. For enterprise users, web browser use is limited. Having a solution that is desktop based allows controlled deployments and configurations. Infrastructure requirements : What kind of hardware does a firm need in order to implement the solution ? Rating High: Infrastructure is a fairly important factor. Infrastructure requirements may drive the cost of implementing the solution upPrice : What are other cost associated with implementing the solution ? Price is of utmost importance here. The market in which AVSPEED competes is composed of a diverse category of buyers/customers. We see everything, from developers wanting to create applications that simply connect two users, to big companies that need to scale for a big user base. Most often, in order to support these big companies, bigger vendors are required and with that come additional costs such cost per minute of video conferencing. So depending on who the buyer is, the rating will vary. For the purpose of this assignment, we will focus on companies wanting to implement solutions while still reigning in the costs, so the rating for the price will be High.Number of concurrent users How many users can participate in a video conferencing session. This is the most frequently asked question that we get, how many users can conference together with your product ? The rating is HighIntegration in existing systems how well does the solution integrate with existing systems and or applications. The rating for this factor is Low, because it is very common in the software development world for developers to create some sort of integration where it does not exist. As a result, it is not Use within Enterprise can the solution be used in a Local or Wide area network without changing the current network infrastructureThis rating is high because people expect the product to work everywhere. Call establishment is critical in video conferencingWhat about Support ? What kind of support can a customer expect should problems arise after purchasing the solutionRating HighANALYSIS OF AVSPEED’s PRODUCT LINE – 6 PATHS FRAMEWORKINDUSTRYAVSPEED’s current industry is the industry of Custom Software Programming. AVSPEED has always targeted the software development industry.Looking across the industry for AVSPEED could be starting looking at the Hardware industry and use our Software Developer Kit to power hardware devices. This would open up product line opportunities that could potentially target home automation systems for example.STRATEGIC GROUPWho is AVSPEED currently competing against ? Big Software Solutions Vendors. AVSPEED could start focusing on the smaller vendors that develop similar software.  CHAIN OF BUYERSAVSPEED has main target is software developers looking for easy ways to build software for their clients.Because AVSPEED currently owns technology that enables Video Conferencing in Software. Hardware devices run software, therefore AVSPEED could change its target to Hardware Manufacturers and market embedded software solutions to them. COMPLEMENTARY PRODUCTS AND SERVICESVideo conferencing requires scaling and requires good infrastructure. As a complimentary service to Hardware Vendors, AVSPEED could offer a cloud based infrastructure ( signaling servers hosted in the cloud and media servers)  that would be the backbone that the hardware runs on.  EMOTIONAL ORIENTATIONSoftware Development is complex. Software can also be complex. By embedding software into hardware and limit its function to what people really want to do, AVSPEED would make its offering very easy to use and attractive to the customers.TIMEIt is important for AVSPEED to look at trends. The world of communication is booming, people want to connect, people want to communicate, people want to see each other and they want to do all these things easily. You should not need an expensive phone to video conference, you should not need fast internet access. Video conferencing should be easy and accessible to everyone.ANALYSIS AND FOUR FACTORS ACTION FRAMEWORKELIMINATEEliminate the middleman. Instead of targeting software developers target companies themselves that want a product. Eliminate building the Software Developers Kit. Build the Software and target a different group such as hardware manufacturers Eliminate the distinction between Web/Mobile and Desktop a lot of time is being spent trying to make the technology run onto various platforms, while a hardware device would only focus on one.REDUCEReduce AVSPEED’s costs by working with hardware manufacturers that are part of an ecosystem that can offer the infrastructure necessary to maximize the efficiency of our product, allowing our product to scale effortlessly.RAISEIntegration with existing systems is important when working with hardware. The Amazon Echo Show for example integrates into the Amazon ecosystem. Find another ecosystem that could use the same level of integration that we could put our product inside of.CREATECreate value by focusing on the idea of a single hardware product and promote our brand ( Like Intel promoted “Intel Inside”). Over the years AVSPEED has spent a lot of resources helping other developers build various products but once the software developer kit is sold to a customer, our brand basically dies.Promoting our brand inside a hardware product would be a strategy for success.REFERENCES1. Rebekah CarterWebRTC: Making it Work for Enterprise Collaboration and CommunicationRetrieved from https://www.uctoday.com/news/blog/webrtc-making-work-enterprise-collaboration-communication/2. Digital SambaThe video conferencing market is growing continuouslyRetrieved from http://www.digitalsamba.com/de-DE/blog/the-video-conferencing-market-is-growing-continuously

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