Problem:
eYak was a Boston-based start up specialized in offering IP based audio-conferencing services to end-users. By early 2000 eYak had developed a software-based IP audio conferencing platform that allowed for one thousand ports over a single Pentium server. Because the hardware costs and IP telephone service were very low, eYak was able to offer audio conferencing services at much lower costs than traditional service providers. These cost advantages had particular relevance in the international market, which made those markets a priority for eYak.

Core Strategies Assignment:
Core Strategies mission was to build a business model where eYak would be able to target the European market while minimizing direct capital investment in the region.

Solution:
After researching the opportunity for two months Core Strategies proposed a plan that encompassed two basic approaches: to locate a platform in a high-demand region and market service to high volume users. The first step was to identify European based agencies that would finance the building of a European based operations center in forms of grants or (very) subsidized loans. The second step was to identify European carriers that would be interested in building partnership with eYak in order to offer private branded audio conferencing services ran out of the eYak platform in Europe.

Core Strategies planned eYak’s European data center in Potsdam, Germany after negotiating with local German authorities an attractive package of benefits that brought the company to that area. In parallel Core Strategies built eYak’s entry strategy into other areas of Europe, researching major markets, as well as identifying potential partners Global One (France), Cegetel (France), Portugal Telecom, Telia (Sweden) & Telenor (Norway). In addition Core Strategies planned the company’s International Sales & Marketing Operations, building budgets & sales forecasts for each selected market.

Results:
Successfully completed the first two contracts ever signed by the company with leading European carriers for a target value of $3 million in the first 12 months.