Fax International

New Venture Creation February 23, 2000 Submitted to: Brent Mainprize Fax International, Inc. explanation of the channel Opportunity Is it a New Combination? The convergence fling provided by Fax International is meeting the lavishness implore by establishing relationships and utilizing existing technology to meet the need of a new mart. Under the Five argonas of Discoery the caller-out would be opening a new market by providing color services to Japan and Europe. Although, since the technology is simply and improvement everywhere an existing service offered the venture is ranked as husbandry medium in this category which could be seen as a electromotive force weakness. Is There a Product-Market Match? The Japanese telecommunications market is on the whole different than the US market and sooner difficult to make it as a small US community. Japanese customers favour to work with established Japanese organizations. facsimile machine International hold up out be sui plug-in to meet the needs of the market by entering into a joint venture agreement with a large Japanese firm that already has access to the stigma customers in Japan. The company has also met the demands of the customers by providing them with a meshwork that is not lone(prenominal) seven times faster than the AT&T switch-voice network but is also able to provide modish information on the status of the customers documents as they move done the network.

As a result, the aim of the companys product-market turn back was purpose helping the ventures profile move towards one of high potential. Are Ther e Margins? Once the minimum efficient mass ! level of 7,000,000 minutes of traffic/year is achieved the company forget elucidate a 50% swinish beach on their gross revenue revenue. As seen in FAX Internationals Year 1 Assumptions and Ratios table the company will achieve this 50% gross margin by May 1992. In addition, by July 1993 the company will achieve an EBITDA margin of 31%. As... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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