Strategic Positioning in Converging Technology Markets—The Clyp Case

Abstract

This case is set in the market for Internet telephony software, which emerged as the result of the convergence of traditional telecommunications technology with new Internet-based speech technology. Clyp is the provider of a software-based IP-PBX, a public branch exchange, which allows companies to set up and self-manage an internal IP-based telephony network, whereby telephony and data share the same computer network infrastructure. Clyp finds itself confronted with an increasingly competitive and converging market. Its growth rates have fallen behind market average, and its product hasn't seen innovative changes for some time. The case is targeted at Postgraduate (master's-level) students in (business) information systems and strategic (technology) management. Its main aim is to facilitate learning on strategic positioning and business model analysis in the faces of converging technology markets and the unique characteristics of a software company. The case lends itself to a three-step analysis: (1) business model analysis, (2) market analysis and strategic positioning, (3) identification of strategic options.