Fonality, Inc. Open Model Profile Essay

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Fonality is a business-class Voice Over Internet Protocol (VOIP) service provider. Founded in 2003, the company's original goal was to provide VOIP home service, much like Vonage and Skype do today. In the process of setting up the office for the company, a quote was requested for a Private Branch Exchange (PBX) system. PBX systems are the standard for business-class phone systems. They allow for extensions, transfers, individual voicemail boxes, and the numerous other features found on business phone systems. Unfortunately, before Fonality, they came at a very steep price. Fonality was quoted $15,000 to have a 5 person phone system installed for the office. It was at this point that serendipity hit the founder. He realized that he could …show more content…
Partnering with one of the biggest computer manufacturers in the world pushed Fonality to a level of being a true competitor with the major companies that installed PBX systems. Fonality is still a privately held company with no immediately evident plans of going public. The main input to Fonality is undoubtedly its innovation and ability to see pick up on the desires of customers. This may seem like a somewhat non traditional input, but its is the driving force of the company. Additionally, another input is the phenomenal management team that is always trying to stay on the cutting edge of the business-class phone market. The final major input for the company has been the funding it has received. It has the support of several major venture capitalist groups, most notably, as previously mentioned, being the Intel Venture Capitalism Fund. All of the inputs are incredibly interrelated and they all center on one word: Innovation. Fonality actually presents a very interesting case study for the Blue Ocean Strategy, which the company has unintentionally utilizing since its switch to over to Business-Class from Residential VOIP. The company moved took the red ocean of traditional PBX system companies and moved it to a blue ocean by offering a more user friendly option at a cheaper price with the same quality of service. These inputs have led to a very strong company based on

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