Strategic Positioning / Five Forces

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2. Strategic Positioning/ Five Forces: Clyp’s strategic position is to provide a fully integrated IP telephony (IP PBX) solution that is high quality and reliable. They target the middle range of their market and are able to be effective through the use of their licensing model and their licensing deals. Clyp has an OEM-supply and licensing deal with Siemens, which allows Clyp to load its own software and functionality onto one of the most sophisticated IP phone ranges available. Siemens became an essential supplier since their phones were already popular in the German market and they had great engineering reputation. The licensing deal with Siemens entailed that the agreement was valid only for the most recent range of IP phones and needed to be renewed whenever Siemens introduces a new range of phones. Clyp has been able to get their agreement renewed but this agreement puts a lot of power in the suppliers hand. They also got their other hardware such as USB handsets and phones from Avaya and Acsom which were cheap, but also gave suppliers more power and lead to bigger issues. With its direct dependence on their suppliers Clyp ran into other issues. The same companies that they purchased from and had licensed with (Siemens and Avaya) became two of their biggest direct competitors. Siemens for example, is able to provide the same quality phone it did to Clyp to customers along with their own IP software, and for cheaper too. The intense rivalry between these competitors led
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