ICQ – A Turnaround Story A Turnaround A Turnaround Story Story Turning a Killer Application into a Growing and Profitable Turning a Killer Application into a Growing and Profitable Business Business Orey Gilliam Orey Gilliam Former Head of AOL Messaging and CEO of ICQ Former Head of AOL Messaging and CEO of ICQ
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ICQ – A Turnaround Story
A TurnaroundA Turnaround StoryStoryTurning a Killer Application into a Growing and Profitable Turning a Killer Application into a Growing and Profitable
BusinessBusiness
Orey GilliamOrey Gilliam
Former Head of AOL Messaging and CEO of ICQFormer Head of AOL Messaging and CEO of ICQ
ICQ – A Turnaround Story
The Good and the Bad The Good and the Bad –– End of 2003End of 2003
Good
• Extremely strong brand
• Considerable community in several
territories
• Desktop presence – unique value
• History of innovation – the IM
pioneers
• Superior product skills and knowledge
of the space
• Strong commitment of the
organization to the brand and the
company
• Despite a very rough year
Bad
• No active distribution• Declining user base
• Number 4 out of the four largest
global players• Fierce competition from MSN, Yahoo! and
AIM
• American product – translated but not
localized
• Very constraining budget
• No ad sales force – the major revenue
generator
• No local presence
2
ICQ – A Turnaround Story
The Strategy The Strategy –– Think Global but Act LocalThink Global but Act Local
• Viral distribution works much better with
the leaders and with little competition
• Must have local distribution
• A translated product is not a localized one
• Need a localized product with local content
and services
• Cannot close global advertising deals
• Advertising sales efforts are territory-based
• Relationship with the Mobile carriers may
be global
• Yet each local carrier has its own deal
3
Need to have local business presence in each of the target terriNeed to have local business presence in each of the target territoriestories
ICQ – A Turnaround Story
Strategy ImplementationStrategy Implementation
Give
• Co-branded ICQ client
• Access to ICQ community in
the territory
• Desktop presence
• Share revenue generated
through ICQ properties
Get
• Distribution via website
• Marketing via online and
offline properties
• Local content and services
• Access to local Mobile carriers
• Local sales force to sell ICQ’s
ad inventory
4
Form strategic partnerships with leading Media and Form strategic partnerships with leading Media and
Communication companies in strong ICQ territoriesCommunication companies in strong ICQ territories