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Worldcom (stock symbol: WCOM), formerly MCI, Worldcom and MCIWorldcom, is one of the world’s most well known companies because it’s global objective has been part of the company’s strategy since day one. Worldcom does not produce an actual physical product, but Worldcom does incorporate physical materials to provide networking, data and communication (telecommunications) solutions and services to some of the world’s largest and most influential companies and people around the world. Globally, (even within the last five years) the telecommunications industry’s standardized outputs were centered on telephony like local, cellular and long-distance services. Today, data, network and call center management are some of Worldcom’s (and the rest of the telecommunications industries) most sought after commodities. Traditionally, telecommunication product attributes didn’t have to consider extensive customization to local requirements because the hardware, software and/or material properties were standard equipment worldwide. Question 2. The company’s position in the market. MCIWorldcom has successfully positioned itself to become one of the leading providers in integrated voice, Internet, data and communication services. Much of their success can be attributed to smart business decisions. Both MCI and Worldcom have a history of previous mergers. Since becoming one, MCIWorldcom, they have signed merger agreements with Skytel and Sprint. This will only better position themselves to succeed in the nearly 1 trillion-dollar global telecommunications market. Worldcom has established itself in over 20 countries throughout Europe, North and South America, and the Asia-Pacific region. According to the Worldcom website (www.wcom.com), telecommunications in these countries account for three-quarters of the $800 billion global market. These facilities provide around-the-clock customer service and network management support for Worldcom’s global operations. Being a large global entity, countertrade is not very evident in the MCIWorldcom financial structure although Worldcom participates in numerous business partner programs. Worldcom provides a service and/or fiber-optic cable and network connectivity in over 45,000 office buildings worldwide. One of the smart business decisions made by leaders at MCIWorldcom provisioned facilities and points of presence (POP) in each of their global locations. All POP is connected to Worldcom’s fiber optic backbone and intranet. Question 3. The company’s products and services. WorldCom provides fully integrated services linking major commercial centers throughout the European continent. WorldCom has offices in 17 Latin American countries. It holds investments in companies in Brazil, Belize, Venezuela and Mexico. WorldCom has ownership in the major cable routes from the U.S. to Latin America and 16 satellite earth stations in the region. In a plan to link major business centers throughout Latin America WorldCom has entered into a joint venture with Telefonica internacional SA to build a state-of-the–art, all-digital fiber optic network. WorldCom’s Asian/Pacific Rim operations include the first foreign-owned telecommunications company in Japan to offer international voice and data services over its fully owned network. They are in the process of constructing a network in Sydney Australia. WorldCom currently has offices that offer both voice and data services in Hong Kong and Singapore, and has remote data nodes in Manila, Kuala Lumpur, Seoul and Taipei. In addition WorldCom owns capacity in every major cable system in the region. Worldcom’s growing global outreach is cultivated by providing data, local and long-distance services through their facility-based strategy using a pricing strategy that supports to the digital age of telecommunications. Worldcom, with presence in over 65 countries, markets its products and services though affinity marketing and partnerships with some of the most influential companies in the world. Worldcom’s Global operations centers are in Cary, North Carolina and Amsterdam provide support to communications, networking and data solutions for some of the world’s largest companies. Providing products and services for nearly every market segment and population, Worldcom is securely positioned to succeed in the 1 trillion dollar telecommunications marketplace WorldCom provides fully integrated local, long distance, international and Internet services over its own metropolitan, national and international facilities throughout the world. WorldCom’s global operations are in more than 65 countries. They maintain 300 offices worldwide. WorldCom maintains global network operations centers in Cary, North Carolina and Amsterdam to provide 24-hour customer service and network management support. Their global network covers over 70,000 route miles. In North America WorldCom is the second largest long distance provider in the U.S. with a fiber optic network that covers 47,000 miles. Again, Worldcom has over 100 fiber-based, high capacity local networks, which connect directly to more than 45,000 office buildings. Its North American network offers integrated services that also span both Canada and Mexico. In a joint venture with Grupo Financiero Banamex-Accival of Mexico, WorldCom through a subsidiary Avantel, has captured 10 percent of the long distance market in Mexico. Question 4. Worldcom’s Target Market The companies target market is vast. Realistically it is any individual or business that has a need or a desire for products and services tangible only in the virtual world, and whose benefits reach deep into the real world. These markets are a very broad and range anywhere from small one-income families to large multi-billion dollar organizations throughout the world. For the purpose of this paper we are concentrating on Europe. These include individual, commercial business, and local government users. More specifically, college educated people that are home office customers and customers interested in bundling. Question 5. Worldcom’s goals and objectives Globally, (even within the last five years) the telecommunications industry’s standardized outputs were centered on telephony like local, cellular and long-distance services. Today, data, network and call center management is some of Worldcom’s (and the rest of the telecommunications industries) most sought after commodities. Traditionally, telecommunication product attributes didn’t have to consider extensive customization to local requirements because the hardware, software and/or material properties were standard equipment worldwide. Today, with so many companies around the world looking to capitalize on the Internet or data transportation revolution, Worldcom now mixes the marketing of it’s products and services with respect to their customers needs; giving Worldcom’s products a more customized appearance and appeal. Part of customizing products, is to take advantage of today’s digital technology, by deploying advanced data services to all users. While cable TV and wireless technologies may someday become widely available for high-speed Internet access, only the local loop providers, now controlled by the incumbent local exchange carriers can serve as an immediate gateway to those services. Worldcom intends to break into the local loop monopolies and offer the user a choice of analogue or digital technology. Question 6. The results sought by Worldcom. Since 1987, Worldcom’s marketing and customer care departments have worked extensively with Worldcom’s product research and development/manufacturing management organizations to launch over 800 successful business and residential products and/or programs, including networking support service partnership programs for many of the largest companies in the world. These programs have set new industry standards, giving Worldcom a competitive advantage over the industry’s most influential companies. Question 7. Who are the primary and secondary publics and what issues are important to them? Worldcom distributes and communicates inventive programs to the most influential market segments and locations including: college students and college campuses, small business environments, individual telecommunications consumers, and some of the world’s largest multinational/global corporations. By way of TV commercials, publication advertisements, partnership programs with other companies, some of the largest business expositions worldwide. Worldcom represents itself as communication solution for almost anyone who needs to communicate via electronic means. Question 8. What is the recommended plan? WorldCom intends to provide fully integrated services linking major commercial centers throughout the European continent: London, Paris, Frankfurt, Brussels, Amsterdam, Stockholm, Rotterdam, Dusseldorf, and most importantly, the former Soviet Union, utilizing local city networks and broadband SATCOM service. WorldCom’s operations goal in Europe is to triple the size of its all-fiber network and utilize broadband SATCOM capabilities. WorldCom holds a 50 percent interest in two high-capacity undersea cables that will allow them to connect with approximately 6,500 buildings in Europe and 100s-of-millions of personnel residence. Broadband SATCOM connectivity will allow T-1 data for instantaneous video teleconferencing for business, government, and personal Internet video conferencing. Worldcom plans on targeting individual, commercial businesses, and local government users. Worldcom recognizes the most progressive companies can benefit from a renewed focus on the most precious commodity: customers. In todays open European community, we intend to in-trench ourselves in the market and prepare for the competition. When competition targets our customers, their dialtone will be identical to ours. We plan on taking steps to "competition-proof" our service area, by researching our customers. We will use “target marketing” by knowing the customers. How old are they? Where do they live? What are their interests, concerns, and aspirations? Knowing the answers to questions like these gives us insight into the marketing approaches most likely to appeal to our target customers--and whether we are shooting for the right customer in the first place! Building customized communications services to specific customer groups, communicating these offers effectively, and training/motivating employees to provide value to customers. Worldcom employees will be trained with the following agenda in mind:  Public Relations and Marketing Planning  Publicity Campaign Management  Speakers Bureau Coordination  Development Group Facilitation  Marketing Materials Development  Creation Consultation for the customer  Promotional Events Development and Coordination We intend on using “brand identity” establishment, maximizing media coverage on television, radio, Internet, professional publications, and magazines. Targeting an audience who needs to communicate using twenty-first century technology. Emphasizing affordable, crystal clear, hassle-free, and instantaneous communications. Effectively using a “One World” communication service spanning boarders, oceans, and politics. Special considerations were considered as we developed our public relations strategies breaking into the European marketplace: Income and Education. Two of the important factors to consider when refining a customer profile. As a general rule, income increases with age, as people get promoted and reach their peak earning years. Married couples today often have the higher incomes because they may have two earners. Married couples may also have greater need for communications products and services, because they are most likely to have children, be homeowners and need flexible communication. Education is another very important and commonly used characteristic—in today's increasingly technological and highly skilled economy, education makes a big difference in occupation and thus in earning power. College-educated people are one of the most lucrative markets, but we will have to work extra hard to get and keep them as customers. They are more open to technology and innovation, but they are also less brand loyal, since they are more able financially to take risks. They like to make informed decisions about purchases; hence, they are the most likely group to request product information. A major target will be the home office customer, a potential gold mine. More people are working from home than ever before. In fact, 23.5 percent of the workforce is expected to telecommute by the year 2001. Home office customers are voracious users of telecommunications services. They are nine times more likely than other residential customers to have Internet access, 26 times more likely to have a cellular phone, twelve times more likely to have voice mail, 35 times more likely to have a pager, and 41 times more likely to have additional telephone lines. These home office customers represent a very attractive revenue stream for Worldcom. Another major expansion strategy is Bundling. Research shows that 80 percent of customers are interested in a combination of telephony, Internet, and video from a single provider. Customers are definitely interested in receiving all or most of their services from a single provider on a single bill. In fact, some customers find the benefit of simplifying their bookkeeping by receiving all their telecom services from one company on one bill to be a sufficient reason to switch providers. Worldcom plans on capturing the commercial market by bundling a variety of services that the competition cannot easily meet. We will even consider potential alliances with local electric companies or your cable television companies. Question 9. What are the sources of funding for the campaign and what sources need to be allocated to make the campaign successful? Worldcom must provide around-the-clock customer service and network management support for Worldcom’s global operations. To support global operations support, the Bank of New York will provide administrative and management services required to ensure the PR program is funded. The European public relations campaign will be funded using electronic Euro-currency. Funding will be prioritized by region: Northern Europe $30M, Southern Europe, Mediterranean bordered areas $30M, Eastern Europe, Russian States $70M. Western Europe $40M. Question 10. Competitors responses to our campaign. MCIWorldCom (MCI) will achieve its public relations campaign objectives through innovation and representation that they are the communications solution for everyone from individuals to major worldwide corporations. The company also stands behind its employees to foster this innovation. MCI has a tough job of getting across to its internal public as well as the external public that the company is no longer just a long distance phone company but, a world leader in telecommunications and e-commerce. MCI's competitors such as AT&T, Qwest, etc.. will certainly attempt to sway the public’s opinion that they have been in the e-commerce arena longer. They will also use the fact that MCI has traditionally been a long-distance service provider and is relatively new in the e-commerce support arena. MCI has prepared a heavy advertising campaign to show that they are a world leader in communications and are capable of providing the best service at the most economical price. The question to competitors is can they match MCI's global reach, hosting facilities, and potential partners they have in this arena. There is a piece of this market for everyone; however, MCI does not believe that its competitors can emulate what they are doing because they lack the basic resources. However, the company does not take any competitor for granted. MCI's challenge is to get the word out that we are busy developing the e-commerce technology our customer need. Therefore, MCI believes that by getting the word out to the public about our innovative initiatives, the public's perception of the company will remain positive as the company moves forward into the e-commerce arena. MCI set out a few years ago to change its public image from just a long distance telephone company to one stop provider enterprise. Although, MCI for quite some time has been offering a wide array of telecommunications services and products, a great portion of the public still view them as a long distance company. Changing the public perception of MCI rest with the company's current CEO Bernie Ebbers. Mr Ebber railed against the use of the word "telecom" to describe his company. His vision is to take the company far from its roots of long distance phone company to this one stop provider enterprise. According to InfoWorld Magazine CTO Fred Briggs is the individual who must drive this dramatic transformation from a long distance company to a company that can meet virtually all communications needs. The transformation is so dramatic that Ebber has even suggested that the use of the term MCI be used only to refer to the company's long-distance services. MCI is has a substantial presence in the e-commerce market place, the problem is most of the public still see them as a phone company. The strategy to change this image is simple and complex at the same time. MCI desires to maintain its edge as a leader in the long distance phone market; yet they want the public to consider them the leader in all communications and e-commerce needs. The reason according to Forrester Research is that, in four to five years, support to e-commerce companies will be a $7 trillion market. Therefore, MCI,s desire is that when people see MCI they think e-commerce. Question 11. Evaluation of results. MCI will measure success through customer surveys both internal and external customers. The survey will measure responses to the following questions:  What products/services does MCI provide?  Do you like the direction the company is heading? If yes why? If No why?  What would you do to improve customer service in your department?  What kind of changes would you like to see in your work area?  What products/services does MCI provide?  What products/services would you like to see MCI provide?  Does MCI all telecommunications and e-commerce services you need to run your business? The survey is to be conducted by a consulting firm, with experience in surveying the public. Based on the results the company will continue with the current public relations campaign or adjust our strategies accordingly. Success is also measured through financial success. MCI will determine how well we are performing by observing/measuring our market share as well. MCI hopes that through this aggressive public relations campaign we are able to change our image from just long distance phone company to a one stop provider enterprise. We want people to see MCI as the world leader in telecommunications and e-commerce support. Since Worldcom’s global telecommunications data and business services solutions accommodate the transportation of voice, binary or digital components, Worldcom’s pricing strategy can now done on a byte-by-byte basis. With the introduction and incorporation of “data packaging” (packets) and networking technology, Worldcom is able to allow their customers to share network bandwidth efficiently on Worldcom’s fiber optic backbone making the customer’s critical data transmissions more cost effective. Worldcom’s baseline pricing strategies for many of it global business programs are based on the “shared” cost of the network, data and support materials needed to transmit a respective customer’s data or information across it’s network. WorldCom believes that its strong commitment to competition in global and domestic telecommunications markets will bring better prices, services, and innovations to consumers everywhere. We intend to foolproof the competition by establishing ourselves in the Global market, by selling the Worldcom name. When the market talks about crystal clear communication that is affordable, convenient, with digital quality, they will automatically think, “Worldcom”. By using Public Relations strategy, Worldcom believes it can encompass a variety of marketing tactics that will strengthen our credibility, enhance our image, develop goodwill and influence public opinion. [1] Hill, C., 2000, International Business, Competing in the Global Marketplace, McGraw-Hill Publishing, Inc. [2] Worldcom, Inc. 2000, Product and Services, Take your organization to the next level, [ON-LINE] Available: http://www.wcom.com/for_your_business/products+services/ [3] Yahoo! Finance, 2000, Profile – Worldcom, Inc. [ONLINE] Available: http://biz.yahoo.com/p/w/wcom.html [4] Worldcom, Inc. 2000, Global Operations Overview, [ON-LINE] Available: http://www.wcom.com/about_the_company/corporate_overview/international_ Bibliography: [1] Hill, C., 2000, International Business, Competing in the Global Marketplace, McGraw-Hill Publishing, Inc. [2] Worldcom, Inc. 2000, Product and Services, Take your organization to the next level, [ON-LINE] Available: http://www.wcom.com/for_your_business/products+services/ [3] Yahoo! Finance, 2000, Profile – Worldcom, Inc. [ONLINE] Available: http://biz.yahoo.com/p/w/wcom.html [4] Worldcom, Inc. 2000, Global Operations Overview, [ON-LINE] Available: http://www.wcom.com/about_the_company/corporate_overview/international_ fact_sheet Word Count: 3135
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