Telecommunications companies' risks - Essay Example

For a small business operating in a localized market, it is very easy to serve the market adequately, due to limited administration and maintenance costs for the networks. As the ventures increase size, and the market spreads geographically, the company should sustain operations in the risky global market by focusing on the cost effective technologies such as virtual private networks. Unprecedented growth is a key challenge that managers need to grapple with because it determines the strategic direction of a firm and as the pressure to remain competitive, they have to offer good services to the end user.

There is paradigm shift where important functions such as finance, research and development, marketing and administration, becomes very demanding with growing market and hence the need for innovative strategies. Global strategy should be in line with the overall business strategy of the organization in order to avert risks that may arise. To a telecommunications firm the focus should be geared towards selecting the best strategy, and perhaps going own way is the only sure way to respond to opportunities or threats.

As the firm increase market share and get up in the growth curve there is ever-growing demand for reliable services in order to take cultivate of business relationships, and exploit them to full. The firm needs to create their own telecommunication backbone infrastructure to avoid hassle of having to rely on unreliable companies. As for the case of, Metric Machine Parts and Supplies Corp, the number of customers is increasing rapidly. Numbers of catalogue orders is increasing, and hence the need for better distribution systems.

The service to the end-users is overwhelmed and the trend is likely to continue. The management is in dilemma as to, search for another contractor to build and maintain the network, or create own infrastructure. The board is categorical that want to reduce costs. The chief information officer has recommended virtual private networks, and that is likely to solve the business needs for the company. Nevertheless, there are challenges and risks accompanying this strategic move. Building own network infrastructure, not only lowers the costs but also increase service delivery.

VPN can solve practical business problems by incorporating seamless technologies that allows experts, knowledge workers across various points to collaborate. The system promotes innovative arrangements such as outsourcing and telecommuting across the various branches, and can go a long way in forging linkages with business partners for proper management of the supply chain. As a network provider, Metric Machine Parts and Supplies Corp is likely to operate in a rapidly changing environment mainly due to digital convergence of wireless networks, for example, WIMAX and GSM mobile communications into 4th generation or LTE.

The choices of systems for implementation of VPN to office, branches must be well commensurate with existing standards and practices. There are many options that the company can use, with numerous technology platforms existing. Each vendor proposed as set of solutions, and it is upon the company to choose what suits their business context. The technology infrastructure choice for data and communications should ensure that applications for the company are usable; these applications may include voice, video conferencing as well as collaboration tools.

Executives have to reduce cost and have system flexibility, scalability, and increase productivity of information technology professionals that supervise the deployment. The range of applications of the internet can be of poor quality compared to the internet capability and