Global Crossing’s strategy for penetrating the market more deeply will involve a combination of direct and indirect channels (with a focus on six major vertical segments), and the expansion of its wholesale customer base to include wireless operators, cable operators, systems integrators (SIs) as well as other carriers. Its willingness to work with SIs in particular is greater than that of its competitors, which tend to be warier of acting as sub-contractors.

The new strategy brought results in 2005, with improved gross margins and revenue growth in the core business. . This is a good sign that the new strategy is paying off. However, there is still considerable room for further improvements, since the company wants to achieve positive cash flow by the end of 2006 in order to avoid the need for further loans from its major shareholder.

Table of contents

Ovum view
New strategy is paying off but challenges remain
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
External conditions
Economic environment
Competitor positioning
Structure
Strategy analysis
Stated strategy
Mix of direct and indirect channels
Wholesale market – targeting key customers
Segmentation in the enterprise market
Financial analysis
Cost reduction efforts continue
Growth and profitability
Segment analysis
Other indicators