SiteGeek has crafted a platform where website visitors can watch, read and discuss web hosting issues. From last few years, it has been observed that new joint ventures are formed or company acquisitions have taken place, which has lead to the integrative growth of the hosting industry. It is also true that merger and alliances don’t always work out, which leads the company to consider diversification.
CPWebHosting established in 2002 has got age old experience of hosting industry, but at present; they are finding the opportunities outside their present business. They consider hosting industry highly attractive and the company has resources and strengths to succeed. From the origin as ‘Reseller Hosting’ company it has moved into research, analysis and finally to review and recommender systems. Although this new business has no relationship with their current technology, products or markets, they have used the horizontal strategy and have appealed the new product to their current customers.
CPWebHosting has also downsized and divested their old hosting business to release needed resources for other uses and reduce costs. With the rapidly changing business environment, their structure, policy and corporate culture are becoming dysfunctional. Whereas the company has changed its structure and policy, but it is very hard to change their web hosting culture.
CPWebHosting considers following 5 points to be successful in Hosting Business:
- Hosting market needs new and hybrid services, and also it is becoming a new converging industry trend.
- Buying process must be convenient and efficient, for which CPWebHosting is using WHMCS.
- Experienced human resources to provide advice and information to meet the needs of a hosting business.
- Able to provide customizable hosting plans as per the need and size of businesses.
- For the customer benefits, capable of acquiring new technologies and resources and offer to customers at a lower price.
With the decrease in prices in Hosting industry, the company was facing a major issue that the financial rate of return was not meeting up with the required threshold for investment. To deal with such problem, the company devised contingency plans.
Company was also facing one of the internal issues that it was not able to satisfy customers who were eating up time and resources, in its shared hosting division. So, Strength and Weaknesses analysis was done and it was decided to create a separate customer service department and also moving their accounts on different machines. This customer service department continuously monitor and update customers about services which are consuming high resources and when they need to upgrade their hosting plans?