Level 3 communications Question # 2

In the late 1990’s Crowe’s beliefs were starting to come true, concerning the rise in net-work traffic. The net work traffic was doubling in demand every 3 months. This was astronomical for any company and their future in the world of net working. Crowe decided to start the company “Level 3 Communications” where they would specialize in building state-of-the-art fiber optics.
The strategy of the company was a very, well thought out and to the point. Crowe’s goal was to raise money, build a high capacity fiber optic network, and then cut prices to bring in high demand from huge organizations that are in desperate need for a faster networking capability. Crowe believed that in cutting the cost in the net-work price, and then he will bring in higher revenue for the company. That is why the company was able to raise so much Capital. Lower cost by 1 percent, yet the demand has risen 1,000 % in one year. These type of odds will really bring in a huge gain for the organization.