Level 3 Communications Question # 4 - Ronnie Vajdak

Level 3's business strategies have evolved over the years but still aim at the original goals of the company. Level 3 began as a fiber optics production company to meet the expected huge demands of internet growth. When that growth did not immediately materialize and Level 3 and its many competitors began to lose profit, a new strategy was needed. Crowe acted quickly to change his company's direction with the help of investors. He first took the company in a new direction, buying two software distribution companies, which he claimed would reinvigorate the use of his fiber optics by distributing and maintaining the software over his network rather than manually, cutting costs and eventually bringing a profit. Crowe also began buying up his bankrupt competitors, in an effort to consolidate the fiber optics business and reduce competition. In 2004, Level 3 began working on an internet telephone network, giving new competition to the traditional telephone companies.
With these new strategies, Level 3's revenues have been growing again. Crowe still believes that the original business plan will be saved by the new technologies his company now provides. He believes that the software distribution and internet phone services will gradually begin to increase demand for fiber optics networking, which will repay the original debt of his company. In this way, the new strategies of the company are making it possible for the old one to be realized.