“Idearc seeks to repair directory business” via the Financial Times.
Labelling the sector’s problems as “a cyclical decline”, Mr Klein’s response has been to reposition Idearc as “the ad agency for small businesses”.
Its 3,000 sales people have been relabelled as “media consultants”, with changed compensation plans and simplified rate cards designed to drive clients to online and direct marketing services as well as directories.
Mr Klein has cut more than a fifth of Idearc’s staff to shave 10 per cent from costs. Now he is attempting to find growth through initiatives he equates with federal stimulus efforts.
That done, Mr Klein is looking for growth, predicting consolidation in the crowded directories market.
What it means: this Financial Times article mentions some of the strategic initiatives Idearc has taken to improve its corporate health. I also like the prediction from Scott Klein that the market will consolidate after these difficult times. I agree with this forecast.