Vonage sees the worst time

The CEO of Vonage, the internet telephone company, resigned on Thursday. Micheal Synder served Vonage for almost 14 months before he handed over his resignation. The company is already in a huge mess due to the patent issues and is fighting the allegations. The sales have declined recently and the company seems to be unable to retain the market share.

The company at present has 2.4 million customers and by the rulings passed by the federal judge Vonage has been asked to stop getting new customers. The patent infringement allegations have acted as a hard blow on the company’s reputation. The company has launched the appeal against this decision in the higher court but it is still pending. At the moment the company has to stop signing up new customers.

Vonage was doing really good in the last few years. It is one of the companies which made it big in advanced technology production. Vonage is a market leader in many technical products. The firm has entered the market as a first mover and has taken all the advantage a first mover can get. The firm has been successful till now in retaining the market share it has carved successfully.

This patent infringement lawsuit against the company has created a lot of problem for Vonage. The sales have gone down and the company is losing its market share at a very fast pace. To add more to it now the company is looking for a new CEO.

Vonage is trying its level best to retain its customers. The market share is important to the company. The customers are repeatedly being told by the company that they will not face any problem and interruption in the services offered by the company. But the situation is getting out of hand as the customers are now turning towards the competitors of Vonage.

Skype is one of the competitors which is getting a chunk of the market share of Vonage. Many customers are pretty sure that Vonage will not be able to take this blow and as a result it will be wiped out. The competitors are ready to take advantage of this situation. The situation will be much clear once the appeal will be decided. At present, with the federal judge’s ruling against signing up any new customer and the resignation of the CEO, the company is in a big trouble.