MIS presentation on Skype Business Model
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MIS presentation on Skype Business Model

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MIS presentation on Skype Business Model

MIS presentation on Skype Business Model

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MIS presentation on Skype Business Model MIS presentation on Skype Business Model Presentation Transcript

  • Skype MIS presentation
    09BM8078
  • Introduction to telecom scenario
    Economy, services, industry
    Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002
    Major players and challenges
    Opportunities
  • New world order
    Emerging areas
    New services: basic telephony, PC-to-landline/mobile/PC calls, IMs, video calls, video-conferencing, file-transfer
    Players: Skype, Gtalk, Jajah, Yahoo’s VoIP, Lycos, phone.com, AltiGen, Micrsoft
  • Gossip is the human equivalent of'social grooming' among primates
  • Skype Introduction
    Software that enables the world's conversations.
    Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users.
    Everyday, people also use Skype to make low-cost calls to landlines and mobiles
  • Skype is a communications tool
    Humans are really, really, interested in things that help us communicate with each other more and better.
    From cave paintings to mobile phones, it’s always the same.
    And this is even more true for young people. They are forging their social identity through conversation.
  • Nature of services
    voice calls over the Internet Calls to other users of the service and, in some countries, to free-of-charge numbers, are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include
    instant messaging,
    file transfer and
    video conferencing
  • Skype is free
    • Free is quite interesting to people. Especially free and good.
    • And it’s more interesting still to impoverished young people!
    • If you tell your friends to get Skype too, you can talk for as long as you like without worrying about the cost or the distance.
  • Skype’s success
    0 to customers in 2.5 years.
    Nearly 200 million customers today.
    Still growing at 200,000 new users every day.
  • Right idea, right time
    There was plenty of internet calling software before Skype. But it didn’t work very well, and lots of people still had slow dial-up internet connections. Plus it was called VoIP, which was a bit off-putting.
    Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access.
    It’s a very ‘native’ product for young people.
  • Simple and easy
    Skype worked really hard on making Skype as easy to install and use as possible.
    We knew it was easy enough when Geoffrey’s grandma could use it. (Geoffrey is one of the original Skypers.)
    Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook…
    • Facebook group
  • Giving influencers new stuff
    Skypecasts are a new way to have conversations with people across the world who share your interests.
    Pick a subject you’re interested in from the directory, and join a hosted call with up to 100 other people from around the world.
    Our early-adopter influencers are helping us pioneer and shape this new way of communicating.
  • Skype feels free
    Skype is free. More than that though, it feels free.
    Free helps people realise that Skype is a different kind of company.
    We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?
  • Skype does a lot
    It’s a fast world. People get bored quickly.
    Part of being committed is keeping doing stuff – it’s not good enough to have done it once.
    The advertising industry’s idea of the reductive ‘big idea’ is no use here.
    It’s about doing lots of little things, that all add up to a rich, complex and involving brand.
  • What didn’t work?
  • What is Video Conferencing?
    • Interactive telecommunication technology
    • Conference between two or more participants at different sites by transmitting audio and video data
    • Tools: Video camera, microphone, speakers on device
  • Video Conferencing Cell Phones: A Bust!
    • Buy a specific phone
    • Cost of the cell phone is expensive
    • Poor image and sound quality
    • Position of the camera is in the back of the phone
    • Awkward
    • Pointless
  • Video Chat Software
  • Skype
    • Software application that allows users to make voice and video calls over the Internet
    • Initial names: “Sky peer-to-peer” and was abbreviated to “Skyper”
    • Since the domain name was taken, the creators dropped the “r” and left the current title “Skype”
    • Special features:
    • Conference Calls with multiple people
    • Send Files instantly
    • Connect to your land line
    • Get your calls forwarded when you’re offline
    • Send Text from skype
    • Incoming calls from anyone
    • Great for individuals and businesses
    • Affordable
    • Free: Both users having Skype accounts
    • Pay as you go or Monthly payment
    • Calls to landlines and call phones
  • Top 3 Video Conferencing sites
    • iChat
    • Must have Mac computer
    • expensive
    • 2009: est. 12%
    • Most businesses use PC
    • Google Talk
    • Both parties have to have gmail account
    • Skype
  • Skype in a Business Aspect
    • Great way to communicate in real time
    • A way to communicate without physically being there
    • Can work anywhere at anytime
    • Better communication
    • Less errors: everyone can look at the document at the same time and communicate
    • Changes are visible
    • Deal with off shore clients
    • Establish and maintain business relationships
    • Improves Customer service
  • Skype and Education
    • Video conferencing with authors
    • Tutor session
    • Language tutor around the world
    • Study sessions
    • Great way to Q & A with teachers and T.As
  • Porter’s model analysis
    New Market Entrants
    Buyer Power
    Supplier Power
    Competitive Rivalry
    Product and Technology Development / Substitutes
  • Competitive Rivalry
    • Jajah: . The service requires no client to download, and doesn't actually use a user's PC to make the call.
    • Yahoo's VoIP Yahoo Messenger
    • Lycos : A bundle of freebies
    • PHONE.COM : With no hardware to purchase, no switching of business phone systems provider
    • VIA TALK : A bouquet of services
    • 8X8 INC. :
  • Buyer Power
    Cost
    Access
    Features
    Quality - video, voice
  • Supplier Power
    IT-Infrasturcture companies e.g. Cisco
    Voice/Video Carrier
  • New Market Entrants
    • MICROSOFT :
    As the VoIP (Voice over Internet Protocol) market continues to grow,
    computing heavy weight Microsoft have announced plans to enter the market with
    the release of their Office Communications Server.
    • AltiGen :
    AltiGen, a provider of VoIP business phones and Microsoft-based Unified
    Communications offerings, has signed a deal with Italian distributor and telecom
    equipment vendor Hypercom.
    The move will allow Hypercom to sell and distribute
    AltiGen VoIP products to companies through Telecom Italia.
  • Subsitutes
    Mobiles with 3G/2G
    Landlines
    Video-conferencing
  • SWOT Analysis
    Strengths
    E-bay
    Skype’s brand equity
    User base
    Conducive environment for growth
    Users
    Culture
    Infrastructure
    Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.
  • Strengths
    Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come
    reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago.
    By the end of 2008, the company had 405 million customers, up 47 percent in a year.
  • Weaknesses
    • Low penetration of broadband
    • relatively low visibility
  • opportunities
    BPOs and call-centers
    Collaborations with leading Indian ISP (like Airtel, Satyam etc) or portals (like rediff , indya.com etc) and bundle free downloads (same strategy followed by Skype in China , Japan)
    Aggressively Advertise Skype out charges in Indian Media
    Plunging broadband rates , large no of citizens, customer base living/working abroad ,booming economy and sheer numbers makes India and also China very good markets and worth fighting for in future
  • In February Skype secured a deal with Nokia under which the world's biggest phone maker will preload Skype software into some of its new smartphones.
  • Threats
    High growth means highly competition
    Easily available subsitutes
    Technology ever changing
    Intelligence agencies
    Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM
    Skype’s two day outage
  • Growth and financial impact
    Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009
    Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come
    Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago.
    By the end of 2008, the company had 405 million customers, up 47 percent in a year.
  • Summary
    A great Web 2.0 business
    Significant growth opportunities
    Leverage on the brand
    Buzzes quite well with everyone!
  • Thank you