MIS presentation on Skype Business Model

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

MIS presentation on Skype Business Model

by Amit Tiwari on Mar 17, 2010

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MIS presentation on Skype Business Model — Presentation Transcript