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

  1. 1. Skype MIS presentation<br />09BM8078<br />
  2. 2. Introduction to telecom scenario<br />Economy, services, industry<br />Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002<br />Major players and challenges<br />Opportunities<br />
  3. 3. New world order<br />Emerging areas<br />New services: basic telephony, PC-to-landline/mobile/PC calls, IMs, video calls, video-conferencing, file-transfer<br /> Players: Skype, Gtalk, Jajah, Yahoo’s VoIP, Lycos, phone.com, AltiGen, Micrsoft<br />
  4. 4. Gossip is the human equivalent of'social grooming' among primates <br />
  5. 5. Skype Introduction<br />Software that enables the world's conversations. <br />Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. <br />Everyday, people also use Skype to make low-cost calls to landlines and mobiles<br />
  6. 6. Skype is a communications tool<br />Humans are really, really, interested in things that help us communicate with each other more and better.<br />From cave paintings to mobile phones, it’s always the same. <br />And this is even more true for young people. They are forging their social identity through conversation. <br />
  7. 7. Nature of services<br />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 <br />instant messaging, <br />file transfer and<br />video conferencing<br />
  8. 8. Skype is free<br /><ul><li>Free is quite interesting to people. Especially free and good.
  9. 9. And it’s more interesting still to impoverished young people!
  10. 10. 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. </li></li></ul><li>
  11. 11. Skype’s success<br />0 to customers in 2.5 years.<br />Nearly 200 million customers today.<br />Still growing at 200,000 new users every day.<br />
  12. 12. Right idea, right time<br />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.<br />Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access.<br />It’s a very ‘native’ product for young people.<br />
  13. 13. Simple and easy<br />Skype worked really hard on making Skype as easy to install and use as possible.<br />We knew it was easy enough when Geoffrey’s grandma could use it. (Geoffrey is one of the original Skypers.)<br />Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook…<br />
  14. 14. <ul><li>Facebook group</li></li></ul><li>
  15. 15. Giving influencers new stuff<br />Skypecasts are a new way to have conversations with people across the world who share your interests.<br />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.<br />Our early-adopter influencers are helping us pioneer and shape this new way of communicating.<br />
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  18. 18. Skype feels free<br />Skype is free. More than that though, it feels free.<br />Free helps people realise that Skype is a different kind of company.<br />We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?<br />
  19. 19. Skype does a lot<br />It’s a fast world. People get bored quickly.<br />Part of being committed is keeping doing stuff – it’s not good enough to have done it once.<br />The advertising industry’s idea of the reductive ‘big idea’ is no use here.<br />It’s about doing lots of little things, that all add up to a rich, complex and involving brand.<br />
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  22. 22. What didn’t work?<br />
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  26. 26. What is Video Conferencing?<br /><ul><li>Interactive telecommunication technology
  27. 27. Conference between two or more participants at different sites by transmitting audio and video data
  28. 28. Tools: Video camera, microphone, speakers on device</li></li></ul><li>Video Conferencing Cell Phones: A Bust!<br /><ul><li>Buy a specific phone
  29. 29. Cost of the cell phone is expensive
  30. 30. Poor image and sound quality
  31. 31. Position of the camera is in the back of the phone
  32. 32. Awkward
  33. 33. Pointless</li></li></ul><li>Video Chat Software<br />
  34. 34. Skype<br /><ul><li>Software application that allows users to make voice and video calls over the Internet
  35. 35. Initial names: “Sky peer-to-peer” and was abbreviated to “Skyper”
  36. 36. Since the domain name was taken, the creators dropped the “r” and left the current title “Skype”
  37. 37. Special features:
  38. 38. Conference Calls with multiple people
  39. 39. Send Files instantly
  40. 40. Connect to your land line
  41. 41. Get your calls forwarded when you’re offline
  42. 42. Send Text from skype
  43. 43. Incoming calls from anyone
  44. 44. Great for individuals and businesses
  45. 45. Affordable
  46. 46. Free: Both users having Skype accounts
  47. 47. Pay as you go or Monthly payment
  48. 48. Calls to landlines and call phones</li></li></ul><li>Top 3 Video Conferencing sites<br /><ul><li>iChat
  49. 49. Must have Mac computer
  50. 50. expensive
  51. 51. 2009: est. 12%
  52. 52. Most businesses use PC
  53. 53. Google Talk
  54. 54. Both parties have to have gmail account
  55. 55. Skype</li></li></ul><li> Skype in a Business Aspect<br /><ul><li>Great way to communicate in real time
  56. 56. A way to communicate without physically being there
  57. 57. Can work anywhere at anytime
  58. 58. Better communication
  59. 59. Less errors: everyone can look at the document at the same time and communicate
  60. 60. Changes are visible
  61. 61. Deal with off shore clients
  62. 62. Establish and maintain business relationships
  63. 63. Improves Customer service</li></li></ul><li>Skype and Education<br /><ul><li>Video conferencing with authors
  64. 64. Tutor session
  65. 65. Language tutor around the world
  66. 66. Study sessions
  67. 67. Great way to Q & A with teachers and T.As</li></li></ul><li>
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  77. 77. Porter’s model analysis<br />New Market Entrants<br />Buyer Power<br />Supplier Power<br />Competitive Rivalry<br />Product and Technology Development / Substitutes<br />
  78. 78. Competitive Rivalry <br /><ul><li>Jajah: . The service requires no client to download, and doesn't actually use a user's PC to make the call.
  79. 79. Yahoo's VoIP Yahoo Messenger
  80. 80. Lycos : A bundle of freebies
  81. 81. PHONE.COM : With no hardware to purchase, no switching of business phone systems provider
  82. 82. VIA TALK : A bouquet of services
  83. 83. 8X8 INC. : </li></li></ul><li>Buyer Power<br />Cost<br />Access<br />Features<br />Quality - video, voice<br />
  84. 84. Supplier Power<br />IT-Infrasturcture companies e.g. Cisco<br />Voice/Video Carrier<br />
  85. 85. New Market Entrants <br /><ul><li>MICROSOFT : </li></ul>As the VoIP (Voice over Internet Protocol) market continues to grow, <br />computing heavy weight Microsoft have announced plans to enter the market with<br /> the release of their Office Communications Server.<br /><ul><li>AltiGen : </li></ul>AltiGen, a provider of VoIP business phones and Microsoft-based Unified <br />Communications offerings, has signed a deal with Italian distributor and telecom<br /> equipment vendor Hypercom. <br />The move will allow Hypercom to sell and distribute<br />AltiGen VoIP products to companies through Telecom Italia.<br />
  86. 86. Subsitutes<br />Mobiles with 3G/2G<br />Landlines<br />Video-conferencing<br />
  87. 87. SWOT Analysis<br />Strengths<br />E-bay<br />Skype’s brand equity<br />User base<br />Conducive environment for growth<br />Users<br />Culture<br />Infrastructure<br />Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.<br />
  88. 88. Strengths<br />Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come<br />reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago.<br />By the end of 2008, the company had 405 million customers, up 47 percent in a year.<br />
  89. 89. Weaknesses<br /><ul><li>Low penetration of broadband
  90. 90. relatively low visibility</li></li></ul><li>opportunities<br />BPOs and call-centers<br />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)<br />Aggressively Advertise Skype out charges in Indian Media<br />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<br />
  91. 91. 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.<br />
  92. 92. Threats<br />High growth means highly competition<br />Easily available subsitutes<br />Technology ever changing<br />Intelligence agencies <br />Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM<br />Skype’s two day outage<br />
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  110. 110. Growth and financial impact<br />Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009<br />Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come<br />Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago.<br />By the end of 2008, the company had 405 million customers, up 47 percent in a year.<br />
  111. 111. Summary<br />A great Web 2.0 business<br />Significant growth opportunities<br />Leverage on the brand<br />Buzzes quite well with everyone!<br />
  112. 112. Thank you<br />