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Online communication industry analysis
 

Online communication industry analysis

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An industry analysis of the online communication market including mail and chat.

An industry analysis of the online communication market including mail and chat.
By Kumar Priyadarshi and Ann Thomas of Vinod Gupta School of Management, IIT Kharagpur

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    Online communication industry analysis Online communication industry analysis Presentation Transcript

    • Presented By Kumar Priyadarshi 09BM8069 Ann Thomas 09BM8025 Communication
    • Some Numbers
      • If email was a country, its 1.88 billion users would make it the largest in the world . Bigger than China, bigger than the populations of the USA and European Union combined
      • 294 billion emails  are sent each day
      • 13.4 billion : the number of direct marketing dollars that went
      • into email in the US in 2010
      • $583 billion : The return from that investment on email
      • marketing
      • 53% of all companies in the world actively block public IM/Chat
      • 45 million licensed users of Lotus Sametime
      Reference: IBM Systems Magazine ; Dr. Douglas J. Fiore: School Community Relations No figures older than November 2010
    • The Big Names
    • How they Run the Business
      • Automated email scanning system to push highly targeted ads
      • Fees for >7 GB storage
      • Gmail Revenues : Gmail had revenue per 1,000 page views of 6 cents in 2005 which increased to about 30 cents in 2009
      Google Share Price : $ 574 Ref: www.trefis.com :Analyzing a product’s impact on the company’s share price (20 Mar 2011)
    • How they Run the Business
      • Installable in PCs and over handheld devices such as I-Phone and Nokia N900.
      • Skype had around 443 million user accounts, which generated around 620 million in revenue (2009)
      • Business Model of Skype
        • Freemium
        • Prepaid credit users
        • Hardware licensing from hardware vendors such as Nokia
        • Advertising
      • Currently, Microsoft and Yahoo's webmail services are earning revenue by selling premium email accounts and ads.
      • $19.99 per year for premium account
      • Yahoo! Messenger - collects charges when a call is made from PC to a Phone; advertising
      • Windows Live ( Messenger + Hotmail) earns $1/user/year
    • How they run the Business
      • Meebo
        • Venture Capital Funding from Sequoia
        • Advertisements on sharing
        • Surveys
      • Digsby
        • Installing bundled applications like toolbars, homepages, Ad-Stallers, Back-ground Processing Apps; free of ads
    • How they run the Business
      • OoVoo
        • 3 way Video Chat
        • Video chat with up to six friends, family or colleagues at once.
        • Phone Calls
        • Desktop Sharing
        • Video conference
    • PEST
    • Business Communication
      • For a big enterprise (15000 employees)
      Reference: Forrester Research Report Should Your Email Live In The Cloud? A Comparative Cost Analysis; 2010 http://www.cio.com/article/474672/Gmail_vs._Traditional_E_Mail_Savings_Adding_Up
    • Costing
      • Then Why Still E-Mail Hosting?
      • Safety, Backup, Spam Protection, Authentication, Encryption
      • Uptime.
        • Gmail Outages
        • Google promises at least 99.9% uptime for its Premium customers
        • Nevertheless, it’s a leap of faith for an organization
      • Reluctance to train employees who have grown used to Outlook
    • The Future – Going Mobile ?
      • In 2010, the number of visitors to email/chat sites
        • via PCs - declined 6 %
        • via mobile devices - up 36 %
      • By 2013, mobile phones will overtake PCs as the most common Web access device worldwide.
        • Total number of PCs in use will reach 1.78 billion
        • Base of smartphones and browser-equipped enhanced phones will exceed 1.82 billion
      Reference: Gartner Predictions for IT Usage 2010 and Ahead
    • The India Story
      • Business Email Provider (Small Players)
          • net4
          • HotDak Mail
          • 123 india
      • 11 million mobile internet users
      • double since last year
      • Total internet access via PCs:
      • 52 million
      Web Mail Provider Number of users Growth rate Gmail 18 Million 23% Yahoo Mail 16.8 Million 4% Rediff mail 6.25 Million 4% Windows Live mail 2.6 Million 10%
    • Porter Five force Analysis
      • Rivalry among Existing Firms
      • Market Share of different Webmail Providers
      • Comparison of different Email Providers
      • http://en.wikipedia.org/wiki/Comparison_of_webmail_providers
      Web Mail Provider Total No. of users Growth Rate Windows Live Hotmail 364 Million -4% Yahoo Mail 280 Million 11% Gmail 193.3 Million 43% AOL Mail 89 Million 19%
      • Threat Of New Entrants
      • Facebook
          • Stickiness: The amount of time users spend on a site. Facebook stickiness quotient is very high
          • Convergence: All communication on a single page: Chat, Photo and Video Upload, Email, Social Networking
          • Trendy: Coolness quotient of facebook .
          • The growing facebook universe
          • Switching Cost to Buyers: Low if Facebook otherwise very high, Low exit barrier, Time to market is very low
      Porter Five force Analysis Contd.
      • Determinants of Buyer Power
      • Total no. Of email users: 1400 Million
      • Switching Cost : Moderate.
      • Internet users uses more than one e-mail address
      • Internet users threat of forward integration i.e. Facebook
      • Threat of Substitute Products
      • Substitute Products: Social Media (LinkedIn, Facebook, Twitter)
      • Relative quality of substitute: security, Interface, convergence
      • Relative Price of Substitute:
      • Switching cost to Internet users:
      • Business Users: Very High
      • Normal Users: Moderate
      Porter Five force Analysis Contd.
      • Determinants of Supplier Power
      • Resources: IT infrastructure, easily available at competitive price
      • Programmers: easily available.
      • Need new innovative ideas for good products and being a step ahead in market
      • Suppliers:
      • Mail2world Inc: designs, delivers, and supports a suite of business-class, Web based e-mail and collaboration services.
      Porter Five force Analysis Contd.
    • Opportunities and Threats
      • Opportunities
      • Cloud Adoption
      • Collaboration applications such as email, chat , File Sharing on Cloud
      • Promotional Email Delivery :
      • Mails to priority Inbox
      • Privacy Issues with Social Networks
      • Threats
      • Outage time
      • Security of email leaks
      • Archive Maintenance
      • Electronic communications of some employees in financial services and medical-related businesses are required by law to be archived for years, and data handled by those users must be secured.
    • Future
      • Future Trends
      • Voice chat and video chat on Social Networking
      • Digitally signed Voice chat/Video Chat
      • Extensive use of Video chat in Developing Nations
        • Checkups via Video Chat e.g. Project Hope: Mobile E office in Rural New Mexico
        • Use of remote stethoscope creates a digital audio file that can be saved and even shared with the patient, so she, too, can hear what the doctor is listening to.
      • Mobile Video Chat
      • Virtual Reality during chatting
    • Entry into Webmail
      • Increasing sophistication
      • Small webmail players can no longer compete
      • A good web-based user-interface is a one time expense, but still small players can't afford it
      • Also, big storage quotas require losing money at least initially, and small players typically don't have deep pockets to take that route.
    • Kumar Priyadarshi Ann Thomas Vinod Gupta School of Management IIT Kharagpur Thank You