Skype anlaysis


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Skype business analysis

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  • As a manager, when we look back the successful track of Skype, many points are valuable and helpful for us to deal with our future similar project.
  • Sky owns a 309 million registered users group, a huge customer base 30 percent of Skype retail users also used Skype at work Personal preference and behavior are increasing and creating business opportunities for Skype to go further into business adoption Market penetration & bring positive impact for business decision making Increase chance to attract more users
  • Create a clear business model Skype business model is clear: Enterprise, Enterprise, Enterprise. Skype as of today delivers lots of products to provide enterprise level business solution Enterprise – key to create attractive profit With the resource is being used in a more rational and efficient way by offering and pricing value-added services in the business, business would like to use it to improve their competitive advantage.
  • using technology to overcome barriers to entry into industries Telecom industry is a high barrier industry – huge investment in the field of hardware & infrastructure A cheap voice services rived the entry to telecom market – Skype only a replacement of a traditional function is still not enough cost efficiency and value-added services are needed for business scalability Exploration is when people are at least willing to listen and consider potential benefits of the change. One of the benefits of Change Management here is to help people understand the need for the change and identify how they may benefit from the change thereby reducing resistance. Commitment is typically achieved when the need for the change is understood, leadership is committed, goals are aligned, roles and procedures are clear, and the appropriate stakeholders are involved in making the change happen.
  • Success came from realizing a very BASIC NEED “ Saving money is just the start. Being able to communicate and work efficiently as a team is really important. Skype is also a fun product to use which keeps people motivated and interested in their work.” (Comment from one of Skype business user). Easy install & easy use Quality Security
  • The importance of customer support service Maintain business sustainability Continuous increasing Necessity of customer support Way to hold registered users Way to attract new users
  • Skype anlaysis

    1. 1. Systems MGCR 620 E-Business: Skype and its Impact on the Telecom Industry November 9, 2008 Tomotaka Brink Fushimi [email_address] (260301050 ) Benjamin Carrion Schafer [email_address] (260339078) Tess Hong [email_address] (260332417) Ting Miao [email_address] (260314135) Tom Takahashi [email_address] (260313560)
    2. 2. Skype’s E-business Description <ul><li>VoIP & P2P calls: </li></ul><ul><ul><li>Computer to computer/Skype Phone </li></ul></ul><ul><ul><li>Computer to landline/mobile phone </li></ul></ul><ul><ul><li>Computer to PDA/Blackberry </li></ul></ul><ul><li>Free Software </li></ul>
    3. 3. Skype’s E-business Description <ul><li>Founded in 2002 </li></ul><ul><li>Skype software launched in 2003 </li></ul><ul><li>Acquired by eBay in 2005 </li></ul><ul><li>7 countries, headquarters in Luxembourg </li></ul><ul><li>309 million user accounts (Q1 2008) </li></ul><ul><li>14 million concurrent users (October 2008) </li></ul><ul><li>15.9 billion called minutes (Q1 2008) </li></ul><ul><li>Net sales USD 126 million (Q1 2008) </li></ul>
    4. 4. Skype’s E-business Description <ul><li>Cost Advantage </li></ul><ul><ul><li>Free Skype-to-Skype calls </li></ul></ul><ul><ul><li>Low charge on Skype-to-other </li></ul></ul><ul><li>Multiple Services </li></ul><ul><ul><li>Conference Calls </li></ul></ul><ul><ul><li>Instant Messaging </li></ul></ul><ul><ul><li>File Transfer </li></ul></ul><ul><li>User Advantage </li></ul><ul><ul><li>Easy to use </li></ul></ul><ul><ul><li>High sound quality </li></ul></ul><ul><ul><li>Low equipment cost </li></ul></ul>
    5. 5. Skype’s E-business Description <ul><li>4 competitor categories </li></ul><ul><ul><li>Traditional landlines and mobile phone providers </li></ul></ul><ul><ul><li>VoIP competing with lower call rates </li></ul></ul><ul><ul><li>Internet Service Providers with similar online calling services </li></ul></ul><ul><ul><li>P2P service providers developing similar tools and offering similar services </li></ul></ul>
    6. 6. Rationale in Starting Business <ul><li>The global telecom business generates trillions of dollars in revenue!! </li></ul>
    7. 7. Rationale in Starting Business <ul><li>Skype’s Creators = KaZaa’s Creators </li></ul><ul><li>Having the know-how </li></ul><ul><li>P2P ->   bypassing central servers ->   higher voice quality </li></ul>
    8. 8. Rationale in Starting Business <ul><li>Using “unused processing capacity of its customers” means Skype can provide a telecom service without high capital expenditures </li></ul><ul><li>This means low cost to consumer </li></ul><ul><ul><li>A call to Canada </li></ul></ul><ul><ul><li>Skype: US$0.024/min </li></ul></ul><ul><ul><li>AT&T: US$0.05/min ~ US$0.61/min </li></ul></ul>
    9. 9. E-Business Analysis: Reasons for Success Cost advantage : lower cost structure Easy handling Viral spread being freely downloadable Large community working on compatible solutions for Skype Continuous innovation and expansion of services ( Skype out , Skype In , Video conf .) Agreement with Wal - Mart to sell Skype - certified hardware devices and prepaid cards Partnering with certain computer manufacturers to include Skype Scaling : additional infrastructure is not required
    10. 10. E-business Analysis: Synergies with EBay & PayPal <ul><li>EBay’s Chief Executive Margaret C. Whitman “We can create an unparalleled e-commerce engine.” [Businessweek 2005] </li></ul><ul><li>Lead generation. In addition to paying eBay listing and completed-auction fees, sellers could also pay eBay a fee for getting an Internet call, or lead, via Skype </li></ul><ul><li>U se Skype to expand eBay’s moves into new markets, such as new cars, travel, real estate, </li></ul><ul><li>PayPal has already embedded its service into Skype payment flows, which can boost Skype's revenues and increase PayPal's payment volume </li></ul><ul><li>Skype Send Money, which allows users to send/receive money using PayPal through the Skype client </li></ul><ul><li>Communication via Skype allows buyers and sellers to benefit from being able to communicate directly with each other anytime </li></ul>
    11. 11. E-Business Analysis: Risks In August 2007, Skype experienced an interruption for two days The decline knocked $1 billion + off eBay’s market cap. eBay shares closed down 2.58%.
    12. 12. Summary: Why Skype was Successful
    13. 13. As a manager, what we learned…
    14. 14. Lesson one: Wide customer base create business opportunities (high economic profit)
    15. 15. Lesson Two: Create a clear business model with rapid, global expansion <ul><li>Skype business model: </li></ul><ul><li>First entry advantage. Need for rapid growth. </li></ul><ul><li>Use of the internet for fast, easy, cheap and global market penetration </li></ul><ul><li>Offering high quality, cheap and value-added services </li></ul>
    16. 16. Lesson Three: New IT technology to circumvent higher entry barriers New Technology
    17. 17. Lesson Four: The Value of Simplicity in IT Easy Install Easy Use Single tool for: PC2PC calls Video conf. PC2Phone Phone2PC File sharing
    18. 18. Lesson Five: Sustainability in IT <ul><li>Necessity of customer support </li></ul><ul><li>To hold registered users </li></ul><ul><li>To attract new users </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Voice Quality </li></ul><ul><li>Easy to use </li></ul><ul><li>Cheap </li></ul><ul><li>Multiple services </li></ul>Technological obsolescence is a risk factor for Skype’s business.
    19. 19. Questions….