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Is There More to Skype Than Hype? |
Case Study Analysis #2 |
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Wednesday Febuary 13th 2013
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Problem Recognition
* Skype cannot determine how to get more users to pay for premium services
* Only generating $100 million dollars per quarter
* Other retailers(competitors; including Yahoo, Microsoft) have begun to provide similar services
* There was reliability issues regarding upgrades that provided set backs
Situation Analysis (SWOT)
Strength | Weakness | Opportunities | Threat |
cost advantage to users is free | Active users has declined by 20% in 2006 | Mobile commerce | Competitors offer same/similar or more innovative products and services |
no expenses of advertising; is mostly done through word of mouth | Weak business model | Research suggest there will be more VoIP users by 2017 | Corporate lawsuits or bans |
User friendly set-up and configuration | Loss of founding leaders (tech vision) | able to merge new platforms i.e. mobile | Telecom competition |
276 million registered | Concern of reliability; spy wear and security threats | | |
Quality of calls has improved | Video quality | | |
able to utilize partnership with eBay and their services; i.e. Paypal | can only be used with persons with same software | | |
Skype service is available internationally and in 27 different languages | Doesn’t work with open source protocols | | |
Able to physically see and hear who you are connected with | | | |
Works in conjunction with wi-fi “hotspots” | | | |
Has become an established name in the VoIP sector | | | |
Problem Definition
In summary, the core problem is that Skype has not met the objectives eBay proposed in the areas of user increase, revenue and profits based on the buy-out agreement set in 2005. eBay is now left with the three (3) alternatives or strategies, including a transformed business model, entering into the mobile commerce industry and new pricing strategies, as ways...