At&T vs Skype

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This analysis provides an overview of the current and prospective opportunities for Skype, a Voice-over Internet Protocol (VoIP) company. The report finds that Skype’s revenue has decreased dramatically in the last three years mainly due to the increase in competition. Josh Silverman, president of Skype, realizes some decisions must be made in order to remain an industry leader. The company’s current growth plan strategy includes three phases. Phase 1 though already completed, was to become operational on at least one platform, with one revenue system, and focus on one market with one primary service. Phase 2 consist of developing many platforms, diversified revenue streams, many conversation modes, many regions and market targets. Phase 3 encompasses multiple market segments, established products, regional ubiquity, and mature target markets. Though Skype is well developed there are still potential growth opportunities. These opportunities include expansion of existing calling plans and prices, incenting existing users to ‘sell’ Skype to new users and collaborating with cell phone providers. With the market growing rapidly the next phase taken by Skype is crucial in their development. By using the current opportunities Silverman can advance the company as well as attack other providers in the industry. SYNOPSIS OF CASE FACTS

Skype is a software application that essentially allows users to use any telephone or videoconference services over any internet connection. This transmission is called VoIP (as shown in Appendix A) and because of the reasonable long-distance and local call packages this option has become an attractive economical alternative to landline or traditional cell phone plan. Josh Silverman, president of Skype, is faced with making the next strategic move that will put Skype in a better position to successfully compete in the telecommunications industry. In order for Silverman and his leadership team to proceed with the next steps it is...
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