Skype vs at&T
Skype VS AT&T Case Analysis Trinh Nguyen MGMT 599: Strategic Management in Global Environment Dr. Ernesto Escobedo September 21, 2012
Background Skype was found in 2003, headquarter in Luxembourg, and now is a division of Microsoft Corporation. Skype provides voice, video calling, instant messaging, and short messaging services through Voice-over Internet Protocol (VoIP). With the increasing internet users, in nine short years, Skype has 124 million active users (5). Skype users can talk, chat, video conferences for free through the internet, and a small charge if call to landline or mobile telephones. When Skype introduced VoIP to the world, it was not the first company; VocalTech was the company that brought VoIP to the market. However, technology was not as advanced as today, every user had to have the same set up, and quality was not good, VoIP was not as popular as today (4). Technologies improved over time, Skype took advantage of that to gain customers. Skype’s experiences positive revenues every year, however Skype’s revenues did decrease dramatically in 2006 from 685% to 95% in 2007 (2). The reason could have been AT&T introduced VoIP in 2004 (3).
SWOT Analysis
Strengths
Since 2003, Skype has become one of the most popular, well known companies provide VoIP. Over 124 million active users (5), 40 million people online at peak time for daily communication (1), Skype has proved they are capable of providing excellent services even at peak time. For people that do not use Skype, they heard about Skype and know what it is for. This is a big advantage in marketing because these people might need VoIP in the future and Skype would come up first in the minds. The disadvantage of VoIP helps Skype become more exclusive. To be able to use VoIP, users have to be on the same application. With a large number of users, more people are willing to join Skype when they want to communicate with other Skype
Background Skype was found in 2003, headquarter in Luxembourg, and now is a division of Microsoft Corporation. Skype provides voice, video calling, instant messaging, and short messaging services through Voice-over Internet Protocol (VoIP). With the increasing internet users, in nine short years, Skype has 124 million active users (5). Skype users can talk, chat, video conferences for free through the internet, and a small charge if call to landline or mobile telephones. When Skype introduced VoIP to the world, it was not the first company; VocalTech was the company that brought VoIP to the market. However, technology was not as advanced as today, every user had to have the same set up, and quality was not good, VoIP was not as popular as today (4). Technologies improved over time, Skype took advantage of that to gain customers. Skype’s experiences positive revenues every year, however Skype’s revenues did decrease dramatically in 2006 from 685% to 95% in 2007 (2). The reason could have been AT&T introduced VoIP in 2004 (3).
SWOT Analysis
Strengths
Since 2003, Skype has become one of the most popular, well known companies provide VoIP. Over 124 million active users (5), 40 million people online at peak time for daily communication (1), Skype has proved they are capable of providing excellent services even at peak time. For people that do not use Skype, they heard about Skype and know what it is for. This is a big advantage in marketing because these people might need VoIP in the future and Skype would come up first in the minds. The disadvantage of VoIP helps Skype become more exclusive. To be able to use VoIP, users have to be on the same application. With a large number of users, more people are willing to join Skype when they want to communicate with other Skype
References: 1.) Skype. (2012). About Skype. Retrieved from http://about.skype.com/ 2.) Strickland, A., Zarzour, M. (2010). Skype versus AT&T and the Future of Telecommunications. University of Alabama 3.) AT&T, (2012). Milestones in AT&T History. Retrieved from http://www.corp.att.com/history/milestones.html 4.) Worldnet. (2010). A Brief History of VOIP. Retrieved from http://www.worldnet-long-distance.com/history-of-voip/ 5.) Bright. P. (2011, May 10). Microsoft Buys Skype for $8.5 Billions. Why, Exactly? Retrieved from http://www.wired.com/business/2011/05/microsoft-buys-skype-2/ 6.) Dolcourt. J. (2012, March 23). Google + Hangouts now calling any phone. Retrieved from http://news.cnet.com/8301-1035_3-57403603-94/google-hangouts-now-calling-any-phone/ 7.) Alexander, A. (2012, January 24). Smartphone Usage Statistics 2012. Retrieved from http://ansonalex.com/infographics/smartphone-usage-statistics-2012-infographic/#