ENTP 6390 – Business Model Innovation|
2. Skype’s business model is illustrated in Business Model Generation (98-99), but the identification of customer segments and the value proposition are rather brief and generic. Prepare a more detailed Business Model Canvas for Skype based on the information provided in the case. Key Partners
* Payment providers (Visa, Master, PayPal)
* OS developers (Windows, Linux,)
* Third party websites which provide downloadable software * Hardware manufacturers (Logitech, Plantronics)
* Landline and mobile service providers
* Software Development
* Skype.com maintenance and promotion
* Service provisioning
* Infrastructure Development
* Free video and voice calls, IMs, and File sharing with other Skype users. * Cheap option to
* Place calls to landlines and mobiles.
* Receive calls from landlines and mobiles.
* Do Group video calls
* Anyone who wants to make free pc to pc calls.
* Anyone who wants to communicate using video.
* Anyone who want to access inbound phone calls from their pc. * Anyone who wants to make outbound calls to landlines or cell phone. * Businesses who want to incorporate VoIP into their own offering. “Click to Talk” * Anyone who wants a low cost additional phone line.
* Software Developers
* Technical Architects
* Client Software
* CRM staff
* Self Service
* Free Online Forums (Communities)
* Word of Mouth
* Web Sales
* Third party applications and websites like idroo for Skype. * Hardware Partnerships
* Software Development
* Website and Online forum management
* Fixed Interconnection Fee
* Gateway with equipment
* Free (Up-Sale Model)
* SkypeOut, SkypeIn, Skype for Business.
4. The case identifies four different Skype offerings. Develop a table that describes each offering, identifies the target market segments, and addresses the full range of competing alternatives available to the targeted customers.
Offering with Description| Target Market Segment| Available Competing Alternatives| Skype’s Basic Computer-Computer Service * Allowed Skype users to send Voice, Video, Text messages and to transfer files for free with each other| 1. Users who want to communicate using video (PC to PC). 2. Users who want to send voice, text, or files (PC to PC).| AOL’s AIM, MSN and Yahoo! Messengers, Gmail, TrillionSIP phone, deltathree’s iconnectHere, Net2Phone (1)| SkypeOut * Allowed users to make cheap long distance and local calls to landlines and cellular phones either with flat rate or per minute charging| 1. Users who want to make cheap local calls.2. Users who want to make cheap long-distance calls.3. Users who want to get new services not available on their current phone lines.| All available landlines and cellular service providersVonageCablevisionSIP phone, deltathree’s iconnectHere, and Net2Phone, Yahoo!(2 and 3)| SkypeIn * A subscription based service which allowed Skype users to receive calls from preselected, conventional phone numbers carried on the public switched telephone network| 1. Users who want to receive calls on their PC from traditional phone lines.2. Users who need another phone line for home/personal/small-business use.3. Users who want a telephone number in a different area code.4. Users who want to get new services not available on their current phone lines. | Vonage and some other VoIP providers who positioned themselves as full-fledged substitutes for regular phone serviceCell phone and landline phone service providers. (2 and 3)| Skype for Business *...