Skype Business Strategy

Topics: Skype, EBay, Janus Friis Pages: 14 (3495 words) Published: May 14, 2011
Skype, a global opportunity

Table of contents

Introduction2

I. Skype Business strategy3
a.Freemium Business model specificity3
i.Model based on a free core service3
ii.Skype’s performs with the individual segment,
but drive revenues with the Corporate one.5
iii.Competitors7
iv.« URL stands for Ubiquity first, Revenues after »8 b.Skype’s Development Strategy based on Partnerships10 v.Skype facilitates partnerships10
vi.Skype’s implementation development raise some regulatory issues in some countries12

II. Present market entry strategy in the Middle East.13
a.“Skype looks to developing market for growth” (1)14 vii.Bahrain’s market14
viii.Skype current offer16
b.Business strategy16

Conclusion18

Work cited and Readings19

Introduction

Skype, an E-bay company headquartered in Luxembourg, is an Internet communication tool that offers to call anywhere in the world and many other features.

In 2003, Niklas Zennström and Janus Friis founded Skype. Their last start-up experience, Kazaa, focused themselves on the development of Peer-to-Peer file sharing. Its disruptive innovation based on the P2P allowed their users to share copyright protected material over the network. It was purchased by the Australian company Sharman Networks. Niklas Zennström and Janus Friis business success gave them the notoriety among the partners and consumers of the industry, which they used when they launched Skype.

In 2009, Skype counts 560 million users worldwide, and generated $716 million in revenues.[1] In 2010, it recorded 45 billion Skype-to-Skype minutes use, 37.5 billion more minutes than in 2006 (7.5 billion minutes)[2]. It is supposed to double its revenue to $1.0 billion in 2011. Skype represented now the largest provider of international voice-based communications with 8% of world’s calling minutes and translations in 28 languages and presence in 225 countries.

This impressive growth and worldwide development suppose an effective development and marketing strategy. Skype knew how to use its disruptive innovation in order to positioned itself as the first major and most downloaded software and the fastest growing phone company.

I. Skype Business strategy

Freemium Business model specificity

Model based on a free core service

Skype use a Freemium business model, meaning that its basic offer is free and the added services and capacities are payable. It is the first reason of its huge success as its users value the free service.

The free service allows the current user to make Skype-to-Skype free voice and video calls, to chat through the instant messaging with up to 50 people, to transfer files and also to implement a conference calling (up to 5 people).

The other payables features include:

- “Skype-In: This program allows people using landline phones to reach a Skype user on his or her computer via a regular telephone number. The telephone number can be assigned for 3 months at a time for $12, or $24 for an entire year.

• Voice Conferencing: This feature was introduced in 2006 and allows customers to hold video conference calls with other Skype users. This feature became available for the Linux OS in early 2008.

• Skype To Go: The newest feature available to Skype Pro users, allows people to make international calls from their mobile phones, at the Skype-Out rate they use for all calls from their computer.

• Skype Mobile: In April 2008, Skype released Mobile Skype, compatible with around 50 different phones. The list of compatible phones continues to grow as programming and technology continue to sync.”[3]

• SIP or Skype for Business is launched in 2009 and enables to select a Skype manager who will allocate Skype credit among the firm in order to facilitate the use of Skype as a corporate tool. [pic]

[pic]
Image 2 – Skype’s range of services.[4]

The entire service ranged...
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