Student Number: 10012274
This report provides an analysis and evaluation on defining Skype’s core business following eBay’s sale of the business. Methods of analysis include an external analysis compromising of consumer and competitor analysis as well as an internal SWOT analysis. The research draws attention to the fact that while Skype has the ability to reach critical user mass, it finds itself in a situation where it is no longer serving the needs of an e-commerce firm and is now re-focusing is core strategy as a technology company. Further investigation reveals that Skype’s disruptive innovations have the ability to create an entirely new dynamic and develop new markets. Moreover, Skype’s immense scalability options, easy and cost effective marketing, and efficient retailing and distribution make it an attractive partner for traditional voice carriers. The report evaluates Skype’s core strengths and concludes it is recommended to pursue integration as part of an established cable and DSL provider. Case Problem
Since its inception in 2003, Skype’s core business has been constantly changing and continues to evolve. One of its owners, eBay is planning on getting rid of Skype, a purchase that had never fit quite well into its auction business (Coles and Eisenmann, 2009). Having experienced four years of eBay management, Skype now finds itself in a position where its core business will undoubtedly be changing once again.
Transforming from being a supporting function to an e-commerce giant, Skype now finds itself back to its roots of focusing on being a technology-driven company. Skype’s key problem relates to redefining its core business in a post-eBay structure.
Skype was acquired to align itself with eBay’s core operations and create value by the perceived synergies that it would accomplish. However, as shown in the IT Value Creation Matrix (Exhibit 1), Skype’s integration failed to achieve the goal of competitive...
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