Skype Case Analysis
Meredith Currin
October 30, 2012
BADM 468
Skype Case Analysis
(1) VoIP represents a great opportunity for telecom service providers to develop flexible and responsive offerings. These services can be developed as premium services by fully using the strengths of the Internet or internal intranets. These services can also be developed to use efficiencies that the Internet and intranets offer that traditional networks and network providers do not. However, it is not all too easy. While current and potential telecom service providers can build imaginative offerings and business plans; they must still have keep mind the competitive environment surrounding the VoIP market. Skype’s VoIP industry has a few competitors such as Comcast Corporation, Time Warner Cable, Cox Enterprises, and Vonage Holdings. As we have seen in the wireless / cellular service provider market, this can mean threats from existing companies who consolidate their position and acquire additional market share by purchasing their competition. As far as substitutes go, the VoIP industry has little or no substitutes. The Internet and broadband-based VoIP market could soon face competitors from the wireless or cellular service providers via wireless local area networks, WLANs. Buyers have some sort of power when it comes to purchasing or using Skype’s VoIP. Wireless or cellular and traditional phone service providers have seen demands from consumer’s drive their price per minute via lower tiered minute and flat rate plans. Pay VoIP providers are entering not at the top, but closer to the bottom of these pricing levels. Suppliers have most power when supplying to its customers. The penetration rate of broadband access in the United States, the lifeblood of pay VoIP services, is around 55 to 60 percent. This effectively caps the number of customers that have access to VoIP services and places more power in the hands of the broadband access providers. These conditions create a highly competitive
October 30, 2012
BADM 468
Skype Case Analysis
(1) VoIP represents a great opportunity for telecom service providers to develop flexible and responsive offerings. These services can be developed as premium services by fully using the strengths of the Internet or internal intranets. These services can also be developed to use efficiencies that the Internet and intranets offer that traditional networks and network providers do not. However, it is not all too easy. While current and potential telecom service providers can build imaginative offerings and business plans; they must still have keep mind the competitive environment surrounding the VoIP market. Skype’s VoIP industry has a few competitors such as Comcast Corporation, Time Warner Cable, Cox Enterprises, and Vonage Holdings. As we have seen in the wireless / cellular service provider market, this can mean threats from existing companies who consolidate their position and acquire additional market share by purchasing their competition. As far as substitutes go, the VoIP industry has little or no substitutes. The Internet and broadband-based VoIP market could soon face competitors from the wireless or cellular service providers via wireless local area networks, WLANs. Buyers have some sort of power when it comes to purchasing or using Skype’s VoIP. Wireless or cellular and traditional phone service providers have seen demands from consumer’s drive their price per minute via lower tiered minute and flat rate plans. Pay VoIP providers are entering not at the top, but closer to the bottom of these pricing levels. Suppliers have most power when supplying to its customers. The penetration rate of broadband access in the United States, the lifeblood of pay VoIP services, is around 55 to 60 percent. This effectively caps the number of customers that have access to VoIP services and places more power in the hands of the broadband access providers. These conditions create a highly competitive