Skype Business Strategy
Skype, a global opportunity
Table of contents
Introduction 2
I. Skype Business strategy 3 a. Freemium Business model specificity 3 i. Model based on a free core service 3 ii. Skype’s performs with the individual segment, but drive revenues with the Corporate one. 5 iii. Competitors 7 iv. « URL stands for Ubiquity first, Revenues after » 8 b. Skype’s Development Strategy based on Partnerships 10 v. Skype facilitates partnerships 10 vi. Skype’s implementation development raise some regulatory issues in some countries 12
II. Present market entry strategy in the Middle East. 13 a. “Skype looks to developing market for growth” (1) 14 vii. Bahrain’s market 14 viii. Skype current offer 16 b. Business strategy 16
Conclusion 18
Work cited and Readings 19
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.
Table of contents
Introduction 2
I. Skype Business strategy 3 a. Freemium Business model specificity 3 i. Model based on a free core service 3 ii. Skype’s performs with the individual segment, but drive revenues with the Corporate one. 5 iii. Competitors 7 iv. « URL stands for Ubiquity first, Revenues after » 8 b. Skype’s Development Strategy based on Partnerships 10 v. Skype facilitates partnerships 10 vi. Skype’s implementation development raise some regulatory issues in some countries 12
II. Present market entry strategy in the Middle East. 13 a. “Skype looks to developing market for growth” (1) 14 vii. Bahrain’s market 14 viii. Skype current offer 16 b. Business strategy 16
Conclusion 18
Work cited and Readings 19
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.