MIS presentation on Skype business model

1. Skype MIS presentation 09BM8078

2. Introduction to telecom scenario Economy, services, industry Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002 Major players and challenges Opportunities

3. New world order Emerging areas New services: basic telephony, PC-to-landline/mobile/PC calls, IMs, video calls, video-conferencing, file-transfer Players: Skype, Gtalk, Jajah, Yahoo’s VoIP, Lycos, phone.com, AltiGen, Micrsoft

4. Gossip is the human equivalent of'social grooming' among primates

5. Skype Introduction Software that enables the world's conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Everyday, people also use Skype to make low-cost calls to landlines and mobiles

6. Skype is a communications tool Humans are really, really, interested in things that help us communicate with each other more and better. From cave paintings to mobile phones, it’s always the same. And this is even more true for young people. They are forging their social identity through conversation.

7. Nature of services voice calls over the Internet Calls to other users of the service and, in some countries, to free-of-charge numbers, are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing

9. And it’s more interesting still to impoverished young people!

11. Skype’s success 0 to customers in 2.5 years. Nearly 200 million customers today. Still growing at 200,000 new users every day.

12. Right idea, right time There was plenty of internet calling software before Skype. But it didn’t work very well, and lots of people still had slow dial-up internet connections. Plus it was called VoIP, which was a bit off-putting. Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access. It’s a very ‘native’ product for young people.

13. Simple and easy Skype worked really hard on making Skype as easy to install and use as possible. We knew it was easy enough when Geoffrey’s grandma could use it. (Geoffrey is one of the original Skypers.) Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook…

15. Giving influencers new stuff Skypecasts are a new way to have conversations with people across the world who share your interests. Pick a subject you’re interested in from the directory, and join a hosted call with up to 100 other people from around the world. Our early-adopter influencers are helping us pioneer and shape this new way of communicating.

18. Skype feels free Skype is free. More than that though, it feels free. Free helps people realise that Skype is a different kind of company. We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?

19. Skype does a lot It’s a fast world. People get bored quickly. Part of being committed is keeping doing stuff – it’s not good enough to have done it once. The advertising industry’s idea of the reductive ‘big idea’ is no use here. It’s about doing lots of little things, that all add up to a rich, complex and involving brand.

22. What didn’t work?

27. Conference between two or more participants at different sites by transmitting audio and video data

29. Cost of the cell phone is expensive

30. Poor image and sound quality

31. Position of the camera is in the back of the phone

32. Awkward

35. Initial names: “Sky peer-to-peer” and was abbreviated to “Skyper”

36. Since the domain name was taken, the creators dropped the “r” and left the current title “Skype”

37. Special features:

38. Conference Calls with multiple people

39. Send Files instantly

40. Connect to your land line

41. Get your calls forwarded when you’re offline

42. Send Text from skype

43. Incoming calls from anyone

44. Great for individuals and businesses

45. Affordable

46. Free: Both users having Skype accounts

47. Pay as you go or Monthly payment

49. Must have Mac computer

50. expensive

51. 2009: est. 12%

52. Most businesses use PC

53. Google Talk

54. Both parties have to have gmail account

56. A way to communicate without physically being there

57. Can work anywhere at anytime

58. Better communication

59. Less errors: everyone can look at the document at the same time and communicate

60. Changes are visible

61. Deal with off shore clients

62. Establish and maintain business relationships

64. Tutor session

65. Language tutor around the world

66. Study sessions

77. Porter’s model analysis New Market Entrants Buyer Power Supplier Power Competitive Rivalry Product and Technology Development / Substitutes

79. Yahoo's VoIP Yahoo Messenger

80. Lycos : A bundle of freebies

81. PHONE.COM : With no hardware to purchase, no switching of business phone systems provider

82. VIA TALK : A bouquet of services

84. Supplier Power IT-Infrasturcture companies e.g. Cisco Voice/Video Carrier

86. Subsitutes Mobiles with 3G/2G Landlines Video-conferencing

87. SWOT Analysis Strengths E-bay Skype’s brand equity User base Conducive environment for growth Users Culture Infrastructure Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.

88. Strengths Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.

91. In February Skype secured a deal with Nokia under which the world's biggest phone maker will preload Skype software into some of its new smartphones.

92. Threats High growth means highly competition Easily available subsitutes Technology ever changing Intelligence agencies Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM Skype’s two day outage

110. Growth and financial impact Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009 Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.

111. Summary A great Web 2.0 business Significant growth opportunities Leverage on the brand Buzzes quite well with everyone!

112. Thank you