Case Study Paul Dawson Agenda

• Case Study

• Paul Dawson

Agenda

• Business Model

• Background

• Core Technology

• Revenue Stream

• Performance

• Competitive Advantage & Marketing

• Competition

• Growth Strategy

• Questions

Service that allows for calling through the internet.

• Service that allows for calling through the internet.

• B2C

• Pure Digital Model for Core Service

Founded in 2003 by Niklas Zennström and Janus Friis.

• Founded in 2003 by Niklas Zennström and Janus Friis.

• Goal was global change in the way calls are made

VoIP

• VoIP

• First transmissions in 1973
• Internet phone software offered to the public by Vocaltec in 1995
• Broadband infrastructure not available or widely
• used at that time

Freemium

• Freemium

• SkypeIn
• SkypeOut
• SkypePlus

• Hardware

• Webcams
• Headsets

Nine million registered users in the first year

• Nine million registered users in the first year

• Over one billion registered users in 2013

• 280 million active daily users on average

• Two billion call minutes per day on average

• Acquired by Microsoft for $8.5 billion in 2011

Superior call quality

• Superior call quality

• Sophisticated routing
• Quality Servers

• Marketing Strategy

• Customers refer the service to their friends
• Metcalfe’s law of network value

Disruptive Technology

• Disruptive Technology

• As of September 2013 telecommunications operators were losing roughly $100 million per day in revenue due to Skype and other similar services.

• Traditional phone providers have reduced fees and bundled phone service with cable and internet.

• Google Voice offers free VoIP to non VoIP calling for US inbound calling

In 2011 Skype partnered with Comcast to allow subscribers to do videoconferencing through their Television sets.

• In 2011 Skype partnered with Comcast to allow subscribers to do videoconferencing through their Television sets.

• In 2013 Skype offers free video messaging service for Windows and Mac OS, iOS, Android and BlackBerry

Skype’s success can be attributed mainly to:

• Skype’s success can be attributed mainly to:

• a. Aggressive Marketing

• b. Superior call quality

• c. Being the first provider of VoIP calling

• d. Competitive pricing

Skype’s core business model is best described as:

• Skype’s core business model is best described as:

• a. Bricks and clicks

• b. Brick and mortar

• c. Cloud computing

• d. Pure digital

Skype benefits from which law?

• Skype benefits from which law?

• a. Network value

• b. Law of attraction

• c. Moore’s law

• d. 5 second rule

http://gigaom.com/2011/06/13/comcast-skype-video-chat/

• http://gigaom.com/2011/06/13/comcast-skype-video-chat/

• http://www.emory.edu/BUSINESS/readings/skype/eBay-Skype.pdf

• http://www.engadget.com/2013/06/17/skype-video-messaging-launches-free-unlimited/

• http://www.inferse.com/8940/microsoft-skype-serious-threat-telephone-operators/

• http://www.nytimes.com/2009/09/02/technology/companies/02ebay.html?scp=8&sq=silver+lake++skype&st=nyt&_r=0

• http://www.princeton.edu/~achaney/tmve/wiki100k/docs/Metcalfe_s_law.html

• http://www.techbusiness.me/files1/skype.case.pdf

• http://www.voipinsights.com/voip_history.html

• http://online.wsj.com/news/articles/SB10001424052748703730804576314854222820260?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052748703730804576314854222820260.html