Mgmt 599 Skype vs at&T

In: Business and Management

Submitted By jstring
Words 766
Pages 4
Overview:
Skype is a global player in the telecommunications industry. It offers its customers Voice-over Internet Protocol (VoIP) service, which is telephone via an Internet connection. These services include but are not limited to; instant messaging; voice calling; video calling’ short message services using a number of product platforms available at any time a user might want its services.. Skype uses the internet at its main platform leading the communication transition from hardware to software. VoIP calls are billed per amount of information sent over the Internet; Skype users communicate for free with other Skype users and pay only a small fee for long-distance calls to landlines.

Key Issues and Assumptions:

VoIP’s market share in the overall global telecommunications market is still minimal, which had a roughly 5% market share by the end of 2010. For Skype, the main issue internally is the mismatch in the relationship between revenue growth rate and company growth rate. Growth in revenue shrunk from 685% in 2006 to 37% in 2008. Skype executives have realized that the main reason for the flattening in revenue rates is the company’s cheap international calling rate and the free user-to-user calls and videos. Furthermore, VoIP is still a small competitor in the industry, but competition in the industry is increasing rapidly, and Skype needs to determine how to remain an industry leader.

There is a question if consumers will begin to look at expanded VoIP services as a real alternative. Industry experts have suggested that the growth of Internet telephony technologies will signal the demise of the PSTN - growth of VoIP and attendant decline of landline use. Skype needs to place more focus on attacking AT&T and other big companies, and implement a long-term strategy.

Analysis and Problem Identification

Issues:

First and foremost, Skype needs to…...

Similar Documents

Booker T Washington vs. W.E.B. Dubois

...Booker T. Washington “Up from Slavery” I detected a message in the first chapter of “Up from Slavery” other than the horrors of slavery, even though that message was painfully clear. The other message that I detected is that a shallow and indulgent existence deprives a person of developing rugged individualism, character and common sense. I felt this because of the sentences, “the black man got nearly as much out of slavery as the white man did. The hurtful influences of the institution were not by any means confined to the Negro.” “The slave system on our place, in a large measure, took the spirit of self-reliance and self-help out of the white people. My old master had many boys and girls, but not one, so far as I know, ever mastered a single trade or special line of productive industry.” The slaves seemed to possess a deeper sense of self and spirituality and realized that kindness toward other human beings and honor were more rewarding than material things. I was very surprised and awed by the fact that even though the slaves were provided with abhorrent living conditions and often endured immense cruelty at the hands of their masters, they still felt love and kindness towards them and they showed compassion towards the whites when they themselves fell upon hard times. One passage that confirms the importance of honor and the feeling of compassion is “In fear of “Yankee” invasions, the silverware and other valuables were taken from the “big house,”......

Words: 1142 - Pages: 5

Skype

...network providers. Skype is a pioneer in the voice over communication network. It is the most popular voice communication service in the world. I am interested in learning what Skype is and the many function it has to offer. Skype was built by the designers of Kazaa person to person network and is based on the fast track network that underlies the Kazaa network (3). It was founded in 2003 and based in Luxembourg. In 2005 Skype was acquired by EBay and in 2009 an investment group led by Silver Lakes purchased the company. Microsoft the worldwide leader in software purchased Skype in May 2011 with hopes to take it to a new level (2). Over the past few years I’ve heard a lot of people talking about this new way of communicating with friends and family via the internet, phone, or tablet. What really caught my attention was when they told me that you are able to see the person that you are talking to and it’s in real time. I thought that was fascinating. But, what really drew me in was when I was informed that the service was free! I intend to give a brief explanation of how Skype works and the different option that are offered to the costumer. In doing this I will go over the advantages and disadvantages of this technology and what’s being done to correct the deficiencies. The major questions that will be address is can Skype eliminate the two major issues that come up when operating a VoIP program? This is network performance and information security. Skype is a......

Words: 2899 - Pages: 12

Skype

...1. 2. Skype’s business model is illustrated in Business Model Generation (98-99), but the identification of customer segments and the value proposition are rather brief and generic. Prepare a more detailed Business Model Canvas for Skype based on the information provided in the case. Key Partners * Payment providers (Visa, Master, PayPal) * OS developers (Windows, Linux,) * Third party websites which provide downloadable software * Hardware manufacturers (Logitech, Plantronics) * Landline and mobile service providers * ISP’s Key Activities * Software Development * Skype.com maintenance and promotion * Service provisioning * Infrastructure Development Value Proposition * Free video and voice calls, IMs, and File sharing with other Skype users. * Cheap option to * Place calls to landlines and mobiles. * Receive calls from landlines and mobiles. * Do Group video calls Customer Segments * Anyone who wants to make free pc to pc calls. * Anyone who wants to communicate using video. * Anyone who want to access inbound phone calls from their pc. * Anyone who wants to make outbound calls to landlines or cell phone. * Businesses who want to incorporate VoIP into their own offering. “Click to Talk” * Anyone who wants a low cost additional phone line. Key Resources * Software Developers * Technical Architects * Servers * Client Software * Skype.com * CRM......

Words: 2212 - Pages: 9

Skype vs Att

...S Voice-over Internet Protocol market namely Comcast Corporation, Time Warner Cable, Cox Enterprises and Vonage have embraced internet technology and wireless broadband making VOIP one of the most sought out service. Skype’s partnership with AT&T only fuels the boost usage of Voice- over Internet Protocol usage over land line usage. In the wake of these technology advancements, it became clear to entrepreneurs that offered voice traffic and internet service would be one of the next major applications to take full advantage of Voice-over Internet Protocol. There are more advances than innovations in the VOIP world. That’s because some of the most important developments had more to do with commercial and political maneuvers than with technical creativity. One of the most prominent developments was net net neutrality which enables user access to participating networks that advocates no restrictions to materials throughout the modes of communication allowed online ("The mobile World," 2011, para. 4). Further, this industry also have to consider pressures influenced by the government ( FCC) that could dismantle net neutrality by limited user access as well as decrease the power of big wireless communication giants like AT&T. Still, such maneuvers often helped spread the benefits of VOIP much more than technical innovation. And collectively, the advances brought some already evident trends in the increasing integration of voice with other applications and services, not......

Words: 2193 - Pages: 9

Skype

...Case Analysis: Skype v AT&T and the Future of Telecommunications Patrick LaCross MBA 710 General Skype was first released in 2003 by its designers, who had a vision of connecting the world with a simple, inexpensive form of communication via the Internet with no limitations on time of day or day of the week. Their original mission was “to enable the world’s conversation. This has changed over time as they try and achieve various objectives, such as continue to be the leader in the transfer of communication from hardware to software, and goals such as increase and maintain similar levels of revenue and company growth, all while maintaining their low rates or free-of-charge services. However, their mission is to preserve their status as “the fabric of real-time communication on the web. Corporate Governance Corporate Responsibility SWOT Analysis Strengths One of Skype’s greatest strengths is that it has always been a pioneer of international telecommunication. Weaknesses Opportunities In 2010, Skype only had 1% of VoIP industry market share in the United States, a huge area for growth opportunity. Threats SFAS Suggested Course of Action 1. As a personal adviser to Silverman and the rest of the Skype team, what would you recommend their next move be to continue the growth of Skype (collaborate with cell phone providers, restructure price, change advertising)? I would recommend that Skype collaborate, merge, or form a partnership with a major......

Words: 499 - Pages: 2

Mgmt 599 Herman Miller Case

...taxes & minority interest |2.5 % |6.07 % |11.5 % |9.7 % |8.5 % | |Income Tax expense |.5 % |1.9 % |3.9 % |3.0 % |2.7 % | |Minority Interest |- |.006 % |.005 % |- |.04 % | |Net Earnings |2.1 % |4. 2 % |7.6 % |6.7 % |5.7 % | By conducting this analysis, students should see the difficulty faced by Herman Miller and other businesses in a recession. Despite cutting general, selling and administrative (SG&A) expenses by over $78 million ($395.8 in 2008 vs. $317.7 in 2010) as percentage of sales SG&A has risen. It is difficult to cut expenses as fast as sales can fall in a recession. Managers pick the “low-hanging fruit” early in the process. Given that Herman Miller has already made drastic workforce cuts in 2003 and pay cuts in 2009, it gets tougher to further reduce costs. The firm’s five-year average net profit margin was 5.26%. Although 2010’s figure of 2.1% was far from the peak of 7.6% reached in 2008, it was positive. | Fiscal Years Ended | | |2010 |2009 |2008 ......

Words: 4027 - Pages: 17

Mgmt 599 Herman Miller Case

...taxes & minority interest |2.5 % |6.07 % |11.5 % |9.7 % |8.5 % | |Income Tax expense |.5 % |1.9 % |3.9 % |3.0 % |2.7 % | |Minority Interest |- |.006 % |.005 % |- |.04 % | |Net Earnings |2.1 % |4. 2 % |7.6 % |6.7 % |5.7 % | By conducting this analysis, students should see the difficulty faced by Herman Miller and other businesses in a recession. Despite cutting general, selling and administrative (SG&A) expenses by over $78 million ($395.8 in 2008 vs. $317.7 in 2010) as percentage of sales SG&A has risen. It is difficult to cut expenses as fast as sales can fall in a recession. Managers pick the “low-hanging fruit” early in the process. Given that Herman Miller has already made drastic workforce cuts in 2003 and pay cuts in 2009, it gets tougher to further reduce costs. The firm’s five-year average net profit margin was 5.26%. Although 2010’s figure of 2.1% was far from the peak of 7.6% reached in 2008, it was positive. | Fiscal Years Ended | | |2010 |2009 |2008 ......

Words: 4027 - Pages: 17

Model a vs Model T

...improvements and influence on history over the Model T The Ford Model A was a upgrade to the Model t that soon became very popular. During the 1920’s there was many other car manufacturers , but Ford was the most popular and affordable to the people. Henry Ford produced many cars, but had two very popular models, these being the Model T and the Model A. Both models made by Ford were very prominent and affordable, and made for mass production to fulfill the needs of our growing society. The Model T was a admirable car during its production, but soon owners realized that it had a few flaws. Henry ford saw these small issues and decided to resolved them with a upgrade, with the new Model A. Henry Ford’s many new improvements made the Model A a great advancement compared to the Model T for the Ford company in the automobile industry. The Model A was a great improvement and influence to car history and the advancements we have today in our society. The Model T was a great automobile introduction to the United States, a mass produced car with lots of new interesting specs. The Model T had many new features to a car that many Americans had not seen in automobiles. For example the Model T had a four cylinder, with detachable cylinder heads for easy access and repair (“Model T.” Encyclopedia Britannica). Although when the Ford Model T was introduced there was no paved roads and was very rural compared to today. During the start of production the Model T was available in grey, green,......

Words: 1661 - Pages: 7

Skype vs Atnt Case Analysis

...SKYPE Vs AT&T AT&T Overview The American Telephone and Telegraph Company (AT&T) was incorporated in New York in 1885 as a subsidiary of the American Bell Telephone Company. AT&T’s corporate charter laid out the firm’s mission: “Connect one or more points in each and every city, town or place in the State of New York with one or more points in every other city, town or place in said State and in each and every other of the United States, Canada and Mexico; and each and every of said cities, towns and places is to be connected with each and every other city, town or place in said states and countries, and also by cable and other appropriate means with the rest of the known world.” AT&T began building its network out from New York in several directions. The first line, to Philadelphia, opened in 1886. AT&T reached a major milestone in 1892, when it began telephone service between New York and Chicago. Keeping pace with the growing demands for telecommunications required continuous innovation, improvement and expansion in each area. Transmission media evolved from open wires to cable, coaxial cable, microwave relays and to fiber optics. Skype Overview Skype was built by Sharman Networks after they bought Kazaa, a file sharing program from Niklas Zennstrom of Sweden and Janus Friis of Denmark. Skype leveraged the same type of peer-to-peer networking idea that Kazaa was built upon, but applied it to voice transmission instead. The idea was that the more people that used Skype,......

Words: 1055 - Pages: 5

Skype

...of the most popular Swedish international companies is the well-known enterprise Skype. It allows users from all over the world to communicate with each other via the Internet from their computers, tablets and mobile devices making video and voice calls, sending instant messages and even sharing files. The company was founded in 2003 and its international headquarters are located in Luxembourg. Its annual revenue nearly amounted to $ 2 billion in 2013 and although it counted more than 560 million of registered users by the end of 2009 it has only between 1.000 and 5.000 employees. In fact, in one day in March 2013 Skype users spent more than 2 billion minutes connecting with each other and 300 million of users used Skype on a monthly basis in August 2015. Furthermore Skype is a software business model with very low fixed costs and hardly any capital requirements. Moreover the free Skype-to-Skype calls cost the company nothing to provide and the word-of-mouth advertising significantly reduces user acquisition costs. As the core features of Skype, namely the Skype-to-Skype calls, are for free, Skype makes money mainly through Skype credits or monthly subscriptions. These credits allow Skype users to make low cost calls to mobile phones or landline phones, send text messages or purchase a Skype number in order to receive calls from anywhere in the world on one’s Skype account. In addition Skype also made money through a few other channels, for example selling related......

Words: 1848 - Pages: 8

Skype vs at&T

...1. INTRODUCTION Skype is an eBay company founded in 2003 that created voice communications software that allows users to communicate with people around the world via the internet. (Skype Limited, 2007) “Their particular spin has been to create a business model in which the basic service is free.” (Gosling, 2006) 1.1 Problem The problem is that this is not new software or service as other phone service providers offer the same or similar service. They must show how their service will outdo the rest. 1.2 Purpose The purpose of this case study is to explore what makes Skype different from its competition by analyzing the strengths and weaknesses of the company and by determining the opportunities and threats they may face. 2. SWOT ANALYSIS 2.1 Strengths Skype has several advantages that place it above its competition. First is the cost advantage to users. It’s free. That is if the person you’re calling is a Skype user as well. But if they are not, then calls placed to normal phones or mobile phones are charged a very low price. Typically this cost is about $0.02 per minute for calls made in the USA. (HL7 Systems & Services, 2007) Second, Skype has no expenses associated with marketing and advertising. With more than 25 million registered users, Skype’s reputation was built mainly by word of mouth. (Gaskin, 2005) Therefore, unlike their competitors, they don’t have to spend money trying to find customers. Third would be the “user-friendly” set up and......

Words: 8090 - Pages: 33

Skype vs. at&T

...Skype vs At&t Case Study 1. What are the dominant economic characteristics of the VoIP Industry? PSTN charges based on minutes or even seconds while VoIP charges based on data usage. VoIP services often charge a flat fee and in Skype’s example, they offer free talk between Skype users. VoIP is also inexpensive to operate as the infrastructure is already there. VoIP is also considered part of the information service industry and not the telecommunication service industry giving it an advantage politically against PTSN (compliance with telecom laws). Against PTSN, VoIP is expected to grow substantially and is eating away at the market share of PTSN. 2. What does the five forces analysis reveal about the chances for profitability in the VoIP industry? (Prepare a five forces analysis) Threat of Substitues: Substitute for VoIP is low – as it is a substitute for PSTN Threat of New Entrants: The threat of new entrants is high in this market. As a rule in economics, companies will enter this market until there is a profit to be earned. Companies like Microsoft, Google, and AOL are just a few that are planning to compete in the VoIP market. Bargaining power of Buyers: The bargaining power is moderate because of the ease of switching to other companies. Customers are “fought for” among competitors. Bargaining Power of Suppliers: Weak- Limited bargaining power – VoIP providers are widespread and infrastructure is readily available. Net neutrality......

Words: 653 - Pages: 3

Skype vs. at&T

...Management 401 April 5, 2012 Term Paper Motivation: A Key to Success I currently work for a ministry in Homewood called Scott Dawson Evangelistic Association. It is a ministry that has been around for 25 years now. Scott Dawson is the founder of the association and is my current boss. He is great at building a compatible team and has mastered the responsibilities of being a CEO of his company. I have asked him some questions about motivation and how he over the years has kept his employees motivated. I have worked with Scott Dawson for almost a year now and he does a great job of keeping our team motivated, and is constantly encouraging us. I have been working for Scott since this past summer when I interned and I have experienced countless occasions where Scott has motivated me. How does Scott Dawson keep his team motivated and successful? Before I go any further, I want to discuss motivation and what is. What is motivation? Greenberg states, “Motivation is defined as the process of arousing, directing, and maintaining behavior toward a goal (Greenberg 162).” There are three main components of motivation: arousal, direction, and maintenance. When each of these components has been met, one will experience motivation. How do you motivate someone to work? Greenberg says, “There are ten major factors that motivate people to work, these include (from most motivating to least motivating): 1). Challenging projects, 2). Team spirit, 3). Getting paid, 4). Promotion......

Words: 1679 - Pages: 7

At&T vs Skype

...Slide 1-Title slide Slide -2 bianca (What is the Alexander technique?) The Alexander technique is a way of learning how you can get rid of harmful tension in your body. It is a way to feel better, and move in a more relaxed and comfortable way... the way nature intended. It can be applied to many daily activities such as sitting, lying down, walking, and lifting. Slide 3- ant (How was it founded?) F.M. Alexander was an Australian actor who began to experience chronic laryngitis whenever he performed. This nearly ended his career. To solve his problem, he studied the use of his own instrument—himself! What he found was that his use of his vocal mechanism was connected to his posture, emotions, and his thoughts. He had a bad habit to tense and contract when he recited. To fix his problem, he slowly developed a technique to get rid of the habit. Since his health improved so much, his friends and several of the doctors he had consulted before he developed the technique persuaded him to teach others what he had learned. Slide 4- Bianca (How is it applied?) The Alexander Technique can be applied any part of your body. It retrains the body to work as it was designed to! Some examples of bad habits that we can apply this to are: (look at pictures) – Slouching – hunching – throwing the head back – clutching a pen • basically its working on your basic movements. Slide 5- explain and demonstrate how it works!! Slide 6- ant (who......

Words: 513 - Pages: 3

Case Analysis Paper at&T vs. Skype

...AT&T Vs. Skype Elmo Scuby DeVry University Keller School of Business Author’s note This analysis will identify the key issues revealed in the case study, “Skype vs. AT&T and the future of telecommunications” (Strickland et al 2011). The analysis will explore the current state of the telecommunications industry with the rapid emergence of the Voice-over Internet Protocol (VoIP) technology, wireless communications and the effects on traditional landline or what is known as Publicly Switched Telephone Network (PSTN). This effort will look into current problems and successes with increased focus on AT&T and Skype. Additionally, this paper will attempt to provide a perspective on the key issues with assumptions of what some of the causal factors may have been. Finally, what the companies’ leadership may consider for the future. Prior to examining the key issues of Skype and AT&T, what is Skype vs. AT&T? Skype was currently one of the industry leaders in VoIP and desired to challenge AT&T and other large phone companies. The telecommunication business is certainly going through a technological revolution with increased demands for faster speeds and services. Additionally the infrastructure is in demand to grow with the customer needs. AT&T along with several other landline based companies owned a major portion of the Internet infrastructure. Skype requires access to the Internet by way of Internet Service Providers (ISPs) in order for Skype to...

Words: 1485 - Pages: 6

ROGAINE MEN'S FOAM (3 MONTH SUPPLY) 5% minoxidil topical 3 6 9 for men regaine | Minecraft - PS4 | Nodame Cantabile