Skype Case Study

Published: 2021-09-16 11:15:10
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Category: Technology

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Skype is a popular software application provides VoIP service, that allow users to set make free phone calls, chat and video chat through their computer or mobile device from any corner around the world via internet connection. However, Skype do make a little charging fee for call per minute to landline and cell phone. Skype is among the pioneer in VoIP with peer-to-peer technology with gaining rapid consumer acceptance. The keywords for Skype to compete in the high-tech market are included market uncertainty, technology uncertainty and competitive volatility.

1.1 Market Uncertainty
The market uncertainty occurs as consumer needs are keep changing, neither the technology producer nor consumer are able to predict the market trend. Consumer will always enquire for more advances VoIP service to satisfy their needs and to solve their problems. Furthermore, it is difficult to forecast the how fast VoIP or how long it will be survived in the market arena. This related to the adoption rate in the market. It is also rather difficult to project the consumer respond in the change of business model. For example, the eBay bought over the Skype for $2.6million, it was expected higher growth in revenue than it actual achieve after meld the Skype technology in eBay. This may due to the consumer not welcome the changes in the new Skype paid system compare to previous free one. At the same time, consumer is doubtful about which VoIP system will be the dominant design in the market. As nowadays there are a lot of VoIP software applications in market that offer the free internet calling and most of these programs are not able to call the different VoIP providers.

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