Advantages Of Skype

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MT5012: MARKETING OF HIGH-TECHNOLOGY PRODUCTS AND INNOVATION Case Study1 Is there more Skype than Hype? Submitted By: Prateek Singhal Student Id: A0119978H 1. Describe the environment in which Skype competes based on the three characteristics of high-tech markets (Chapter 1). Answer. Skype competes based on the three characteristics of high-tech markets: 1. Market Uncertainty : • Market uncertainty for any high technology product is a result of customer anxiety, which arise due to fear, uncertainty and doubt. Same situation is faced by the customers of Skype. Customers face such a situation because of many similar products in the market and all products are equally good at service. • Skype faces the issue of uncertainty over…show more content…
VoIP has already been used by majority of users and this is because of sudden boom in smart phone market and freely available application for VoIP service. Now the current users are the late majority of users who are accessing the VoIP in countries in which wireless internet connectivity has increased. Hence it can be classified as late majority stage. 5. What would be an ideal beachhead for Skype to focus its efforts on? Answer. Ideal beachhead for Skype is to identify clear, defined customer segment that will most likely to be the first adaptors. Skype should focus on the following points: • Free PC to PC calls business is always successful for Skype. It should target such consumers with better and new products. Since, such customers trust on the Skype’s service over other service providers. • Currently Skype is owned by Microsoft and it is focusing on the bigger market segment as compared to Skype’s original consumer base. • Skype is now integrated into most Microsoft consumer products such as Windows. This move definitely increase Skype’s customer base. • Microsoft has ensured that Skype is working on customers machine by providing default access to Skype through Windows…show more content…
No restriction on the number of calls within the network. 3. High availability of the service, since there are no issues of server overload etc. 4. Skype has nearly no operational cost, so it can provide it’s service for free to users. Cons: 1. Peer to peer model is very distributed in nature and very unmanageable to troubleshoot; because of this model it is hard to troubleshoot the problems. 2. Peer to peer exposes the user to threat of virus or hack. Because Skype opens the connection port for anyone in the world to connect to any person. 8. What are the characteristics of a business that can successfully implement an advertising-based business model? Does Skype possess those characteristics? Answer. Characteristics of a business that can successfully implement an advertising-based business model are: 1. Business should have large number of active use base, who are interacting with service on frequent basis. 2. The business should have user information such as demographic details and service usage patterns etc. so that analytics can be used to deliver correct ads to potential customer. 3. Cost of advertisement delivery should not be high, since it is our one source of revenue
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