Lets try and apply the adaptive forces model "blow by blow" and see what we get...
Distribution Channels - Anyone with broadband access can get skype.
Complementors- Computers and Internet access.
Competitors - Vonage?
Customers - those who want to be able to make/receive calls to landlines through their Internet Feed. Lots of interest!
New Entrants - ?
Substitutes- MSN, ICHAT, Google Talk. anything that offers the ability to talk via the Internet for free.
Suppliers - N/A
Regulatory Change - N/A
Technological Change - Greater ubiquity of broadband access, cheaper computers/hardware.
Based off the Adapted 7 Forces Model, things did not look too bad for Skype. So what went wrong? Apparently EBay's strategic goals were to integrate Skype into Ebay's infrastructure to allow its customers (EBayers) to communicate as well as to allow skype users to pay for services through EBay's other big money maker, Pay Pal. Unfortunately the return on investment (after two years) did not prove to be a worth while investment at all. I am unaware of how far skype has been integrated into Ebays infrastructure, but at total projected investment of 4 billion dollars, it has proven to be a big mistake...
billso
· 2 years ago
Good comment!
As long as no one is posting or sharing analyses of the companies in our assignments, I'm happy to see comments like this.
Feel free to discuss and post follow-ups about Skype.
IM voice chat isn't a full-on substitute for Skype, as there are several WiFi portable devices and phones that can handle a Skype call without a computer.
There might be some mobile devices can handle an IM voice chat, but I just can't remember if there are. Feel free to Google and post!
Personally, I think eBay management made several poor assumptions when they made the Skype deal. The most thorough due diligence process cannot reduce the risk of bad assumptions.
All Comments
Distribution Channels - Anyone with broadband access can get skype.
Complementors- Computers and Internet access.
Competitors - Vonage?
Customers - those who want to be able to make/receive calls to landlines through their Internet Feed. Lots of interest!
New Entrants - ?
Substitutes- MSN, ICHAT, Google Talk. anything that offers the ability to talk via the Internet for free.
Suppliers - N/A
Regulatory Change - N/A
Technological Change - Greater ubiquity of broadband access, cheaper computers/hardware.
Based off the Adapted 7 Forces Model, things did not look too bad for Skype. So what went wrong? Apparently EBay's strategic goals were to integrate Skype into Ebay's infrastructure to allow its customers (EBayers) to communicate as well as to allow skype users to pay for services through EBay's other big money maker, Pay Pal. Unfortunately the return on investment (after two years) did not prove to be a worth while investment at all. I am unaware of how far skype has been integrated into Ebays infrastructure, but at total projected investment of 4 billion dollars, it has proven to be a big mistake...
As long as no one is posting or sharing analyses of the companies in our assignments, I'm happy to see comments like this.
Feel free to discuss and post follow-ups about Skype.
IM voice chat isn't a full-on substitute for Skype, as there are several WiFi portable devices and phones that can handle a Skype call without a computer.
There might be some mobile devices can handle an IM voice chat, but I just can't remember if there are. Feel free to Google and post!
Personally, I think eBay management made several poor assumptions when they made the Skype deal. The most thorough due diligence process cannot reduce the risk of bad assumptions.