Skype Case Study

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.

1.2 Technology Uncertainty

The technology uncertainty arise that the Skype system is based on the computer with internet connection as well as those advance phone embedded with 3G or WiFi. This may limit the usage and the spread of Skype system because of the infrastructure requirement. For instance, the people in not well developed countries might be out of the reach to the Skype system because of the poor internet connection and lack of the devices. On the other hand, Skype encounter system wide malfunction during the computer OS-Microsoft in a routine upgrade. This cause blackout to a few million users, thus Skype lost the users trust. Furthermore, the user privacy issue also among the concern of the consumer and the unregulated membership as the increasing crowded in Skype. Some of the consumer may misuse this technology to scam other users.

1.3 Competitive Volatility

The competitive volatility takes place with the increase of the market competitors. A consequence from the emerging of the social network and other internet voice messenger providers, the Skype's consumer might has been diverted into the different platform of the similar