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Essay / Research Paper Abstract
This 7 page paper presents an analysis of Skype based on the inputs of the Nadler and Tushman congruence model. The analysis looks at the different inputs, starting with strategy, then looking at environment, resources and history. The paper is written following the acquisition of Skype by Microsoft, with the aim of identifying ways that Microsoft may be able to add value to the combined post acquisition organization. The bibliography cites 10 sources.
Page Count:
7 pages (~225 words per page)
File: TS65_TEskypecon.doc
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in the way the former parent company; eBay were unable to realise. To achieve this goal it is necessary to assess Skype and the way that they compete. The congruence
model is a useful approach, assessing the inputs and how they support the strategy. If these elements of Skype are examined they can give the Microsoft management a clear picture
of the firm in order to facilitate planning. 2. Inputs The congruence model facilitates an examination of the firm starting with the different inputs; inputs are the starting point
for an analysis, it is the inputs that will help to determine strategy and the transformation process that creates the outputs. Inputs may be divided into four categories; environment, resources,
history and strategy (Nadler and Tushman, 1980). A full analysis will identify many factors; this paper will be limited to some of the most critical inputs due to space constraints.
2.1 Strategy Arguably one of the most important inputs for Skype is the strategy. This will be dependent on other inputs, but it is strategy that is key to
the success of the firm. Porter (1980) has defined three generic strategies that will provide a firm with a competitive advantage; cost advantage, differentiation and focus. The strategy followed by
Skype is not that of focus, as the firm is clearly seeking to appeal to a broad market; all those with an internet connection who wish to use communication tools.
The strategy of appealing to the mass market can be seen by looking at the mission of Skype which been stated by Silverman as to be "the fabric of real-time
communication on the web" (Barnett, 2010). This leaves two other potential strategies. If Skype had a cost advantage it is highly unlikely that eBay would have sold the firm
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