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Essay / Research Paper Abstract
In 2011 Microsoft acquired Skye. This 9 page paper examines Skype, looking at their competitive position, including strengths, weaknesses, opportunities and threats. The analysis is used to assess the way Microsoft could develop the strategy for Skype in order to gain value from the acquisition. The bibliography cites 11 sources.
Page Count:
9 pages (~225 words per page)
File: TS65_TEskypemic.doc
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Unformatted sample text from the term paper:
internet protocol service (VoIP) offering a communication service based on the use of cost effective technology where communication takes place using the internet as the carriage medium. The service started
out as a voice service but now offers video calling and instant message services. Founded in 2003 by Niklas Zennstr?m and Janus Friis, the service is based on a
proprietary software application, it has since been sold to eBay and in 2011 was acquired by Microsoft for $8.5 billion (Sarno, 2011). The service provide free calls between different Skype
users, with charges for calls between Skype users and other users, such as calls made to traditional land lines. The firm was able to gain significant growth during the early
users as a result of the price differential between its own services and the traditional telecoms providers created through the VoIP technology. To assess the way that Microsoft may
develop the firm in order to gain value, it is necessary to look at the firm and the way it competes and the way that the industry is moving in
order to assess the potential for Microsoft. 2. Current Situation Skype is the largest pure play online VoIP supplier, and while it competes with a number of firms,
in the fastest growing market; the mobile apps market, Skype has become the dominant player with an 87% market share (Gordon, 2011). Even before the acquisition by Microsoft the
company had been able to achieve a position where the software was preloaded on 70% of all PCs that were sold worldwide (Barnett, 2010). The firms market share has increased
significantly over time, in 2005 the company managed to gain a market share of 2.9% of all international calls, by 2010 this is increased to 13% (Hodson, 2012). Following the
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