E-Business: Skype in China

Thèmes abordés

Skype E-Business China, a specific market to focus on & the entrance strategy The strategies suggestions for Skype to tap on Chinese market

Résumé du document

Skype is the leader in terms of communication through IP addresses via the web. This project has for main objective to set up a new business strategy in the aim to develop its presence in China.
In a first time, we have seen that Skype is the leader but the competition is present with MSN by Windows and Yahoo. Moreover, the most dangerous one is coming with Google which had the need to be present in every market. They just succeeded in taping on this market via "Google Voice" thanks to their Gmail service. It is why Skype must innovate and restructure their strategy in the aim to avoid a too dangerous competitor.

China represents the biggest potential for companies as Skype. The second largest economy of the world represents also the largest number users of Internet but not only with also cell phones and traditional phones.
The problem is that China is making troubles for Skype with China Telecom who decided to eject Skype from China due to a non loyal competition thanks to their laws.
The challenge for Skype is to find a new way of entrance strategy by partnerships, analyzing the key players and to target the right customers.
We are going to plan this project by answering the 3 key questions when we are building a business plan for market strategy: Where are we? Where are we going? And how will we get there?

Extraits

[...] Enter this market is an obligation and a challenge to find how. The first recommendation is so to copy Google business model in terms of professional services by creating a global communication tool with mail, voice, audio That is exactly how biggest companies as Apple succeed: Taking ideas already existing and making it better. The second recommendation is to take the opportunity of the increase of mobile phones. [...]

[...] This huge tool is growing up as the demand which is increasing thanks to people in general but mainly thanks to companies, business companies which have to integrate new ways o communication to their strategy. In all environments of companies, in internal and external vision, it is interesting to use Skype in terms of costs. Skype and other competitors as Windows live messenger are using new software, a performing system called VOIP (Voice over Internet Protocol) which allow everyone to reduce costs of communication and to use it on an international level. Moreover, it is unlimited. [...]

[...] For professionals, the best solution is to offer a complete service as Google by adding a mail service which will permit to have different ways of communication. In the second recommendation, I suggested to adapt their product to the public area with cell phones, the technology which represent the main increase in China. The solution is one more time to find partnerships and to sign agreements with mobile providers. Recommendations The recommendations we can make are the both strategies to enter Chinese market. [...]

[...] This project has for main objective to set up a new business strategy in the aim to develop its presence in China. In a first time, we have seen that Skype is the leader but the competition is present with MSN by Windows and Yahoo. Moreover, the most dangerous one is coming with Google which had the need to be present in every market. They just succeeded in taping on this market via “Google Voice” thanks to their Gmail service. [...]

[...] That is exactly what Skype has to apply as a strategy. There are two strategies to suggest. One is for each market. The first one would deal with the public market based on mobile phones. The second one would deal with the professional market mainly based on a new service proposed (as Google strategy). The strategy Corporate: Specialization strategy: The company limited itself to one line of work: communication. Within specialization strategy there are 3 different politics of specialization: Penetration, market development and product development. [...]