Inputs Diagnosis

Abstract

This paper aims to identify and analyze the different inputs of voice-over-Internet Protocol software application “Skype”. The strategy of the company would also be compared to the competitive strategies proposed by Porter. Skype is probably one of the most famous software applications today. Its vast customer-base and universal recognition is evident in today's global society. Its attractive features allow customers to communicate with each other by instant messaging, voice and video interface. Currently, Skype has more than 663 million registered users all over the world; who frequently use Skype for communication. Skype is regarded as a user-friendly software and millions of people communicate everyday using Skype (Toor, 2011).

Inputs Diagnosis

Introduction

Skype is originally a creation of Niklas Zennström and Janus Friis, in the year 2003 and is owned by Microsoft from the year 2011. It is a service providing proprietary voice-over-Internet Protocol. It allows its users to exchange dialogue (communicate) with the people on their network by means of video, voice and instant messaging through the Internet. The traditional telephone number can also be dialed and calls can be made using skype, these calls to landline or cell phone are charged using the debt user account process. Whereas, the users of this service, who are on the same network; can make free calls to each other. The service has also become a real hit because of the various features like video conferencing, file transfer and data sharing.

There are about 663 million registered Skype users. It is operated and run by Microsoft, having its headquarters at Luxembourg of Skype division. It is very different from its other counterparts as it is a fusion of client-server and peer to peer system and uses the backdrop processing on the systems that it is running the software of the service. This is how the name “Skype” was originated; it was initially proposed to be Sky peer-to-peer. The service has been banned on many networks as the governmental level with the concerns of security, unlimited banned-width and an easy and unlimited excess.

The focus of this report is to discuss the strategic planning of Skype, application of its strategy on the Nadler-Tushman Congruence Model. We also intend to identify its strategy based on the competitive strategies proposed by Michael Porter.

Discussion

We will identify the core “inputs” of the company. A comparison of the company's inputs would be done and an association would be drawn while relating them to “Porter's Competitive Strategies”. Also, an analysis of the company's inputs would be done by applying the “Nadler-Tushman Congruence Model” and recommendations would be made. So far, the organizational strategy of Skype has been to outplay its competitors by providing the most cost effective services and in demand selling features. It is imperative for Skype to look for every strategy available that could help them in being cost efficient. Up until now, they have managed to remain the most cost efficient in their services. It has also helped the company in selling its products and sustaining the market ...