Output Diagnosis

Output Diagnosis

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Output Diagnosis

Introduction

Skype is a software application and voice-over-Internet protocol service created in 2003 by Janus Friis and Niklas Zennstrom, and since 2011 it belongs to Microsoft. Skype allows a number of users to interact with each other by instant messaging, video and voice via Internet. Calls can be made free of charge within Skype network, while mobile and landline phone calls are charged on user account system through debit card. It also facilitates transferring of files, pictures and videoconferencing.

Since September 2011, Skype has 663 million users. Skype has headquartered at Luxembourg. Most of their employee and development team are situated in Estonia, Tartu and Tallinn offices. Skype has a client-server and a hybrid peer-to peer system; it also facilitates background processing on users' PC while Skype software is running. However, few network administrators have forbidden the use of Skype on education, home, government and corporate because of citing reasons like excessive bandwidth usage, inappropriate resource usage and security concerns.

This paper analysis outputs of Skype by using Nadler-Tushman Congruence model and also discusses how they are aligned with the strategy.

Discussion

Organizational Level

Nadler-Tushman Congruence model is classified into three levels namely organizational, group and individual levels. An organizational level analysis is consist of environmental inputs; strategic orientation - a set of design components; and output variety such as stakeholder satisfaction, productivity and performance (Nadler & Tushman, 1980).

General Environment

Skype seals in the service industry and customer satisfaction is the prime concern for them. The key goals of Skype are to satisfy stakeholders and improve overall performance. The external environment is not complex but moderately uncertain. Skype must be aware of changing preferences of customers and provide appropriate response to their concern. Skype operates on a international basis and should be attuned to diverse country and governmental requirements in its network. Skype appears rationally concerned about latest breakthroughs in telecommunication industry to deal with future challenges.

Industry Structure

Industry is moderately competitive and profit pressure comes from three key forces such as fairly low threat of new entrants, substitute product threats is moderate such as competitors of Skype are Google Talk, SIP and H.323-based services, Linphone, Empathy, Ekiga services. Lastly, there is severe rivalry among firms.

Strategy

The primary strategy of Skype is a sophisticated differentiated strategy. Skype attempts to meet their strategic and financial objectives by offering a high-quality and unique products. Skype aims to sustain its domination in the high-end segment.

Culture

Skype engender customer centric and quality culture within workplace. These values are observable the way it deals with its customer and the image it works to retain (Elenurm, 2007).

Analysis

The inputs, design components and outputs of Skype have been evaluated to know how well they fit together. First, there is a need to assess the fit between the strategic orientation and environmental inputs. Skype moderate uncertainty and complexity in the general environment stated that it is flexible to deal with some significant dependence but enough to manage. The alignment between its environment and strategic ...