| WORK CASE 15 | Case Study 15 | Bus5480 Strategic Management Professor: Dr. Uchenna Nwabueze | Skype versus AT&T and the Future of Telecommunications | 4/8/2012 | Prepared by: James Whetsel
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Executive Summary
This report was written to analyze the competition among the Voice-over Internet Protocol (VoIP) industry segment, especially as it relates to the relationship between Skype and AT&T and the competition between the VoIP market and the land line market. In analyzing this segment we found that VoIP is a growing industry in what has historically been predominately a land line telecommunication company such as AT&T.
The industry segment is faced with a rivalry type competitive market that is
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With a roughly 5 percent market share by the end of 2010, VoIP was still a small competitor in the industry.
A major opportunity for VoIP providers was to capitalize on the cellular market. Experts predicted that, by 2019, half of all mobile calls would be over IP networks. The IP connections would be available through VoIP applications that ran through a cellular device. Mobile VoIP applications are expected to reach 278 million users, generating a $32.2 billion profit.
What does the five forces analysis reveal about the chances for profitability in the VoIP industry?3
1. Current sellers competing in the market * It's been good times to be a VoIP user, and bad ones to be Skype. * To a great extent, up until now Skype has had a lock on the consumer P2P VoIP market, and even though it’s recent move into business VoIP hasn't been universally well-received, things looked rosy for the company in that market as well. * But a trio of competitors makes the future less rosy for Skype. Yahoo, the well-financed startup Jajah, and the big Web site Lycos have all released no-cost or low-cost VoIP P2P solutions recently, attempting to muscle in on Skype.
2. Threat of new competitors’ market entry * Possibly the most intriguing of the group is the European-based Jajah. The service requires no client to
Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.
The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.
The Canadian cellular service’s industry is comprised of approximately 15 cellular providers. These operators employ approximately 16,000 individuals and generate more than CAN$10B in revenues annually, which represents almost 30 percent of the Canadian telecommunications market. The Canadian wireless industry has been experiencing an annual growth rate three times that of any other Canadian telecommunications sector. This is very significant as Canada is in the top 10% in the world for broadband penetration.
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
Executive summary Raising smartphone estimates Forecasting smartphones based on TCO Linking our TCO analysis to the addressable market Smartphone volumes to grow at CAGR of 26% Price point work also shows 1.1bn units long term Significant growth being seen in the low end A specific growth opportunity within China LTE could be a game changer Improving device availability LTE speeds could drive new services Coverage expansion of LTE networks Aggressive rollout plans in US and China An upgrade cycle like none before A war of ecosystems….. Apple – the iOS and Mac ecosystem Google/Android – a one trick pony? Windows 8 – what about the upgrade cycle? Developer dynamics are critical Smartphone economics Carriers have seen margin pressure Smartphone economics What can carriers do? Smartphones – winners and losers Apple scope for share gains exist on multiple fronts Samsung – a strong second Nokia – heading for third position in smartphones Multiple Android vendors may struggle HTC – still bleeding share Motorola Mobility/Google – losing steam in the US Sony – change of
In order to provide potential access to a wide variety of markets, a company should attract customer using a number of different services for example multimedia so they are not just focused on the mobile telecommunications, they are broadening their product line. Vodafone customer base ranges from the young to the corporate user to the more mature market.
Get to know how we use Skype for business as our in/out board, and to describe daily work
Skype is a video chat program that allows you to chat with people who have the program as well. This program easy to use and set up. There is the option of a video call or just an audio call. The program allows you to conference call with up to 25 people. It take a few minutes to download the program but works on PC and mac systems. People can send questions through the chat sections of the program.
mobile phone industry. The strategy has been successful by having signed up about 2 million
AT&T has much strengths and weaknesses and threats as an organization. This SWOT will serve as a tool for identifying alternative strategies for the organization and help define a growth plan. AT&T is a corporate business, their global headquarters is located in Dallas Texas, and the current chief executive officer (CEO) is Randall L. Stephenson. For more than a century they have consistently provided innovative, reliable high quality products and services and excellent customer care. They are recognized as the leading provider of IP-based communications services and businesses. They’re also the top U.S. provider of wireless, high speed internet access, WIFI, local and long distance voice, and directory publishing and advertising services.
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,
The business case presented focuses on insatiable demand amongst a growing population for a service built on dilapidated, poorly maintained infrastructure, against a backdrop of government deregulation in the telecoms sector. As of 1992, there were a mere 78k telephone lines for the 27m people living in 4.7m households (a population set to double over the coming 24 years), with users suffering success rates of just 25%. Demand was forecast to grow to 500k subscribers by 1996. The recent deregulation of the telecoms sector (via the break-up of TPTC into TPC and TTCL) and the formation of a regulator (TCC) had
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
Individuals have some great things to look forward to. Many already communicate over the internet for free (not including ISP cost) in a simple fashion by chat rooms, instant messaging, and email. Some are already using VoIP to replace their current telephone provider due to the lower
The future of VOIP could also be formed by a lot of politics. As we 've seen, the various approaches of the EU and therefore the U.S. haven 't made any form of "neutral" zone during which problems with VOIP readying will be adjudged solely on their technical deserves. In the U.S., the history of linking social and economic policies to a network–centric read of the globe has caused inevitable confusion as services become more and more application–centric. And up to date steps to accommodate public–policy goals to IP–voice services haven’t mainly addressed the massive queries of regulative classification. The implementation of forward–looking, technologically–neutral classifications in the European Union has not made the applying of regulatory discretion immune from political support by dominant carriers.