Bus599 Mod 1 Case

In: Business and Management

Submitted By kikem12
Words 2550
Pages 11
MBA Integrative Project
BUS599

Module 1

Strategic Review
Skype

FOR Dr. Harry Hascall

From: William E. Lopez-Valentin

Date: Jul 23, 2012

Trident University

Strategic Analysis of Skype

Introduction
This paper will present a strategic analysis of Skype. I will discuss Skype Mission, Vision, Values, Goals / Objectives and strategic business. Skype was founded in Luxembourg in 2003, by Niklas Zennstrom and Janus Friis, creators of Kazaa, software designed to share music and movies. Throughout its history, framed by investment offers and sales of the company, Skype remains a large and prized signature in the world of technology. In 2005, eBay the product auction site through internet bought Skype for 2.6 billion dollars. Before the end of that year, the company introduced one of its flagship services: video calling. In 2006, Skype reached 100 million users worldwide. In the same year, it released version 3.0 of its software for Windows and 2.0 for Mac.

From conception to acquisition
Since in the changing world of technology everything cannot be 'rosy', in 2008 Skype began to have conflicts with eBay. On the one hand, the service implemented to enhance communication between buyers and sellers in the online auction service; was not leaving the desired results. On the other hand, the old system developers sued eBay for licenses used had expired. In 2009, eBay ended up selling 70% of Skype for 2.7 billion dollars to the group Silver Lake Partners. In 2010, the company reported net loss of $6.9 million. However, it is clear that the value of Skype is not measured by their earnings, which do not grow in the same way that its popularity. With over 170 million users, Skype is the most widely used IP telephony and that's one reason not negligible for Microsoft, which gradually hoped to integrate this service to their platforms…...

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