Strategic marketing assignment Essay Example | Topics and Well Written Essays - 1500 words

Strategic marketing assignment - Essay Example 1 Skype is the market leader in the international voice over internet protocol (VoIP) telephone market. The software used by Skype allows the customers to use the internet in order to make free calls to other Skype users globally. In the process of doing business along with the internal factors, the external factors, the external environment also have the potential to enhance or subdue the performance of the business. The extent to which the political, economical, social, technological, environmental and legal factors affected the business of Skype has increased generate public awareness and acquisition by eBay. 2 Political Factors Skype defined as VoIP has an international outlook as it’s used by numerous people all over the world. So the political conditions are essential for the success of the Skype. Skype allows people to make free calls over the internet which has a direct advantage to the small business. But Skype has been suffering from many political issues over the ye ars. The governments of some emerging countries have tried to block Skype mainly because the telecom industry started to lose money due to lucrative international calls. China telecom has planned to block the access to Skype as Skype has been accused of security issues. Apart from the countries blocking Skype, based on its technology, assuming that no disruptive technology enter and challenges Skype, variations from different country tends to become less significant. With liberal regulations Skype has the opportunity to extend to developed countries and its presence along with eBay has a great potential for earning revenues and increase profits. In the emerging countries Skype has been facing difficulties but the company has the ability to capitalize in a positive manner along with eBay. Countries such as China where the political factors are often co related with the social and cultural issues, the possibility of Skype is less optimistic. The Middle Eastern Countries have also deni ed the use of Skype in their communication process and it can be said that the implication of the company are not favorable.3 Economical Factors The internet along with the digital civilization has brought about dramatic changes in the economic system as well s in the social structure caused mainly due to communications technologies. The economic condition which governs Skype reveals that a very minimal amount of risk is associated with Skype in the efficient running of its business. The business model of Skype peer to peer model is combined with the ability to leverage the resources of eBay in a cost effective manner in order to ensure competitiveness in pricing strategies.4 Skype is cost effective as it offers free online calls over the internet to people across the globe. Its low cost strategy has led to an increase in the perceived value since the savings associated to individuals are high and significant in the long run. According to sources, Skype has been regarded as one of t he fastest business which has fueled the growth rate for eBay. Skype has currently added about 150000 users per day for its 54million members in about 225 countries. Skype has generated revenue of about $7million in 2004 and achieved $200million in 2006. With Skype’s international existence, and popularity it would eventually help eBay with its international presence