Skype Competition
Now Viewing Skype's competition in: Computer Software Development
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Packaged-Product Companies: -
Does the company have a marketing alliance with a larger company, like IBM or Microsoft? - Small companies may need a larger partner to help market their products.
How does the company determine which markets to target for product development? - Some market segments are growing (wireless Internet products) and some are saturated (basic PC-based products).
Does the company sell through distributors, retailers, original equipment manufacturers (OEMs)? - Larger companies sell their products through a direct sales staff as well as through retail partners; third-party distribution includes wholesale distributors, resellers, and Web sites.
Does the company offer both online and CD versions of its software? - Distributing software over the Internet has become common.
What types of marketing channels does the company use? - Magazine advertising is heavily used by many software companies; Internet advertising is becoming more common.
Does the company use rebates to drive retail sales? - Rebates are common in the retail software market.
Custom-Programming Companies: -
How does the company find new customers? - Examples include trade shows, referrals, advertising, and a sales force.
Does the company have a marketing arrangement with a computer manufacturer? - Some companies specialize in programming for a particular hardware system.
How much of company revenue is repeat business? - Businesses and consumers looking to upgrade existing software are a major revenue source.
How much revenue depends on a single customer? - Small companies often depend on a few large customers.
Competitive Landscape
The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packaged-software companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products.
Business Challenges
CRITICAL ISSUES
Demand Tied to Computer Sales - Demand for specific types of software depends on different end-user trends, but overall demand is heavily influenced by corporate profits, consumer spending, and total computer sales. Software sales grew very rapidly during the 1990s, as consumers and businesses bought PCs and automated many business functions. But growth in demand has been slower in the past decade, as computers are replaced less frequently.
Rapid Technology Innovation - The shelf-life of software products is short and growing shorter every year. Because of the rapid development of new products, software has a shelf-life of only a few years (at most) before it is superseded by superior products. Although software may be in general use for many years, the effective sales period is short.
Industries Where Skype Competes
- Computer Software
- Messaging, Conferencing & Communications Software
- Telecommunications Services
- Fixed-line Voice Services Providers
- Long-distance Carriers
- Fixed-line Voice Services Providers
