Skype SWOT Analysis, Competitors & USP

SWOT analysis of Skype analyses the brand by its strengths, weaknesses, opportunities & threats. In Skype SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Skype to benchmark its business & performance as compared to the competitors. Skype is one of the leading brands in the IT & Technology sector.

The article below lists the Skype SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Skype SWOT Analysis:

SWOT Analysis of Skype

For Skype, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Skype Strengths

The strengths of Skype looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Skype :

1. Skype’s text, voice and video make it simple to share experiences with the people

2. Skype offer clear and high quality calling services including multiple channel video calls

3. High awareness of the brand as it is a top of the mind product

4. Skype is present almost everywhere with almost 40 language support

5. It can leverage the strengths of its parent company Microsoft

6. Skype has a large customer base with more than 600 Million users

7. It is a market leader in Voice over Internet Protocol service (VoIP)

8. High revenue and strong backing of parent company

9. Skype has been used effectively for international calling having a strong business share

Skype Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Skype SWOT Analysis:

1. Intense competition means limited market share growth for Skype

2. Many similar apps gives people more choices & limited brand loyalty

Skype Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Skype SWOT Analysis:

1. Rapid technological development can be tapped by Skype as a potential area

2. It has an opportunity to expand to new services globally

3. Increasing internet penetration and number of smartphone users

Skype Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Skype are as mentioned:

1. Voice Over Internet Protocol is restricted in some countries

2. Intense Competition from other similar apps & social media platforms can affect Skype's business

3. Quality & bandwidth is often not same in all the countries

4. Product substitution can lead to decline in users

Skype Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 9 competitors of Skype:

1. Viber

2. WeChat

3. Line

4. Whatsapp

5. Telegram

6. Facebook

7. Instagram

8. Snapchat

9. Twitter

Hence this concludes the Skype SWOT analysis.

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About Skype

Skype Overview
Parent Company	Microsoft
Category	Application
Sector	IT & Technology
Tagline/ Slogan	The whole world can talk for free
USP	Skype offers high quality Voice over Internet Protocol (VoIP) service
Skype STP
Segmentation	Customers who need Voice over Internet Protocol (VoIP) application (Relatively younger segment)
Target Market	All Smartphone Users
Positioning	Skype keeps the world talking. Call, message and share whatever you want for free

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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