Skype SWOT Analysis
Here is a detailed SWOT analysis of Skype covering strengths, weaknesses, opportunities and threats.
SWOT analysis is a management strategy framework used by businesses like Skype for assessing organization’s Strengths, Weaknesses, Opportunities, and Threats to guide strategic decision-making. Skype is an online application which provides support for voice calls, video calls and text messages over its own platform as well as on other mobile phones using Voice over Internet Protocol. Skype was made live for public in 2003 and was developed by Janus Friis and Niklas Zennstrom. By examining these internal and external factors, Skype can capitalize on advantages, mitigate risks, and chart a more competitive path forward. It was later acquired by Microsoft and now runs as a division of its parent company. Let us start the SWOT Analysis of Skype below.
Skype Strengths
- Skype’s text, voice and video make it simple to share experiences with the people
- Skype offer clear and high quality calling services including multiple channel video calls
- High awareness of the brand as it is a top of the mind product
- Skype is present almost everywhere with almost 40 language support
- It can leverage the strengths of its parent company Microsoft
- Skype has a large customer base with more than 600 Million users
- It is a market leader in Voice over Internet Protocol service (VoIP)
- High revenue and strong backing of parent company
- Skype has been used effectively for international calling having a strong business share
Above are the strengths in the SWOT Analysis of Skype. The strengths of Skype looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Skype Weaknesses
- Intense competition means limited market share growth for Skype
- Many similar apps gives people more choices & limited brand loyalty
These were the weaknesses in the Skype SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Skype Opportunities
- Rapid technological development can be tapped by Skype as a potential area
- It has an opportunity to expand to new services globally
- Increasing internet penetration and number of smartphone users
Above we covered the opportunities in Skype SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Read more about Skype
Skype Threats
- Voice Over Internet Protocol is restricted in some countries
- Intense Competition from other similar apps & social media platforms can affect Skype's business
- Quality & bandwidth is often not same in all the countries
- Product substitution can lead to decline in users
The threats in the SWOT Analysis of Skype are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Skype SWOT analysis.
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About Skype
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Skype Overview | |
|---|---|
| Parent Company |
Microsoft |
| Category |
Application |
| Sector | |
| 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 |
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