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What is Skype’s current strategy and what type of corporate strategy are they employing. A company’s strategy can be described as “management’s action plan for competing successfully and operating profitably, based on an integrated array of considered choices.” Our main text, Crafting and Executing Strategy, goes into further detail by distinguishing between business strategy and corporate strategy. In a one-business company, the plan for competing successfully in only a single industry environment is deemed the business strategy. On the other hand, top executives at a diversified company are required to employ a companywide corporate strategy to help improve “the attractiveness and performance of the company’s overall business lineup and for making a rational whole out of its diversified collection of individual businesses.” It can be said that Skype entered the market as a new entrant at the most opportune moment. Venture capitalists provided Skype with an estimated $18.8 million to fund the company aiming to create a global product, provide a well-needed technological service, and deliver scalability. One of their main success factors was their method of penetrating the market. Skype decided to simplify its website with the goal of functionality and convenience. Furthermore, Skype’s’ advertising and promotion strategy depended on the users to spread the word of the product. This was an important aspect of their strategy as it minimized their operating costs. Skype current strategy involves being a low-lost provider. Their current strategy employs an “accelerated growth plan” for the short term. The following table shows the 3 phases involved:
Table 1: Skype’s Accelerated Growth Plan PHASE | STATUS | STRATEGY | Phase 1 | COMPLETED | Become operational on at least one platform (PC’s), at least one revenue stream (SkypeOut), focus on one market segment

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