IRA: Assessing Resource Strengths

Strengths and Weaknesses

1.
A skill, specialized expertise, or competitively important capability: Skype’s innovative product: the ability to communicate with peers by voice using a microphone, video by using a webcam, and instant messaging over the Internet as well as phone calls being placed to recipients on the traditional telephone networks.

Valuable physical assets: Skype is an Internet based company so their ownership of valuable natural-resource deposits, real estate or store locations, and distribution locations are not a factor in their competitive strengths.

Valuable human assets and intellectual capital: Skype had an accelerated growth plan that laid out the company’s strategy for the short term. The plan had three phases, one: (completed) operational on at least one platform (PCs) two: Develop many platforms (PC, mobile, TV, Web), three: Use any mode, any platform, any- where.

Valuable organizational assets: Skype’s revenue data portrayed phenomenal growth in all sectors. For four years there was little reason to doubt the future of the company due to the steady double- digit growth.

2.
A company has a competence in performing an activity when, over time, it gains the experience and know-how to perform an activity consistently well and at an acceptable cost. The ability to communicate with peers by voice using a microphone, video by using a webcam, and instant messaging over the Internet as well as phone calls being placed to recipients on the traditional telephone networks is a service that was unique of it’s time. They were first. Skype’s users are loyal to their brand because they were first. Blind loyalty. This is a similar story to Apple. Users stay loyal to a brand they are familiar and comfortable with.

3.

A core competence is an activity that a company performs quite well and that is also central to its strategy. A distinctive competence is Skype’s VoIP Market Share in 2009. It was 34.4%.

4. Are there any resources that are not connected to a competence?

5. 1. Entering in Market
2. Brand Loyalty
3. First in the industry
4. Price Advantage
5. Innovative

7.

One competitive weaknesses or competitive deficiency in Skype is that it becomes more valuable as more people use it, thereby creating an incentive for existing users to encourage new users to join. However, if other players such as Apple with Face Time grow dominantly into the market, Skype could become obsolete.

SWOT

8.

Skype is and can use other markets as platforms to increase user mobility. Skype is now on Facebook, a key platform that will keep them alive for a significant amount of time.

Threats: The ability to have a steady revenue stream for years to come.