Skype Pest Analysis

The external or macro-environmental factors have the potential to enhance or subdue business performance. Although there can be at times, volatility associated with a forecasted assessment of such qualitative factors, a reasonable outlook can be derived in order to support any short-term and perhaps even long-term strategy. The degree to which the political, economic, socio-cultural, and technological factors affected Skype increased over time as a result of public awareness and subsequent acquisition by eBay. As a standalone business prior to the acquisition, Skype had significant global potential, but eBay’s vision, deep pockets and strategy for expansion introduced the leveragability factor that stands to benefit both business models inclusive of other businesses in eBay’s current portfolio.

Because both Skype and eBay have an international outlook, the Political playground yields mixed assumptions contributing to the potential success. Assuming no other ‘disruptive technology’ enters the arena challenging VoIP, variations on the regulatory front seen from country to country will become less significant over time, provided that expansion efforts are realistic. The more liberal regulations providing the greatest opportunities are inherent to developed countries at present and Skype’s presence together with eBay in places like North America has tremendous profit potential. In the case of emerging democracies, a favorable regulatory environment is time dependant, but VoIP’s presence in a significant way is inevitable. The outlook on Skype’s ability to capitalize in such places is a very positive one given the magnitude of eBay’s reach. Countries with more conservative views, where the political is often intertwined with the socio-cultural issues, the possibilities are less optimistic. As noted in the case study, several Middle Eastern countries have denied VoIP traffic into their communications environment. Additionally, 45 countries restrict internet presence...