Comprehensive SWOT Analysis of Skype

Updated on: Aug 19, 2021

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Skype is a telecommunications program that allows users to communicate over the internet. This could be done by instant messaging, chat, video conferencing, or phone calls. Users of Skype can also send and receive documents over the Internet. Additionally, users can send and receive video and text-based messages via the internet. Skype is now one of Microsoft’s flagship products

In this case study, we will learn more about the SWOT Analysis of Skype and the company. So, let’s get started.


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About Skype

SWOT Analysis of Skype - skype brand logo| IIDE

Niklas Zennström of Sweden and Janus Friis of Denmark founded Skype in 2003. Jaan Tallinn, Estonians  Ahti Heinla, Toivo Annus, and Priit Kasesalu designed the Skype software. 

An early alpha version was built and tested in the spring of 2003, and the first public beta version was released on August 29, 2003.

Skype allows you to communicate with the people who are most important in your life and at work. It’s designed for one-on-one and group conversations, and it works on PC, mobile, Xbox, and Alexa. Skype messaging, as well as HD voice and video calling, will allow you to share your experiences and accomplish tasks with others.

You can use Skype to hold meetings and collaborate with your coworkers, share a story or celebrate a birthday with friends and family, and learn a new skill or hobby from a teacher. Skype is completely free to use, allowing you to send messages and hold audio and video calls with groups of up to 100 people.

You can do more things, in more ways, with more people if you pay a little more; for example, call on phones or send SMS messages. You can pay as you go or subscribe, whichever works best for you.


Now that we’ve covered the fundamentals of the company, let’s take a look at Skype’s S.W.O.T analysis in the section below.


SWOT Analysis of Skype

SWOT Analysis of Skype | IIDE

In comparison to its competitors, a SWOT analysis determines a company’s strengths, weaknesses, opportunities, and threats. It’s a great tool for figuring out where the company excels and where it struggles, coming up with countermeasures, and figuring out how to grow the company. So, we’ll be looking at Skype SWOT analysis in the section below.


1. Strengths of Skype

Strengths are the unique characteristics of a business that give it a competitive advantage in gaining market share, attracting new customers, and increasing profitability. The following are some of Skype strengths:


  • Robust features: 

Skype’s instant messaging platform has a lot to offer to its customers. The software can be used to send text messages, chat, make video calls, and make voice calls. Users can also send and receive video and text messages online, as well as exchange documents.

  • Massive user base: 

Skype currently has over 600 million registered users. Many businesses use Skype as their official communication, video conferencing, and meeting platform.

  • Payment Model:

Skye’s payment model is based on a subscription that allows unlimited usage for a set period of time. Subscriptions are available on a monthly, quarterly, half-yearly, and yearly basis.

  • Service Quality: 

Skype’s popularity is growing primarily as a result of the high quality of its calls and messaging services. Many businesses use Skype to build an ecosystem in which all of their stakeholders can interact on a single platform.

  • Parent company support: 

Skype is backed by Microsoft Technologies, one of the most well-known names in the global information services market.

  • Market Leader:

Skype is the world’s leading provider of VoIP services.


2. Weaknesses of Skype

The weaknesses of a company or brand are elements that must be improved. So, let’s take a look at some of Skype weaknesses:


  • Security Concerns: 

Skype has a diverse user base from all over the world. Many people use Skype for fraudulent transactions and shady businesses. This raises several security concerns for the genuine user who may be a target of such operations.

 – Developing a new brand through pricing: 

Most customers identify Skype with the word “free” because it was originally a free tool. It will be difficult to position the brand now that the payment is involved. 

 – Limits brand loyalty: 

There are now a variety of messaging applications available on the market, and the number of apps has expanded in tandem with the rise of smartphones. As a result, retaining customers will be a challenge for Skype.

 – Reduced entry barriers: 

As Skype was originally a free service, many people signed up for it and used it for a variety of things. The lower entrance hurdles will suddenly become a drawback, as Skype will be unable to detect or regulate such users’ activity.


3. Opportunities for Skype

The term “opportunities” refers to channels in the business’s surroundings on which it can capitalize to boost its profits. Some of the Skype opportunities include:


  • Integration with Microsoft Tool: 

If Skype can be connected with products like Xbox and Outlook, it could open up a whole new set of economic opportunities for Skype.

  • The culture of telecommuting and remote working:

Telecommuting and remote working are popular in the information technology industry, and many companies encourage their staff to work from home offices. This would make them more reliant on systems like Skype for professional communication.

  • Improved scalability: 

As the use of smartphones and other technology has grown, so has the popularity of apps, and distances have shrunk. Companies like Skype will be able to expand their operations as a result of this.

  • The increased popularity of smartphones: 

The growing use of smartphones enhances not only the breadth of operations but also the revenue prospects for a messaging program.


4. Threats to Skype

Threats are environmental factors that can inhibit a company’s expansion. The following are some of Skype’s threats:


  • Competition:

Skype is up against a lot of competition these days, from both established and new competitors. Whatsapp, Viber, Tango, and Talk free are some of its main competitors.

  • Dependence on IT Infrastructure: 

An instant messaging tool’s quality of service is mostly determined by the bandwidth and speed available in that region. These may differ from location to location, causing dissatisfaction.

  • Restrictions: 

The use of VoIP calling is restricted in several countries. Dubai, Qatar, the United Arab Emirates, Korea, and Libya are among them. This has the potential to stifle future growth.

  • Technological advancements: 

Instant messaging technology is developing at an alarming rate, with new versions appearing every day. Keeping up with these developments can be expensive.

  • Issues with Security: 

Instant messaging apps pose major security risks to users, ranging from data theft to cyberbullying. In such platforms, a strong protection element is required which can be pricey.


Now that we’ve gone over Skype’s SWOT Analysis in-depth, let’s wrap up the case study in the section below.


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Skype is a software application that allows people all over the world to communicate with one another. Millions of people and businesses use Skype to make free video and voice one-to-one, send instant messages, group calls, and share files with other Skype users. Skype has transformed the way people communicate in schools, businesses, and society around the world. In today’s rapidly changing technological society, face-to-face communication is not always the norm. 

Skype has enabled educators, business owners, and society to stay in touch with people at all times. It has created new opportunities for people to learn and grow outside of the traditional classroom or business setting.

The SWOT analysis of Skype performed aided in the formulation of key recommendations, such as establishing a new vision and strategy and adhering to current performance indicators.

Please share your thoughts on this case study in the comments section below. Thank you for taking the time to read this, and if you found it interesting, please share it with your friends and family.


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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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