Comparion of VoIP Business Model and Growth Strategy Between Established Provider and Late Comer – using SKYPE and TELTEL as Case Study
Date Issued
2008
Date
2008
Author(s)
Hsieh, Yin-Tao
Abstract
First Mover Advantage is an industry common practice and approach. Typically, first mover has a good opportunity to become a market leader and the market bench mark for market followers. In the Internet era, VoIP has a disruptive service nature in the Internet and Telecom Industry. For VoIP, whether a first move can create a market advantage or not, what challenges the first mover will encounter, and how market followers can create competitive advantage through new business model and strategy are all critical issues that require further study. In this research, we select the market first mover, Skype, and the market follower, TelTel to do a case study based on the following theories and research and to develop seven different probabilities.. Chesbrough & Rosenbloom (2002) business operation model and architecture: Based on “technology development’, “operating model”, and “economic value” three perspectives to analyze the 2 companies operating characteristics.. Lieberman & Montgomery (1988) first mover advantage source and applicable strategy: Based on this theory to analyze Skype’s first mover advantages and its applicable competitive strategy.. Based on “Blue Ocean Strategy, Kim & Mauborgne (2005)” and “Will and Vision, Tellis & Golder (2001)” to study the market follower, TelTel, and its competitive advantages and related market strategy in response to the first mover.inally, based on the market first mover and follower strategy analysis in the emerging VoIP industry, we obtain the following 3 conclusions:. Market first mover could maintain its market leadership only through continuous technology research and innovation.. Market follower could create market opportunities to potentially become a market leader if he employs open architecture technology platform as well as open collaboration business model.. To maximize business efficiency, it is important to synergize technology, operating model and competitive business strategies in its planning, development and implementation phases.
Subjects
Fisrt Mover Advantage
Business Model
Disruptive service nature
Open architecture technology platform
Type
thesis
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