Problem Based Learning

The Problem: eBay and Skype - diversification or disaster?

Information transfer is the business of the 21st century. The information being transferred could be anything from documents, details of transactions, articles, news and messages. The growth in text messaging has been nothing short of astonishing, matched perhaps only by the development of e-mail as a method of communication that characterises the 21st century. It might only be a matter of time however before many of us are using our computer networks to talk to each other at prices much less than we are currently paying.

Image: Is the telecommunications industry set for revival with the development of new technology? Is this an appropriate strategic move for eBay? Copyright: Dinos forDino

The growth in Voice over Internet Protocol services (VoIP) enables computer users to talk to each other and can also be used to make calls to normal landlines and mobile phones. The potential of the technology has led to some analysts predicting a doubling of the revenue from such services to £8 billion within three years.

Maybe this is the reason why eBay have decided to enter this market. The online auction firm have released figures that suggest that maybe its phenomenal growth is about to begin to slow down and moving into this growth market may be a shrewd move. It has signalled its intentions by making a bid for one of the leading companies in this technology, Skype. The bid for the company is thought to be anywhere between $2 and $3 billion!