Skype and its impact on Social and Culture Environment - Term Paper Example

Topic: Skype and its impact on Social and Culture Environment Lecturer: Presentation: Introduction Technological advancementin the contemporary society has led to improved communication globally especially through the internet. Skype is one of the emergent Internet Protocol telephones that have had a significant impact in the communication industry. It allows subscribers to make low cost calls to people who are not subscribers. It is also applied by subscribers in video conferencing, live video chat, file transmission and text messaging. The technology can be used in desktop computers, lap tops and mobile phones. This paper focuses on the importance of Skype and how it has impacted on people’s lives. It also evaluates the future of Skype in terms of competition and growth. Importance of Skype and its Impact on People’s Lives Skype has been significant in the lifestyles of the modern society. The most important aspect has been lowering the cost of telephone services. Subscribers of Skype are able to communicate effectively through unlimited phone calls, which is not possible through the common telephone service providers. Moreover, Skype services are accessible globally and therefore every person who has access to the internet can use them (Booth, 16). The current wave of globalization has necessitated effective communication among business people, workers and their families as well as among organizations with mobile workers. Greenhow observes that Skype services have enabled many people working away from home to accomplish work-life balance by means of video conferencing (11). The common mobile telephony only allows voice calls, but workers and their relations appreciate visual communication whereby they are able to see the person whom they are communicating with. Under such circumstances, expatriate workers overseas are able to see their families through video chats. This is significance in the enhancement of satisfaction in employment and avoidance of family breakdown as a result of distance work. Video conferencing has also enhanced business and inter-organizational partnerships by enhancing networking capabilities. The cost of travel and conference rooms has been eliminated by Skype. Moreover, it helps in saving time in the preparations for conferences (Turban et al. 19). In making purchases online, a person is in a position to see the partner whom he/she is communicating with thereby avoiding chances of falling in to the trap of fraudsters. For example, the recent rise in fraudulent transactions involving the sale of used motor vehicles by fake dealers through their short-lived websites could have been avoided if buyers insisted on visual conversations through Skype. This would enable them to request an image of the company premises and the cars before concluding a deal. On the other hand, the fear of fraudster companies in the internet has led to a decline of consumers willing to buy products online (Booth, 13). Skype can be applied by marketers to express their genuineness to potential online customers. Its application offers the opportunity to present a positive image by showing customers their marketing team, management and physical location. In deed, as Kuriyan & Ray (95) assert, Skype is the way to go in future online shopping. In healthcare, Skype has contributed to numerous positive changes with regard to communication between doctors and patients. Doctors, just like other professionals have been using Skype to communicate with families and friends. However, new developments have changed the manner in which they relate with patients. With increased cost of hospitalized healthcare, doctors have established a new strategy of home based care through Skype. Routine medical checks for patients have been facilitated by Skype video calls to patients in the comfort of their homes. Moreover, patients can interact with doctors for clinical consultations and other health related issues without physical presence in the hospital (Turban et al. 19). This has enabled doctors to serve many clients at minimal costs thereby decreasing the cost of healthcare. Video conferencing among healthcare providers as well as among healthcare professionals has also contributed to improved healthcare. Skype has contributed to globalization of the medical profession since consultancy services can be accessed globally by anyone in need of a preferred physician (Greenhow 11). Mentally ill patients that lack medical attention are increasingly accessing healthcare services through Skype. Schizophrenia and dementia patient care has improved despite the increasing healthcare cost (Baxter 65). Through Skype, patients and doctors are required to travel less, thereby saving time hence accelerating the remedial processes and the time spent by patients waiting for the physician to attend to them. One of the major milestones in the follow-up of dementia patients is video call interviews since such patients experience difficulties with telephone conversations. As such, it was not possible to offer healthcare services through phone calls. Skype allows them to interact face to face through video calls whereby they have an opportunity to express their feelings freely. Even though Skype can not replace doctors’ visits to patients, it is being applied for preliminary screening before the visit. This gives allows the doctor to evaluate the extent of the problem and hence provide quicker remedies (Kuriyan & Ray 95). Apart from physicians using Skype to attend to their patients at their homes, people working away from home are in a position to care for their aging relatives especially through moral support. Care for the elderly is a significant aspect of a civilized population. Gaugler et al. (221) observed that the test for civilization in any society is the manner in which it takes care of its frail members. When the aged are offered the necessary attention and care, their life is prolonged and opportunistic ailments in old age are avoided thereby reducing the cost of care as well as the workload of the caregivers (Baxter 63). On the other hand, the satisfaction of working people interacting face to face through video calls with their parents is significant in strengthening family bonds. Growth of Skype According to Turban et al., Skype serves an average of 25 million clients during peak hours (18). Skype operates in a market with little competition as there are few startup competitors such as Oovoo that have not yet gained strong market penetration. The emerging market operates to the advantage of Skype that has already established with a great market share. Nevertheless, there is free entry and exit of the market and hence other follower firms may join the market in the long-run. Product differentiation is one of the significant marketing strategies that have contributed to the growth of Skype. It offers a range of products including; video conferencing, video calls and low cost telephone calls (Kuriyan & Ray 95). The primary demand for Skype products has made many organizations to develop interests especially in terms of business communication and marketing. Skype products are applicable to various market segments. For example, video conferencing is mostly preferred by business people and inter-organizational partnerships that are required to hold regular conferences to discuss business. It saves them cost of travelling and logistics for conferences. Healthcare professionals and workers willing to regularly communicate with their clients and partners find video calls satisfactory to their needs. This is a significant market segment that Skype has capitalized on in its growth agenda (Greenhow 11). Low cost telephone calls between subscribers of Skype and mobile phone users has also attracted many people who find it costly to communicate directly through the normal phone calls offered by the telephone service providers. Skype to Skype and Skype to landline and mobile phone calls accounted for 0.6% of internet traffic in 2010. This contributed for the 51% growth of Skype in 2010, over and above the 8% growth in international telephone calls (Turban et al. 21). Skype has been focusing on inter-organizational partnerships to boost its growth. It has partnered with Verizon to promote mobile health. It has also partnered with the UCSF Children hospital in the U.S to promote interactions between patients and their relations who may not be in a position to make physical visits to the hospital. Skype is being adopted in many other hospitals globally. The partnership between Skype with facebook also presents and opportunity for growth especially as facebook users can now access video chart with their partners Gaugler et al. (219). The acquisition of Luxembourg-based Skype Technologies by eBay presents Skype with a significant growth opportunity to develop its market leadership in VoIP communications which will enhance communications among people globally. The acquisition has also been strengthened by the partnership with PayPal leading to the development of a competitive engine for ecommerce and online communication for consumers and producers globally. Online shopping will be enhanced with Skype facilitating communications between buyers and sellers on eBay, while PayPal focuses on increasing its revenue from online money transfers (Kuriyan & Ray 95). Generally, inter-organizational partnerships that provide mutual relationships are fundamental for the growth potential of Skype. Conclusion This study established that Skype has significantly impacted on the lifestyle of the contemporary society. The transformation is evident in terms of communication whereby the cost of calls have reduced through the application of Skype. People working away from home are able to see their families through video calls. Business people and leaders in organizations are also able to hold video conferences thereby reducing travel costs. Patients are also accessing healthcare services from their doctors through Skype. The inter-organizational partnerships that Skype is engaged in are significant for its growth. Skype has a competitive advantage in the market especially since its products have been differentiated to target various market segments. References Baxter, E. “Caregiver assessment: Learn about the caregiver, distinct from the person with dementia”. Alzheimer’s Care Quarterly, Vol. 1, 3 (2010): 62-70. Booth, C. “Chapter 2: IP Phones, Software VoIP, and Integrated and Mobile VoIP”. Library Technology Reports Vol. 46, 5 (2010): 11–19. Gaugler, J., Kane, R., Kane, R., Clay, T. & Newcomer, R. “Caregiving and institutionalization of cognitively impaired older people: Utilizing dynamic predictors of change”. The Gerontologist, Vol. 43, 2, (2011): 219-229. Greenhow, C.. “Tapping the Wealth of Social Networks for Professional Development”. Learning & Leading with Technology, Vol. 36, 8, (2010): 10?11. Kuriyan, R., & Ray, I. “Information and Communication Technologies for Development: The Bottom of the Pyramid Model in Practice”. The Information Society: an international journal, Vol. 24, 2, (2010): 93?104 Turban, E., Leidner, D., McLean, E., & Wetherbe, J. Information technology for management: Transforming organizations in the digital economy, 6th ed. San Francisco: Wiley. 2011 Read More