Tuesday, March 21

China government says "No" to Skype

Skype is a classic example of a company pursuing a disruptive innovation strategy. Faced with Skype, incumbent telecom providers in the countries in which Skype is present are forced to flee up market in search of more demanding, higher-margin customers.

As with many companies pursuing disruptive innovation strategies, Skype offers a product that competes against non consumption. In the case of China, Skype has the potential to allow millions of people to make extremely cheap calls to other countries. But, as this article describes, it won't be happening just yet.





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