Everything You Should Know About Skype’s Repositioning Strategy!

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Skype as we know it is no more. Microsoft has launched the all new Skype which is no less than Whatsapp or Facebook Messenger. The previously known for video calling application is now focusing on instant messaging which, according to them, is now front and center. Here’s everything you should know about Skype’s repositioning strategy.

What led to Skype’s repositioning?

Skype, Microsoft’s biggest acquisition once, is the pioneer of internet calling service but has eventually lagged behind in the crowd of instant messaging and other calling applications. Once the only known source of free and economic international calls, Skype became the largest carrier of international phone traffic in 2008 only to see a decline in its market share in future.

There are many reasons which led to the downfall of the brand which include –

The Crowd

Skype, though a pioneer, wasn’t able to maintain its position as other players emerged in the market. Skype positioned itself as a internet calling application which eventually proved out to be a setback as millennials considered it to be a second priority and instant messaging applications like Whatsapp, Snapchat, and Facebook Messenger, which also provided this feature became a new rage.

Previous positioning and rigidity

Skype was among the firsts to offer VOIP and positioned itself as the perfect software to make free calls – on computers. Even though the target group of the brand was 18-34 year olds, the company eventually shifted its focus to corporates.

Millennials had far more choices to choose from when it came to internet calling and Skype did very less in changing its positioning to a regular calling application. The mobile interface was buggy, friends were added through their skype ID and not directly through contacts, and many other features were not provided.


Skype was among the top brands which offered VOIP service on computers. However the developers missed the opportunity to tap the mobile users market. There were many problems in Skype for mobile which weren’t timely taken care of. As a result, Skype was easily left behind and forgotten as soon as an alternative like Whatsapp and Facebook Messenger were available.

These alternatives proved out to be better in many ways –

  • They were focused on instant messaging and included VOIP as its subpart.
  • Internet Calling required less data consumption
  • Tapped more users through better marketing and positioning strategies.
  • Offered many more features like stories (Messenger & Whatsapp), stickers, filters (Snapchat), and custom emoticons (bitmoji on Snapchat).
  • Evolved as a perfect solution for all instant communication needs.

Target Group

Skype targeted the wrong group at the wrong time. The main focus of Skype was business users as they brought in 20%-30% more revenue than usual users. Little did they predict that millennials would prove out to be a better market for them.

Google Duo can be seen positioning itself at a place Skype should have tapped.


However the decision to reposition wasn’t that bad either. Here is what all is in plate with the new version of Skype.

The Next Generation of Skype

Skype as we know it is no more. Microsoft has launched an all new version of Skype. The older versions will not be operated anymore. Even the existing users will have to make new accounts on the new version of the application.

“Because we want everyone to experience the best Skype has to offer, it’s sometimes necessary to retire older versions of Skype, and Skype-enabled devices,” a Microsoft spokesperson said. “Unsupported Skype-enabled devices and platforms may experience problems with calls and chats, lost or dropped calls and instant messages, or could stop working completely.”

new skype's repositioning

With this new version, the company tried to overcome all the limitations of the previous version. They –

  • targeted the millennials, and
  • paid more focus on IM and personal communication.

The company tried to incorporate every feature that is trending today. –

  • Stories have been incorporated as highlights
  • Message reactions have been included, and
  • chatbots have been incorporated in the interface.

The focus has been kept on mobility. In fact, Skype has been launched on mobile first and will be available on desktop later.

Go On, Tell Us What You Think!

Did we miss something?  Come on! Tell us what you think of our article on Skype’s Repositioning Strategy in the comments section.

About Aashish
A marketer, a dreamer, a traveller and a philomath. I prefer stargazing to spending nights in clubs.

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