Presented ByKumar Priyadarshi 09BM8069Ann Thomas 09BM8025

Communication

Some Numbers If email was a country, its 1.88 billion users would make it the largest in

the world. Bigger than China, bigger than the populations of the USA and European Union combined

294 billion emails are sent each day 13.4 billion: the number of direct marketing dollars that went

into email in the US in 2010 $583 billion: The return from that investment on email marketing

53% of all companies in the world actively block public IM/Chat 45 million licensed users of Lotus Sametime

Reference: IBM Systems Magazine ; Dr.Douglas J. Fiore: School Community RelationsNo figures older than November 2010

The Big Names

How they Run the Business• Automated email scanning system to push highly targeted ads• Fees for >7 GB storage• Gmail Revenues : Gmail had revenue per 1,000 page views of 6

cents in 2005 which increased to about 30 cents in 2009

Google Share Price : $ 574

Ref: www.trefis.com :Analyzing a product’s impact on the company’s share price (20 Mar 2011)

How they Run the Business

• Installable in PCs and over handheld devices such as I-Phone and Nokia N900.

• Skype had around 443 million user accounts, which generated around 620 million in revenue (2009)

• Business Model of Skype– Freemium– Prepaid credit users– Hardware licensing from hardware

vendors such as Nokia– Advertising

• Currently, Microsoft and Yahoo's webmail services are earning revenue by selling premium email accounts and ads.

• $19.99 per year for premium account

• Yahoo! Messenger - collects charges when a call is made from PC to a Phone; advertising

• Windows Live ( Messenger + Hotmail) earns $1/user/year

How they run the Business

• Meebo – Venture Capital Funding

from Sequoia – Advertisements on sharing– Surveys

• Digsby – Installing bundled

applications like toolbars, homepages, Ad-Stallers, Back-ground Processing Apps; free of ads

How they run the Business

• OoVoo – 3 way Video Chat – Video chat with up to six

friends, family or colleagues at once.

– Phone Calls– Desktop Sharing– Video conference

PEST

Business Communication

• For a big enterprise (15000 employees)

Reference: Forrester Research Report Should Your Email Live In The Cloud? A Comparative Cost Analysis; 2010http://www.cio.com/article/474672/Gmail_vs._Traditional_E_Mail_Savings_Adding_Up

Costing

Then Why Still E-Mail Hosting?• Safety, Backup, Spam Protection, Authentication, Encryption• Uptime.

– Gmail Outages– Google promises at least 99.9% uptime for its Premium customers– Nevertheless, it’s a leap of faith for an organization

• Reluctance to train employees who have grown used to Outlook

The Future – Going Mobile ?• In 2010, the number of

visitors to email/chat sites– via PCs - declined 6 %– via mobile devices - up 36

%

• By 2013, mobile phones will overtake PCs as the most common Web access device worldwide.– Total number of PCs in use

will reach 1.78 billion– Base of smartphones and

browser-equipped enhanced phones will exceed 1.82 billion

Reference: Gartner Predictions for IT Usage 2010 and Ahead

The India Story

• Business Email Provider (Small Players) net4 HotDak Mail 123 india

• 11 million mobile internet users double since last year

• Total internet access via PCs: 52 million

Web Mail Provider Number of users Growth rate

Gmail 18 Million 23%

Yahoo Mail 16.8 Million 4%

Rediff mail 6.25 Million 4%

Windows Live mail 2.6 Million 10%

Porter Five force AnalysisRivalry among Existing Firms

Market Share of different Webmail Providers

Web Mail Provider Total No. of users Growth Rate

Windows Live Hotmail 364 Million -4%

Yahoo Mail 280 Million 11%

Gmail 193.3 Million 43%

AOL Mail 89 Million 19%

Comparison of different Email Providers

http://en.wikipedia.org/wiki/Comparison_of_webmail_providers

Threat Of New Entrants Facebook

Stickiness: The amount of time users spend on a site. Facebook stickiness quotient is very high

Convergence: All communication on a single page: Chat, Photo and Video Upload, Email, Social Networking

Trendy: Coolness quotient of facebook . The growing facebook universe

Switching Cost to Buyers: Low if Facebook otherwise very high, Low exit barrier, Time to market is very low

Porter Five force Analysis Contd.

Determinants of Buyer Power Total no. Of email users: 1400 Million Switching Cost : Moderate. Internet users uses more than one e-mail address Internet users threat of forward integration i.e. Facebook

Threat of Substitute Products Substitute Products: Social Media (LinkedIn, Facebook, Twitter) Relative quality of substitute: security, Interface, convergence Relative Price of Substitute: Switching cost to Internet users: Business Users: Very High Normal Users: Moderate

Porter Five force Analysis Contd.

Determinants of Supplier Power

Resources: IT infrastructure, easily available at competitive price Programmers: easily available. Need new innovative ideas for good products and being a step ahead in market Suppliers: Mail2world Inc: designs, delivers, and supports a suite of business-class, Web

based e-mail and collaboration services.

Porter Five force Analysis Contd.

Opportunities and ThreatsOpportunities Cloud Adoption Collaboration applications such as email, chat , File Sharing on Cloud Promotional Email Delivery : Mails to priority Inbox Privacy Issues with Social Networks

Threats Outage time Security of email leaks Archive Maintenance Electronic communications of some employees in financial services and medical-related

businesses are required by law to be archived for years, and data handled by those users must be secured.

FutureFuture Trends Voice chat and video chat on Social Networking Digitally signed Voice chat/Video Chat Extensive use of Video chat in Developing Nations

Checkups via Video Chat e.g. Project Hope: Mobile E office in Rural New Mexico Use of remote stethoscope creates a digital audio file that can be saved and even shared with the

patient, so she, too, can hear what the doctor is listening to.

Mobile Video Chat Virtual Reality during chatting

Entry into Webmail

• Increasing sophistication • Small webmail players can no longer compete• A good web-based user-interface is a one time expense, but

still small players can't afford it• Also, big storage quotas require losing money at least

initially, and small players typically don't have deep pockets to take that route.

Kumar PriyadarshiAnn Thomas

Vinod Gupta School of ManagementIIT Kharagpur

Thank You