Listening to eBay's investor conference call last night which took place to discuss eBay's acquisition of Skype ... ... and following along with the eBay's and they're calling the Power of 3: (Click to see a larger image.) What this diagram illustrates to me is a simple addition to the eBay/PayPal business model:
- On eBay, sellers go where the buyers are, and vice-versa.
- With PayPal, more sellers (and not only eBay sellers) offer payment options by that means, and more buyers use that option.
- Integrating Skype into the eBay/PayPal mix gives buyers and sellers the means to quickly and easily get in touch with each other if they want to, and for free if they make their calls entirely via the internet no matter where each of them is. Talk about facilitating global commerce!
- Each part of the mix feeds the other, enhancing the richness of each element and helping to bolster and grow the whole eBay offering. So that's my concise business takeaway from this deal. Of course, it's far more complex than that. Questions such as why did eBay buy Skype at all - could they not have simply entered into some kind of service agreement with Skype? Or why did they spend so much - many seem to think it's a very expensive acquisition. There have been plenty of instant analyses during the past 24 hours, both by mainstream media and interested bloggers, that address such questions and provide many different answers. Three such analyses I've read today, and which I easily understand, are eBay Opens a Whole New Channel (Business Week Online), and Microsoft Teleo, Gizmo, I wonder what customer/brand loyalty will really mean. If the foundation's solid, communicating the 'Power of 3' now has center stage. NevilleHobson.com blog which focuses on business communication and technology.
Neville is currentlly the VP of New Marketing at NevilleHobson.com
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