The Zoom Company’s Main Keys to Success

Subject: Company Analysis
Pages: 5
Words: 1491
Reading time:
6 min
Study level: Bachelor

Executive Summary

Zoom has used the pandemic as an effective tool of gaining traction and finding its footing in the field of video communications. The stable foundation provided by almost a decade of development allowed the company to successfully adjust to the needs of the many and provide the necessary services to businesses, educational institutions, and other types of organizations. The user-friendly design, coupled with accessibility features and a smart segmentation of the market, made Zoom a go-to choice for the majority.

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Introduction

The present review will discuss Zoom, a video conference software, and the company responsible for its creation. Zoom Video Communications is a company established in 2012 (When zoom was young: The early years 2020). The organization is primarily situated in the US, working within the field of telecommunication. Zoom Video Communications, hereby referred to as simply Zoom, has managed to see a stable upward curve of popularity. The main product the company works on is the eponymous Zoom Meetings software, designed for online communication between large numbers of people.

Emerging as one of the many competitors on the video conferencing market, Zoom has managed to become almost fully synonymous with the practice, amassing a large user base and considerable profits in the process. There are a number of reasons for its success, with some of them being intentional and others highly coincidental. The present overview will discuss three of the most significant factors in the company’s, and brand’s, growth. The specific points for consideration were chosen in accordance with their perceived influence on the success of the company compared to its competition, as well as notoriety. As a result of this overview, it will become possible to construct a full picture regarding Zoom’s recent success. In addition, it also provides a unique opportunity for analyzing a piece of telecommunication software.

Keys to Success

Ability to Capitalize on Circumstances

The first key to Zoom’s success is most likely the main reason the majority of people across the globe are familiar with the company – the COVID-19 pandemic. While the emergence of the disease and its unprecedented spread has been particularly disastrous for many industries, some companies and organizations have managed to become more successful instead. The dangers of face-to face communication became apparent with the introduction of social distancing, raising the need for remote communication in a variety of fields. Business, education, healthcare, leisure and many other industries turned to video communication technologies for the necessary assistance. The use of video calls as a substitute for face-to-face interaction rose sharply since 2019, paving the road for the success of Zoom. It has been noted that the company saw tremendous growth since the start of the pandemic.

Zoom revenue and usage statistics
(Zoom revenue and usage statistics (2022))

The success of Zoom in the face of its competition in the nearest few years can be attributed to a combination of lucky coincidence and the brand’s stable preceding growth. As noted by CNN Business, Zoom worked in a field that was historically “more hated than loved”, facing an uphill battle of garnering better recognition in a sphere largely considered bothersome (Kelly, 2020). The specific range of options available to Zoom users was preferable for the wide variety of applications the software was used for. Allowing for many participants, the program could be used for educational, personal, professional and even ceremonial purposes. Due to the inherent capability of the Zoom software, it was the first choice for many organizations choosing to involve themselves in the video conferencing field. As noted by research in the field of medicine, the majority of health providers find the benefits of using video conference software to be extensive, especially considering the circumstances of the pandemic (Connolly et al., 2020). In addition, Zoom has effectively adapted to the increased traffic to the platform, solving the problem of an ever-increasing user base. As said in by the representatives of the company in an interview, Zoom is reliant on 17 large data centers around the globe, allowing it to process large influx of customers (Kelly, 2020) more easily. Overall, the organization has managed to root itself in a field that experienced a sudden surge of popularity in the recent years. Using their solid technological base and a robust existing array of functions, Zoom has managed to turn all of the pandemic-induced attention into steady growth.

Wide Accessibility

Another important determinant of Zoom’s success is the software’s design. Among the competition, many aspects of the program’s UI present an advantage, especially considering the active user base and necessities of Zoom. The presentation, visual design, and the range of customization options presented within Zoom exist in a perfect balance of bringing utility and simplicity. As shown by research, subjective values such as the UI’s controllability, simplicity, coupled with factors such as originality have a significant impact on the user experience (Hassenzahl et al., 2000). Therefore, by presenting the user interface in a correct manner, it is possible to find success among a wide audience. In the case of Zoom, a need to be able to fulfil the needs of a varied market existed, which was answered by an especially quick setup process, sufficient functionality, and customization options. Compared to other products on the market, Zoom does not require authentication, making the process of starting a call much quicker. In addition, the program is noted for a large potential number of simultaneous callers and an ability to customize the interface. All of these factors combined ensure that a regular user finds their experience with Zoom to be both satisfactory and easy to come back to.

In addition, it is also notable that Zoom features a significant range of accessibility features for people with special needs. In the case of software that is increasingly used for all parts of life, the capability of providing services to people that may possess vision or hearing impairments is crucial. As noted by the writings on the University of California website, Zoom possesses a significant range of built-in accessibility tools, including the ability to create closed captions (Electronic accessibility). Furthermore, the software possesses a capacity for live captioning, visual accessibility adjustments, and screen reader compatibility (Electronic accessibility). All these features come together in ensuring that more people are able to use Zoom unimpeded.

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Range of Options for Companies and Enthusiasts Alike

The last point toward’s Zoom’s recent success, in my opinion, is its ability to offer different range of services to different types of customers, while also retaining its general free-to-use model. In essence, while the non-commercial use of the software remains free, it is possible for businesses, educators and other organizations to pay for more functionality and an increased capacity to meet work-related needs. This is reflected in the pricing model the company employs, possessing a range of possible annual and monthly plans for its customers (Zoom Pricing). By dividing the functionality of their software and locking a part of the features it provides behind a paywall, Zoom performs market segmentation of its user base. Market segmentation is an important part of marketing, as it allows companies to more effectively cater to different parts of their customer base (Myler, 2016). In the case of zoom, the free model gives company the recognition and traffic associated with most users, while the paid usage plans provide an increase in revenue. In this vein, the choice of offering different payment plans for the program serves as a tool of differentiating between the core audiences of the company and segmenting the market.

Conclusion

Zoom is a recently emerging company in the telecommunications industry. The history of the organization is a tale of both stable growth and unexpected opportunity, combining simple luck with professionalism and a long-standing commitment to improvement. It is important to examine the success of Zoom, as a point of reference for future entrees into the video communication market, as well as other business professionals. The company has managed to use its inherent range of tools, professional insights and a profitable business model to its advantage, growing into a household name and a video conference giant in the span of three years.

There are a number of factors that can be attributed to its success, with the capacity to capitalize on attention, an ergonomic, accessible design and a careful attention to their market demographics being most notable. The pandemic has acted as a launching pad towards popularizing the company, but the effort of becoming accustomed to increased traffic and providing a comfortable user experience was fully on the company itself. The decision of making the UI simple, customizable and user-friendly has assisted the company in retaining its clients and earning new ones with time. In addition, a considerable array of accessibility features helped Zoom to gain an edge over its contemporaries. By combining all of the above advantages during a time where long-distance communication is practically a necessity, Zoom has guaranteed its success in the near future and managed to surpass its competition.

References

Hassenzahl, M., Platz, A., Burmester, M., & Lehner, K. (2000). Hedonic and ergonomic quality aspects determine a software’s appeal. Proceedings of the SIGCHI Conference on Human Factors in Computing Systems – CHI ’00. Web.

Connolly, S. L., Miller, C. J., Lindsay, J. A., & Bauer, M. S. (2020). A systematic review of providers’ attitudes toward telemental health via videoconferencing. Clinical Psychology: Science and Practice, 27(2). Web.

Electronic accessibility. UCOP. (2020). Web.

When zoom was young: The early years. VatorNews. (2020). Web.

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Kelly, S. M. (2020). Zoom’s massive ‘overnight success’ actually took nine years. CNN. Web.

Zoom revenue and usage statistics (2022). Web.

Myler, L. (2016). Market segmentation: Sell more by selling to fewer. Forbes. Web.

Zoom Pricing. Zoom Video Communications. (n.d.). Web.