Introduction
There are and were different platforms before the pandemic covid-19 which was used for audio and video communication worldwide. The most used platform before covid-19 was the webcam and video calls through different mobile and web based software. So in order to work from home an app or web base services was required to implement this concept work from home. So zoom an online video conferencing app was developed with all the features and scopes which were lacking in the already available apps. Zoom video communication was established in 2011 by the Eric Yuan based in San Jose California. When zoom app fulfill all the requirements of the companies, educational institutions, small and medium scale organizations, then it becomes the most popular and downloaded in the united states of America and worldwide ahead of Tik Tok app.
Organizational Performance
The stock price of the company initially starts its uplift from April 2019, when the stock price and S&P 500 was initially parallel. The stock price at the end of April 2019 was 100 dollars. Initially this uplift in the stock price was remained higher than the market return up to October 2019. After this uplift there was decline in the price of the stock comparatively to S5P 500. But at the start of 2020, the stock price of the zoom incorporation takes off comparatively to S&P 500. During this phase company has register higher stock price. Even at the mid of August the stock price of the zoom incorporation was around 800 dollars which was the most highest comparatively to S&P 500. The stock price of S&P 500 was around 120 dollars.
Organizational Health
Yuan was amongst first 12 employees of the WebEx in 1997. During 2007, WebEx was acquired by the Cisco and Yuan become the voice president of engineering. But due to different differences, Yuan left the company and established his own company called zoom video communication incorporation. the huge jump in revenue and customers was reported in the year 2019 when covid-19 affected the entire world. The success of the company revenue and register customers was due to the investment made by the company in the integrated software and hardware’s. The timely decisions and investment made in development of the web and mobile app has made the most effects on the revenue of the company when covid-19 blocked to entire world.
When distance and business operations are mandatory the zoom has captured the entire market with their innovative and scope of its services in the world. The different zoom products were the most popular in the 2020 according to their own features. These popular products are zoom meeting, zoom webinar, zoom rooms, and zoom phone. These are the products which made the first choice for the people for performing the official duties. Zoom incorporation has the most potential and professional competitors in the market which will capture the market instantly if the zoom will not keep the innovation and quality services.
2X2 Matrix:
The financial health of the company depending upon the timely decisions regarding different factors which will turn organization into sound health otherwise effect adversely. The following table shows the different factors which if move into right direction than health of the organization will be positive otherwise effects negatively.
Goals
As the revenue peek of the company reported during the covid-19 especially in 2020. The stock price of the company was at the highest of its life. The management of company is well aware that the revenue of the company when covid-19 effects get down and normal routine comes to life. But goal of the company is now changed which is shifted to retain the revenue of the company up to a certain level through offering different products along with retention of registered customers and growth of customers. These products would be helpful for the company to attain the goal. The more the product diversification, the more chances of the revenue growth.
Value Proposition
The overall value proposition of the company in the market is quite healthy. Whatever the features company offers to their customers has the quality and durability. As company already competing the giant’s competitors with almost all the features like pricing, quality of services, products, and above all customized based services to their customers. The in time investment in different diversified products has made the company first choice for online meetings purposes.
Core Activities
The core activities of the company basically based on the online services based products and services. Zoom incorporations has got the reputation especially for online meetings in the world during covid-19. The basic objective of the company is based on the activity which is bringing the people face to face through internet equipment’s.
Porters 5 Forces
Threats of new entrance.Every business organization has always threats of new entrance which might minimize the market share of the company. In order to minimize the threats of new entrance into the market, the management of the company should maintain the quality and diversity of the products. Otherwise a new entrance can take their market share through more innovative and having more features in their online product and services.
Bargaining power of buyers.The bargaining power of the customers of the company is higher. As most of the customers of the company are from different organizations which include universities, business organizations public and private educational institutes. On the other hand as market is very competitive this shows that customers have higher buying power. As for buying power of the customer is concerned company does not have any issues.
Bargain power of supplies. The supplier of the company has moderate bargaining power. As there are already giants companies or competitions exist in the market. So in this regards company does not have any issue.
Threat of substitute. A threat of the substitute is the biggest threat to the market share of the company. There are number of substitute existed in the market which are products of the Apple incorporation, Microsoft Incorporation and CISCO. So if company fails even a slightly to fulfill the value proposition than company can lose market share. Zoom video incorporation is sitting on the edge of the competitors as they got a little clue of dissatisfaction of the company then they will jump into to snatch the market share of the company.
Intensity of competitive rivalry (High). The intensity of competitive rivalry is very high in the market. The products offered by the each competitors is very close in offering services. This competitive environment is good for the end user but not the companies itself. This competitiveness does not allow company to reap a higher level of profit from the market. The profit margin of the companies in case of competitive market get down.
Conclusion
Zoom video communication incorporation is working in the highly competitive market. The market share of the company can be lower at any time if the diversity and product quality gets down. The giants of the market are sitting next to the company to capture the share. So overall market share of the company comparatively higher than other products and services offered in the market.
PEEST Analysis
Political The political situation particularly in the America is stable as for the their product and services is concerned. But rivalry with China can cause negative impact on the company services and products.
Economic.As the economy of the country and world has get down due to covid-19. As soon as the economy of the world gets open it can negatively impact on the company revenue. The success of the company is at the moment entirely dependent on the online services particularly online conference call and video call and meetings. So this product has not directly connections with the economy of the country. Though in broader prospective economy is relevant to it.
Environmental: The environment prevailing in the world is very conducive for the company. This environment influence on the demand of the company.
Social.Zoom products has positive social effects, as it works in the best interest of the society. That it the reason on which company got the reputation about work from home without any disturbance on the basis of zoom diversified products.
Technological.The survival of the company entirely dependent upon the technology use by the company. If company does not follow the innovation idea or strategy to use latest technology or introduce latest technology or software’s than company might lose market share as well.
Industry structure: The Zoom incorporation zoom industry is one of the fastest growing industry in the world during the covid-19. The main features of the industry are that it purely related with online services like video call, meetings, conferencing etc. This industry connects the people from different regions. Its customers mostly are business and non-business organizations from all over the world.
Genealogy
Zoom video communication was established in 2011 by the Eric Yuan based in San Jose California. The most used platform before covid-19 was the webcam and video calls through different mobile and web based software. So in order to work from home an app or web base services was required to implement this concept work from home. When zoom app fulfill all the requirements of the companies, educational institutions, small and medium scale organizations, then it becomes the most popular and downloaded in the united states of America and worldwide.
Business model
Zoom technically is a cloud based application which connects individuals as well as different types of business organization like business and non-business oriented to virtually connects with each other to to communicate with each other. The communication took place via audio, chats, or both. The core business revenue is generated from the zoom meetings. Along with this zoom also generate revenue from zoom events, zoom phones, webinar and zoom rooms. From revenue point these are the four sub categories of revenue.
Resource Analysis:
From the resources point of view, company is far behind from the giants of the market. Company required more resources in order to increase product diversity for competing the competitors in the long run. Company required more resources to invest in their core products for continues improvement and innovation.
Resources Gap
The company basically has intangible assets like intellectual capital and rights of usage. The intangible assets basically includespatents, rights and capitalized software.
Management
The management of the company basically motivated to maintain the core products along with bringing more diversification in product line. There are around 2700 employees working in different department.
Organization
The organization of zoom video communication is based on the centralized management system. It has around 2700 employees which are working under the different authorities in the management hierarchy.
Action plan
Short term action plan
In order to strengthen the internal operational operations company should focus on it. Company should use its internal resources up to maximum level for attaining the optimize internal operations.
Long term action plan
The company should need to work for sustaining its revenue when covid-19 effects would be minimum. Though according to analyst at the end of2025, around 25 % employee will work from home. The needs to work on this opportunity and along with needed to work on the products portfolios and diversity. If company fails to bring more diversity in the long run than company will lose market share. The competitors of the company are sitting right after the company waiting for any slight mistake and will take the advantage along with capturing the share. At the moment company has only four categories or products which are generating revenues. Company should develop more categories or products which will maintain and increase the revenue for the company.
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