Question 1
The porter’s forces are competitive rivalry, buyers’ and suppliers’ bargaining power, market entrants, and substitutes. The Zoom communication industry is competitive in the market due to its unique services, enabling small and large remote group meetings. During the pandemic period, Zoom has attracted millions of users connecting with other people while at home. However, new market players’ possibility is high because video communication demand has increased, yet Zoom has not coped. The company is based on reliable technology, but problems such as zoom bombing where people sneak in meetings causing distractions, video teleconference hijacking, and privacy threats are evident. As said by one of the CEOs using the platform, the distractions caused alter communication. Before an official meeting, the user was shown pornographic materials, causing the host to shut down the call. The challenges are severe and could attract new players into the market, causing a great competition.
The buyers’ and suppliers’ bargaining power is higher than that of Zoom, meaning if new players enter the market, the switching rate would be increased. The video communication market is growing, mainly due to the pandemic where people work from home. The users, therefore, have many options in search of reliable communication platforms. In case new competitors enter the market and offer better experiences than Zoom, the switching costs shall be low. Currently, there are no substitutes, as said by one of the users who tried using hangouts, but the need was not accomplished. It is a chance for Zoom to resolve the said issues to ensure the demand is handled right. To ensure the switching costs are high, a customer-focused strategy is needed. The technique should prioritize functionality and privacy, as they are the leading complaints from buyers. The customer support department should be quick to answer the users’ inquiries, especially those paying for the services.
Therefore, Zoom Company needs to implement a customer-based strategy, to increase competitiveness and increase the buyers switching costs. Newmarket entrants are expected, making the buyers and suppliers have high bargaining power. Nevertheless, the organization has reliable technology and unique functionality to counter the weaknesses.
Question 2
In the long term, Zoom should monetize its popularity by acquiring other kinds of firms. The company has experienced adjusting problems after the increase of users. The situations mean the company lacks enough structures, finances, labor to meet the market’s demand. Acquiring other relating firms would empower the company to meet a broader market’s needs, earning enough revenue to ensure expansions. Also, the action would guarantee easy access to trained workers to execute the required tasks. The company has employees, but most are not permanently employed due to its size. Merging with other organizations shall increase the labor force improving its competitive benefits in the industry. When enough workers are hired, it becomes easy to solve challenges. For example, the company faces a video teleconference hijacking issue, where distracting individuals prevent smooth meetings. The employees would identify the sources of this challenge and resolve them. Therefore, combining efforts with other firms will help the company counter the weaknesses thus remain competitive.
After the coronavirus period, Zoom should position itself as a social platform. Yuan, the founder’s goal was to help businesses conduct meetings online. Today, companies use the platform to communicate, and the public uses it to connect with friends and family. Making the tool a social platform would increase its competitiveness after the pandemic. It is a reliable strategy because school and life demands have separated friends and family members, forcing them to rely on digital tools. Since Zoom holds many people in a meeting, most users would find it reliable to keep in touch with their loved ones. As a result, enterprises and individuals shall benefit from the platform, ensuring diversity, growth, and development. Using it, a social platform would also improve its popularity, attracting many users, mostly the millennial, as it shall be a new trend. Therefore, Zoom should adjust to offering both formal and informal communication options after the pandemic to retain its position in the market.