Porter's Five Forces - Zoom

Angela L.

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Porter's Five Forces - Zoom

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Porter's 5 Forces Zoom, Porter's five forces Zoom, mobile application, messaging, videoconferencing, application, organisation of work in companies, Zoom application, product substitution, Ioros Video Chat, Microsoft Teams, Cisco Webex Meetings, Go To Meeting, Webex, Jitsi Meet

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Abstract

Zoom is a mobile application that saw the light of day in 2011. It is a messaging and videoconferencing application, available on all devices, regardless of the operating system or format (smartphone, tablet, computer). Accessible anywhere in the world, it is mainly used by professionals in the context of their work in companies.

The current health crisis the world is going through has dramatically changed the way people work, and teleworking has become the norm in a large number of companies in order to prevent the pandemic from spreading. Thanks to these changes, Zoom was able to grow, becoming one of the big winners in the health crisis.

Introduction
1. Zoom
2. Market Data
3. Porter's 5 forces
Porter's 5 forces for Zoom
1. The Threat of New Entrants
2. The Threat of Product Substitution
3. The Bargaining Power of Clients
4. The Bargaining Power of Suppliers
5. Intra-sector Competition
6. Synthesis
Conclusion and strategic recommendations

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Extract

[...] Porter's 5 forces for Zoom A. The threat of new entrants In the case of the Zoom application, the threat from new entrants remains high due to several criteria, the first of which is the relative novelty of the application. Certainly, the company is successful, but it remains fragile, especially with the upsurge in a booming market. Indeed, as we said in the introduction, the new working conditions of a large number of employees in companies have led to the increased practice of teleworking, and this makes the market for videoconferencing applications more dynamic than ever. [...]

[...] Hackers are very interested in this, as well, and it is important for the application to significantly reduce long-term security breaches. Some hi-tech sites openly attack the application of these security vulnerabilities, and this can, of course, be detrimental to the business in the long run, and competitors can exploit these vulnerabilities to develop their own system. Confidentiality is also an issue with corporate directories. Some users have indeed found their contact details on other sites, which is, of course, not acceptable. The first recommendation is, therefore, to restore a sufficient level of security for all participants and client companies. [...]

[...] All of these features remain popular with many businesses, and sometimes they are higher than what the competition can offer. If a service is more comprehensive than that offered by competitors, then the bargaining power is further diminished. D. The Bargaining Power of Suppliers The question here is whether providers can impose their terms for the service to work and, if so, then their bargaining power is particularly high. In the case of an application like Zoom, who are the main suppliers? Or at least who are the ones who contribute to the proper functioning of the application? [...]

[...] The first is convenience and the second is functionality and all that such a service can bring to the group. With such a large number of competitors, this threat is particularly high for Zoom since the market is growing. F. Synthesis Threat Type Threat Intensity New Entrants High Substitute products High Bargaining power of clients Moderate Bargaining power of suppliers Moderate Intra-sector competition High III. Conclusion and strategic recommendations Porter's Five Forces Analysis of the Zoom app shows us currently very lucrative business with an increasing customer base year over year. [...]

[...] That of substitute products gives all the services that can replace the one in question. The more there are, the greater the threat, much like the competition. The bargaining power of suppliers and customers makes it possible to realize the decision-making power of so-called external actors, whether they are partners or customers, who are, of course, essential for the proper functioning of the application. In this document, we will, therefore, study these five Porter's forces in the specific case of the Zoom application. [...]

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