Paper on Navigating Business Management: An In-Depth Analysis of Zoom Company's Strategies and Challenges

Paper Type:  Essay
Pages:  7
Wordcount:  1733 Words
Date:  2024-01-14


Business management is one of the essential blocks of the world economy. However, there are different types of businesses. That is the macro and micro environmental businesses. The assignment will discuss different aspects of business management based on the Zoom company.

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Pestle Analysis

A PESTLE analysis diagram

Before a company is built or discovered, certain factors must be considered for the company to be effective. Such factors were analyzed and combined by business specialists and formed an acronym PESTLE. That is Political, Economic, Sociological, Technological, Legal, and Environmental factors. Before the two (LE) Legal and Environmental were added, the model was referred to as PEST (Ball et al., 2020). Pestle analysis can provide vital data, which can help in decision-making on company issues and make the business owner understand the factors that influence a business to perform greatly. Besides, PESTLE also facilitates its competitive edge by understanding both its external and internal environmental factors, making it easy for the company to make quick changes and implement them when necessary (Gray et al., 2020). Like any other company, Zoom also has its risks. The best way a company like Zoom can understand risk management is through carrying out a pestle analysis. One of the risks is a market drop rate, which has been caused by the COVID-19 pandemic. The PESTLE analysis will help the company analyze and understand its risks and manage and understand its position after the COVID-19 pandemic.

An association like Zoom exists on a large scale (macro environment business). The organization is more extensive in business sectors and the economy during which the association has no control apart from responding to it. The association's general climate wherein one has restricted effect impact) monetary conditions. A PESTLE investigation permits Zoom to determine its present situation in these conditions and acknowledge openings and dangers, making it conceivable to enhance and limit their impact on the association (Narayan et al., 2020). PESTLE study will be conceivable to acknowledge long-term patterns concerning the problems and openings that have emerged due to the COVID-19 pandemic and decide on educated choices concerning the corporation's eventual fate. The device helps plan how the corporation enters and continues the new market climate by distinguishing ongoing changes and variations to the outer powers. Some of the event drivers for Zoom are distinguished, and their likely effects on the association are examined.

Key Drivers of Change

For a company to fail in its operations, some circumstances, which did not exist before, must have come up. Therefore, changes to be applied to the company to remain stable are referred to as the drivers of change. Therefore, drivers of change are the forces applied to an organization to change (Gray et al., 2020). Therefore, if the drivers of change are not found and rectified, then the company will fall. The legislation is a good example of a driver of change. If the company's leaders are misusing the company's funds, then the company should change its legislation faster before it gets late. If not, the organization's finances will not be enough to certain and manage the organization leading to closure. Below is the list of key drivers of change.

Political Components

Zoom has arisen because of the go-to stage after the event of COVID-19. The spread of the sickness has constrained governments to execute measures that have welcomed a critical effect on Zoom's profitability (Paikea and Pal, 2020). GDRP, Brexit, and free development boycotts have constrained associations and organizations to satisfy online through Zoom and different stages offering similar administrations. Coping with clients' flood has become one significant danger confronting Zoom and decides if the corporation will succeed and might be supported within the post-COVID-19 period.

Legal Variables

Regardless of Zoom's rising utilization lately, spiking from ten million clients in December to 200 million clients in March, there has been an ascent in investigation instances. Zoom has encountered rising security concerns, including "Zoom bombing," where a noxious client shows upsetting or unequivocal pictures during a Zoom meeting irrespective of being illegal (Moncrieff, 2020). These are security passes that ought to be fixed before any legitimate move is created against the corporation.

Technological Elements

In contrast to cooperation advancements and customary interchanges, Zoom's administrations depend upon the client's web access rate. Zoom encounters difficulties with the expanding transfer speed, and the client limits prerequisites, corrupting the stage's exhibition due to restrictions in the web framework and limited requirements. Because of the client limit and correspondence limit increment, Zoom must build up extra organization limit ventures to ensure adequate information transmission speeds are maintained, guarantee limitless accessibility, and simultaneously apply satisfactory costs (Kshetri, 2020). Zoom must provide a satisfactory ability to support its client base's development to accomplish unwavering quality, execution, and high information bandwidth that's adequate.

Health Components

The rise of the COVID-19 pandemic has had a massive effect on the corporation. Zoom has encountered both positive suggestions thanks to expanded utilization of the appliance prompting more benefits for the corporation and negative effects from workers suffering sickness bringing down efficiency and other prohibitive measures to counter the illness (Son et al., 2020). the corporation couldn't control, or in certain circumstances, have confined command over their server farm offices' activity, which are made defenseless thanks to the measures found to test the spread of the COVID-19 infection.

Economic Elements

The rising joblessness is the primary danger to the monetary area. The pace of occupation development is decaying as more individuals can't secure position openings (Paike and Pal, 2020). The increasing loan fees and swellings set the corporation off about the arrangement of labor flexibly. The pay dispersion is getting lopsided because of the degrees of additional cash increments over the economy. Zoom makes due under a globalized economy that significantly depends on innovative progression; hence, these financial climate headways achieve everyday ascent loss of representatives.

Social Elements

As the overwhelming majority are compelled to remain reception trying to manage the spread of the COVID-19 infection, many have ordered approaches to stay up to their public activity by embracing imaginative methods of staying social through birthday celebrations and random data evenings (Kshetri, 2020). Thanks to the recently embraced social separating standard, significant vibrations, and extreme partition methodology have decidedly been added to Zoom's event through loads of video conferencing administrations. Zoom has assumed a large part in limiting lockdown stress because emotional wellness and self-destruction rates are diminished as individuals discover social substitutes in Zoom.

Relevant alternatives if these Issues Endure

The diligence of those issues implies a dynamic, ever-evolving, worldwide, and relentless business today. It might be important for the corporation to grasp that communication is the path forward as video conferencing seems to be comprehensively private and interesting, suggesting a more prominent comprehension of clients' foundations (Lemov, 2020). Zoom should likewise give some thought to the effectiveness and coordination of its foundation for better procurement of clients. the subsequent choice is to travel to enhancement and profitability to ensure the corporation represses its clients' fulfillment and reception. Zoom should guarantee solid execution from its group by improving inside and door closeness in its work connections. This choice will ensure incredible arrangement and correspondence because the company rules over other industry contenders as they're at the video conferencing period's pinnacle.

Zoom Analysis Using Porter's 5 Forces Model

Profit Maximization and Competitive Forces

A company's attractiveness and profitability can easily be determined using the FIVE PORTER'S FORCES. Five of Porter's Forces is a business tool discovered by the school of business in Havad. Porter Michael was the founder of the Five Forces (Ogunyemi, 2020). Porter argued that most organizations concentrate on the rival's development instead of concentrating on the actions taken to improve the current business environment. Through his studies, Porter came up with five forces that an organization should use to develop a better and more competitive environment. Through Porter, five forces, an organization can easily understand its business environment and act accordingly through strategy adjustments. Therefore, a business organization should concentrate on the rival organizations look beyond the actions taken currently, and act accordingly for a better competitive environment in the future. (Ogunyemi, 2020). The five Porter forces are explained below.

Competitive Rivalry

Zoom faces much competition from other companies such as Google, holograms, VR, and people going back to study their usual physics. Other competitors include Skype Meet Now, Google Video Meeting, and WhatsApp group videos, allowing clients to make video calls without any signs or downloading any software. While Zoom allows a meeting of fewer than three people within two to 40 minutes (for non-premium users), Skype Meet Now allows an invitation of more than, fifty users, with unlimited time to meet on Skype. Besides, call records can also be recorded by the software for future reference. These competitive advantages the companies have over Zoom puts it at a competitive risk. Google Meetings provides a chatting platform while on the video call. It is among the main competitors, allowing over 100 participants to and allowing them to join Google meetings from direct mail invites (Meier et al., 2020). Another competitive feature offered by Google Meetings is the person's allowance to join a meeting using the established dial-in number in a different session. This feature makes the users join their meetings without internet access.

Buyer Power

The competition around the Zoom company is very stiff. Despite the company having more users, its demands reduce with time (Chu et al., 2020). It will be very basic for clients to drive the expense of administrations down. The corporation is at a developing rate due to expanding requests. Yet, this development isn't likely to last longer with request strains because the clients probably won't have a solid devotion to utilizing the merchandise. Zoom is presently amazing because it has numerous clients contrasted with its rivals, yet its capacity reduces as clients decline.

Supplier Power

A company's supply power is determined by its ease of increasing prices (Wieland, 2020). Zoom has been expanding its capacity due to a large number of user demands. The company has collaborated with Amazon Web Services and Microsoft Azure, its main cloud infrastructure suppliers (Wieland, 2020). Due to the COVID-19 pandemic, most organizations prefer their workers to work from home, while Zoom is still employing the most experienced salespeople and well-equipped engineers.

Threat of Substitution

The COVID-19 measure and movement restrictions played an important role in Zoom's popularity. These pauses are a great threat to the company (that is, if everything will go back to normal after the COVID-19 era). For insta...

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Paper on Navigating Business Management: An In-Depth Analysis of Zoom Company's Strategies and Challenges. (2024, Jan 14). Retrieved from

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