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Zoom`s Rise Amidst the COVID-19 Pandemic

Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Case Code: BSTR619
Case Length: 18 Pages
Period: -
Pub Date: 2021
Teaching Note: Available
Price: Rs.500
Organization: Zoom Video Communications, Inc.
Industry: Technology & Communications
Countries: United States
Themes: Growth Strategy, Business Models, COVID-19, Competitive Strategy
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Business Model of Zoom

Zoom followed a freemium business model, wherein it provided free limited services initially to hook users and then turned them into paying subscribers in exchange for upgraded services. Revenue was generated through a premium version with added features to the standard free offering. A host was any user of the video-first communications platform who initiated a Zoom Meeting and invited one or more participants to join that meeting. Hosts who subscribed to a paid Zoom Meeting plan were referred to as “paid hosts.” On the other hand, a customer was a separate and distinct buying entity, and could be a single paid host or an organization of any size that had multiple paid hosts..

Success During the Pandemic

The outbreak of the coronavirus disease, caused by the severe acute respiratory syndrome coronavirus 2 (SARS‑CoV‑2), came to light in December 2019 when a cluster of cases were reported in Wuhan city in Hubei Province, China. The World Health Organization (WHO) named the coronavirus disease COVID-19 and declared it as a pandemic on March 11, 2020. COVID-19, a respiratory illness, spread largely through droplets in the air which were expelled when an infected person coughed or sneezed..

Challenges

Amid its success, Zoom had come under scrutiny over how it handled privacy and security, including its failure to prevent uninvited guests to barge in on sessions. A phenomenon called Zoombombing, wherein virtual intruders interrupted religious ceremonies, remote classes, and other Zoom gatherings by guessing the meeting code, sparked warnings about Zoom’s lax security. For instance, a Holocaust memorial that was held by the Israeli embassy in Germany was attacked and bombarded by intruders with images of Hitler and anti-Semitic slogans. Though the event was suspended temporarily, it was reconvened later. In some cases, pornographic images were displayed..

The Road Ahead

After facing massive criticism about the lack of privacy and security in its platform, Yuan apologized and said that addressing Zoom’s privacy and security issues would be his top priority going forward. He said that the company was taking steps to improve the security of its videoconferencing app..

Exhibits

Exhibit I: Investor Funding at Zoom
Exhibit II: Zoom’s Product Features, Plans and Pricing
Exhibit III: Zoom User Growth
Exhibit IV: Top Apps Worldwide for Q2 2020
Exhibit V: Top Growing Apps Globally*
Exhibit VI: Stock Price Chart of Zoom (December 2019-November 2020)
Exhibit VII: Zoom’s Consolidated Statements of Operations (FY 2017-20)
Exhibit VIII: Zoom’s Quarterly Revenues (Q1 2019 to Q2 2021*)
Exhibit IX: Selected Recognition and Awards for Zoom*
Exhibit X: Top Players in the Global Web Conferencing Market (October 2020)
Exhibit XI: Zoom’s 90-day Program 7 Commitments vis-à-vis Actions

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