How the Zoom Business Model Fits the Coronavirus Economy.
Everyone has a shining and a Christmas day. A day that your usefulness will be at the top in ranking and order of importance.
That is how two friends came to prove a fact to each other to demonstrate their individual usefulness. One is a medical doctor while the other one is an electrical engineer.
These two professionals have always argued about who is more important. The doctor's argument is that because he is needed to sustain life so he is more important. The electrician argument is that light is life, and thereforeits absence there is sadness in life.
One day, as these two friends were at home a call came in and it was an emergency situation that the doctor was needed urgently. He rushed to the hospital to rescue that life.That has proven his point already.
To the electrician, there was a certain day,the hospital light developed an electrical problem. No doctor could work if it is not fixed. Then the electrical engineer was called to fix it. That also demonstrates his importance.
At the end of the day, it is time and events that show how important we are. It shows how important a business is and your skill is also.
The Coronavirus has clearly shown to the world the unarguable importance of some digital products, tools and businesses. It has shown how important the video conferencing product called zoom is. It is now solving many workplace market frictions created by the pandemic.
In this article we shall consider how the Zoom business model fits this kind of economy that the market share and user base is rising daily.
What is Zoom Video Conferencing?
The zoom video conferencing is a digital or software tool that helps professionals, individuals and organizations to hold video meetings. It helps to keep work flow going in an organization. It makes it possible for staff of a company to have a meeting similar to an offline meeting but in a video form.
How Business Model fit into the Coronavorus Economy?
According to Eric Yuan, the CEO of Zoom said in a webinar hosted by the zoom team On April 21st to address some security issues with the platform said more than 300 million people used Zoom’s flagship video conferencing app, up from about 200 million on April 1.
In a Feedough article, they stated that Zoom’s shares rose about 5% Wednesday to $150.25 at the close of New York trading. The stock has more than doubled so far this year.
The reason for this growth and successes is simply because of the coronavirus pandemic. The following are how it is suitable for this period.
Remote Work Solution:
Since the Coronavirus pandemic became national and global issues that led many nations to order all companies and organizations to close down except essentials ones, establishments resorted to remote working.
The coronavirus has succeeded in locking people down but it has not locked up entrepreneurs and managers of companies. So, working remotely will ensure that businesses maintain their usual operations. In order to do this they will need some digital tools to keep in touch while working from home. One of such digital tools is zoom.
Social Distancing measure:
Coronavirus can be contracted through the air droplet of human beings. This was why medical experts came up with the measure of social distancing. With social distancing people will stay out of touch physically.
But, professionals, teams and staff need to keep in touch in order to continue work. The way to stay in touch virtually and not physically is through zoom.
The Freemium Marketing Strategy
One of the immeasurable values of the digital business is from the freemium business model that provides very great value to target audience at no cost. Zoom is working on a freemium model, it has a basic plan which is free.
The plan allows users to have access to 48 minutes of video calls for 100 participants while unlimited time for 1 to 1 meetings.
This alone will help organizations with less teams to work remotely and hold meetings at a minimal marginal cost.
The Cost Effectiveness of Paid Zoom Packages:
We have three paid packages which form the subscription revenue model of zoom ; the pro package, the business package and the enterprise package.
The pro package offers 100 participants with 24 hours video calling duration at $14.99. The business package offers 300 participants and other mind blowing features at $19.99. The enterprise package offers 500 participants with other great features at $19.99.
These make this product cost effective compared to the cost of physical meeting for organizations.
That is simply how business works. An economic wave which is caused by factors such as trends, nature etc can shift attention from one product to another and that will be the time for such product or business’ success.
The same is true for professionals. Whatever your dream and skill is, keep working on it for time shall reveal its immense importance one day.
This trend has also skyrocketed Amazon key business metrics as shown in this article.
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