{"id":5306,"date":"2020-09-15T21:07:05","date_gmt":"2020-09-16T01:07:05","guid":{"rendered":"https:\/\/desis.osu.edu\/seniorthesis\/?p=5306"},"modified":"2020-09-15T21:07:07","modified_gmt":"2020-09-16T01:07:07","slug":"why-zoom-is-successful-how-it-makes-money","status":"publish","type":"post","link":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/2020\/09\/15\/why-zoom-is-successful-how-it-makes-money\/","title":{"rendered":"Why Zoom is Successful & How it Makes Money"},"content":{"rendered":"\n

I chose to look into Zoom because of its wild success and growth as a digital communication tool for many businesses and schools during the time of COVID-19. Their focus is quite simple and straightforward, making their product very successful at what it set out to do. This power in simplicity is a common theme, and something that is important for me to take a hint from when moving forward in this project. Especially with the complexity of the problem at hand, it is important to focus in on a single key aspect in order to come up with the most successful solution.<\/em><\/p>\n\n\n\n

—<\/p>\n\n\n\n

Qadri, Muaaz. “Why Zoom is Successful & How it Makes Money.” What is the Business Model of, <\/em>21 June 2020, https:\/\/whatisthebusinessmodelof.com\/business-models\/zoom-business-model\/<\/a>.<\/p>\n\n\n\n

“Eric was serving as the VP of Engineering at Webex when he decided to venture out on his own.\u00a0<\/p>\n\n\n\n

So why did he quit Webex & how did Zoom turn into such a big phenomenon?”<\/p>\n\n\n\n

The Zoom Backstory<\/h2>\n\n\n\n

“With the market alreadt saturated with products like Skype, Google Hangouts & the then market leader Webex, investors were skeptical of putting money into Eric’s new venture”<\/p>\n\n\n\n

“Two years later, in 2013, Zoom launched its first iteration,\u00a0raising a $6 Million Series A<\/a>\u00a0round at the same time.\u00a0<\/p>\n\n\n\n

“A key difference between Zoom and other existing companies, like Skype, was that Zoom was created with a video-first mentality. The existing players had created audio first and then adjusted to video, which led to an increase in costs.”<\/p>\n\n\n\n

“Zoom managed to get traction because it differentiated itself in many different ways from the existing players.<\/p>\n\n\n\n

“Zoom video conferences were easy to set up and compatible with all devices, including desktop and mobile via its Android and iOS apps. Zoom was able to handle a data loss of up to 40%, so it worked with a weak internet connection as well. To top it all off, Zoom had a $9.99 per host plan ($14.99 now), which made it cheaper than its competitors.<\/p>\n\n\n\n

How Does Zoom Make Money<\/h2>\n\n\n\n

“In simple terms, Zoom operates on what is popularly known as the freemium business model, wherein it provides free limited services to hook users & turns them in paying subscribers in exchange for upgraded services.”<\/p>\n","protected":false},"excerpt":{"rendered":"

I chose to look into Zoom because of its wild success and growth as a digital communication tool for many businesses and schools during the time of COVID-19. Their focus is quite simple and straightforward, making their product very successful at what it set out to do. This power in simplicity is a common theme, […]<\/p>\n","protected":false},"author":22,"featured_media":5310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":{"0":"post-5306","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/5306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/comments?post=5306"}],"version-history":[{"count":1,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/5306\/revisions"}],"predecessor-version":[{"id":5311,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/5306\/revisions\/5311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/media\/5310"}],"wp:attachment":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/media?parent=5306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/categories?post=5306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/tags?post=5306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}