Zoom Analysis by Porter's Five Forces

Abstract

This report aims to analyse a company with reference to Porter's Five Forces and recommend some suggestions to improve its competitive advantage. Porter's Five Forces believe that there are five different forces in an industry that determine the degree and scale of competition, collectively influencing the competitive strategy of existing companies. This report evaluates Zoom Video Communication, Inc. from the aspect of substitutes threat and market competition. To be specific, the substitutes threat and competition among companies will be used to demonstrate how forces have been affecting the Zoom. It is found that Zoom has harvested recognition and dominated the global video conferencing market by Strategic Pillars and Growth strategy to some extent, but there is a threat of substitutes due to its product singularity. Therefore, it is recommended that Zoom should research core technologies to implement safety performance to resist to the threat of substitutes and create a platform ecosystem to reduce the possibility of customer loss and retain customers.