BMDE Group Project

Group 2

Anubhuti Mishra PGP/25/136

Riya Parikh PGP/25/161

Rahul Arora PGP/25/165

Shivam Pandey PGP/25/174

Shubhiksha Thamodharan PGP/25/177

Report Submission Guidelines

Times New Roman Size 12(body)

Max page limit-20 pages

Evaluation Criteria
Component A-20%
Component B-20%
Component C-25%
Component D-30%
Report (Formatting and adherence to guidelines)-5%
Project Weightage: 20% of the final grade

Schedule-
7th EOD - A and B done
8th C And D
9th ppt
A. Industry and firm selection-

a. Select an industry and a focal firm for your analysis

Industry Description:

The industry in focus is the Telecommunications industry. The telecom sector continues to be at
the epicenter for growth, innovation, and disruption for virtually any industry. Mobile devices
and related broadband connectivity continue to be more and more embedded in the fabric of
society today and they are key in driving the momentum around some key trends such as video
streaming, Internet of Things (IoT), and mobile payments. With hundreds of players in the
market, competitors rely heavily on price; success rests largely on brand name strength and
investment in efficient billing systems. The corporate market remains the industry's favourite.
Big corporate customers are concerned mostly about the quality and reliability of their telephone
calls and data delivery while being less price-sensitive than residential customers. Multinationals
spend heavily on telecom infrastructure and premium services like high-security private
networks and videoconferencing. Every day, we see new improvements in the
telecommunication field. The telecommunication sector has the most growth prospects for the
future, given that we are already in the digitized world. Its growth is linked to the core pillar of
the digital age- The Internet. In the last decade, it has become the largest segment of the market,
eclipsing all other sectors. According to 2019 data from Statista, the Telecom Analytics market
was valued at USD 4.12 billion in 2020 and is expected to reach USD 22.52 billion by 2026, at a
CAGR of 32.75% over the forecast period 2021 - 2026.
Company Description:

Zoom is the focal firm of the report, which comes under the Telecommunication Industry group.
Zoom is a global telecommunication corporation based in California that specializes in video
telephony and online chat services through a cloud-based peer-to-peer software platform and is
used for teleconferencing, telecommuting, distance education, and social relations.In November
2012, the company signed Stanford University as its first customer. Company products include
meetings, chat, phone, Developer platform APIs & SDKs, Zoom for Home, Zoom Events &
Video Webinars, OnZoom, Zoom App Marketplace and Zoom Rooms. The service was launched
in January 2013 after the company raised $6 million. Zoom launched version 1.0 of the program
allowing the maximum number of participants per conference to be 25. By the end of its first
month, Zoom had 400,000 users and by May 2013 it had 1 million users. Google is regarded as a
leader and powerful video conferencing platform in the world. Zoom is considered as one of the
top five Telecommunication companies alongside Google meet, Cisco WebEx, Skype, and
Microsoft Teams. It is one big business that dominates the internet environment, and as a result
of this, Zoom was recognized for innovation, long-term potential as part of Fortune 2021 Future
50. The company offered its services free to K–12 schools in many countries during the
pandemic. By February 2020, Zoom had gained 2.22 million users in 2020 – more users than it
amassed in the entirety of 2019. On one day in March 2020, the Zoom app was downloaded 2.13
million times. Daily meeting participants rose from about 10 million in December 2019 to more
than 300 million daily meeting participants in April 2020.

The product is chosen under Zoom:

The product of Zoom, under focus, is the Zoom Meetings, which is a cloud-based simplified
video conferencing and messaging across any device to build stronger relationships, supercharge
collaboration, and create an engaging meeting experience with HD video and audio for up to
1,000 participants. Use of the platform is free for video conferences of up to 100 participants at
once, with a 40-minute time limit if there are more than two participants. For longer or larger
conferences with more features, paid subscriptions are available, costing $15–20 per month. It
has over 12.92 million monthly active users, making it the most widely used video conferencing
platform. The following pie chart depicts the global market share of video conferencing
platforms.
b. Give a description of the chosen industry and how it is evolving

The global video conferencing industry size is around USD 6 billion. The global impact of
COVID-19 has been unprecedented and staggering, with video conferencing experiencing a
positive demand shock across all regions amid the pandemic. The market is expected to grow
from USD 6.28 billion in 2021 to USD 12.99 billion in 2028 with a CAGR of 10.9%.

1. Spatial audio
The video conferencing applications available in the market today do not have the quality
to simulate real-life audio. Spatial audio is the technology that recreates the moods and
atmosphere of real-life interactions. The trend to include spatial audio is picking up pace
with major players in the industry trying to include it in their platforms.

2. Browser-based video conferencing - WebRTC Solutions

Internet users expect dynamic interaction with each other on the web resources that are
simultaneously accessed by a large number of users at the same time. WebRTC
technology is an open-source project supported by all major tech players that helps users
with a peer to peer voice and video conferencing within web pages. However, video
conferencing companies are yet to make their foothold in this domain. Many complex
applications in gaming, education and entertainment are also aiming to leverage this
technology.

3. Video interaction for customer support

 Many customers in the banking and retail sector indicated their preference for video chat
features for their online shopping and online banking experience. The video chat feature
for customer support will likely be a future trend for the industry and the companies in
the sector are looking forward to changing their operating style as per the dynamically
changing business environment.

c. What is the product that your chosen firm is selling? Give a description of the
firm and the issues it is facing with regards to digitization.

Zoom meeting services allow hosts to arrange and start meetings, as well as invite participants to
join them for the purpose of collaborating via voice, video, and screen sharing. Chat capabilities
enable one-on-one or group discussion outside of the session.

Eric Yuan, a former corporate vice president for Cisco Webex, founded Zoom. He left Cisco in
April 2011 with a team of 40 engineers to launch a new startup, Saasbee, Inc. Because many
individuals believed the video telephony business was already saturated, the company had
difficulty getting investors. WebEx founder Subrah Iyar, former Cisco SVP and General Counsel
Dan Scheinman, and venture capitalists Matt Ocko, TSVC, and Bill Tai invested $3 million in
the company in June 2011.

Issues with regards to digitization -

● Zoom Fatigue - With the increasing usage of video conferencing applications like
Zoom, the users have complained of fatigue associated with excessive usage of such
apps. The increased screen time and longer meeting durations, has affected the well
being of many users.

● Low connectivity or no connectivity - A major problem associated with using Zoom is

that in case of low connectivity or no connectivity, the interaction quality is severely
hampered.

● Tech knowledge/literacy - In a country like India where tech literacy is very low in the
rural areas, where the majority of the population resides, Zoom faces a significant
challenge in introducing potential customers with their revolutionary technology.

Digital matrix:

Zoom is a company that began in the digital space to challenge the industry's conventional
offerings. The company is thought to be the beginning of market disruptions of offline workplace
and education. They are committed to developing business models that aim to provide high
value to customers through the use of digital technologies. Beyond post-Covid market
constraints, Zoom uses a digital transformation to constantly develop its business models.
Zoom’s process of combining conventional and modern offerings and making them available to
consumers. Experiments during covid have been carried out, and the winning concept of
forming groups has been developed into a business model to bring conventional business
practices into the digital world. During this process, new business models were created to deal
with the disruptions. Here we see a shift from video conferencing to introducing other products
like healthcare within and across ecosystems which leads to organizational change.

For these reasons, Zoom Meetings is in the phase of Collision at the core and positioned as a
Tech Entrepreneur, which is shown in the digital matrix as below:

B. Competitor analysis -

a. Identify a major competitor for this firm in the industry (preferably choose a
competitor firm with a strong digital focus). -

It was only a matter of time before the tech giants came for the newest market boss, video
conferencing company Zoom, which has boomed in usage during the coronavirus crisis.
Google levelled its gaze at Zoom by making its own video chat tool, Google Meet, free for
anyone which was previously available to businesses who were customers of the company’s G
Suite products, allowing one host and up to 100 participants on each call.

The meet had also 100 million daily users and was adding about 3 million new users each day,
Given the massive user base and existing platform, this is a smart strategic move — although
Zoom has built a formidable moat and has become synonymous with video chats across the
consumer and enterprise landscape. Google has two other video chat apps — Hangouts, the
once-popular chat app for individuals that the company has started phasing out. It also has Duo,
a video calling app made primarily for phones and tablets.

Hoping to avoid so-called “Zoombombing,” Meet requires people to be logged in with a Google
account to join or start a call and allows hosts to monitor and remove people in calls. Google
said Meet data will not be used for advertising, a common privacy concern for the company that
makes money in large part by letting advertisers target specific ads at users.
b. Analyze the competitor (How is the competitor’s digital strategy disrupting the
market/affecting the chosen firm’s business)

Google meet

● Unlike Zoom, which requires a desktop app or browser plugin, Google Meet allows
meeting hosts and participants to administer and join meetings from any web browser by
simply visiting www.google.com.
● Zoom is heavily Criticized for its privacy and security mechanisms
● Robust security safeguards are in place at Google Meet. Attendees who wish to remain
anonymous are not permitted to attend the meeting. All conference registrants must have
a Google account, and also access to the Google cloud platform (GCP) Boost the security
of google meet by utilizing private networks and Google's built-in safeguards.
● When Zoom's sales skyrocketed a phenomenon emerged also termed "Zoom-bombing,"
some nations, including Canada, banned the company. It was also discovered that Zoom
was selling data to Facebook. To its credit, Zoom took substantial steps and established
several security precautions, including offering E2EE to everyone.
● Despite having a market share of more than 50%, both zoom and google experienced
similar growth rate from 2020 to 2021, with 22.3 percent and 20.2 percent, respectively.
● Google's project Starline, a new super realistic 3D video calling technology Using
photorealistic three-dimensional images with volume and depth will give the experience
like one person is sitting right in front of the other will be released soon and in this
segment, Google is ahead of other competitors as its more than 100 employees are using
it for test process
● Google may burn a lot of cash to add more AI-powered features to Google Meet, such as
data savers, and low-light adjusting tools, to improve user experience. This will be simple
for Google because of its diverse market and huge financial capability
● Zoom lacks in marketing its products and polishing its features but in the case of
googling it markets and positions its products to the right customers using its big data
● Zoom’s business model is also easy to replicable which also makes it vulnerable to
google meet which is backed by tech giant google
 ● In future google meet can adopt slack like a model for team chatting and workforce
collaborations and it would be easy for google because of its beforehand presence of
G-suite in the market.

c. How is the chosen firm responding to the competition?

Zoom conducted market research in 10 Countries with more than 7000 participants to
understand customer sentiments and which type of services they want from zoom with this
understanding they designed several features and also launched Zoomtopia 2021 and invited
celebrities, Entrepreneurs, Businessman to share their views and expertise
Some upcoming feature which zoom is developing to respond emerging Competition

● ZOOM Video Engagement Center (VEC): VEC will provide a platform to

customers to engage and share their expertise in a virtual environment Zoom
VEC will provide customers with the same cloud-first scalability and trustworthy
video architecture that Zoom has been known for.
● Zoom and Oculus Team up-Zoom will collaborate with Horizon Workrooms to
use Zoom to connect the actual and virtual worlds. When this launches next year,
the idea is to allow customers to access their Zoom Whiteboard and Zoom
Meetings from within the virtual Workrooms environment.
● Zoom Smart Room Gallery-Zoom is dedicated to empowering today's
workforce. For this they are building usage cases of Zoom Rooms Smart Gallery
for meeting spaces of all sorts to create a more inclusive hybrid, remote, and
colocated work experience by producing individual video feeds of in-room
participants, so they can be viewed clearly and equally by distant employees.
● Zoom Continuous Collaboration: With deeper integrations throughout the
Zoom platform and third parties, it will be easier to communicate across
technologies. Users would benefit from the option to send files, recordings, and
discussions from Zoom Meetings to Zoom Chat for quick document reference
and collaboration, as well as connectivity with file sharing solutions - all without
leaving the Zoom client.
● Zoom Cares: Zoom using CSR and cause marketing to become ethically and
socially responsible Video Conferencing platform Zoom's social impact arm
announced a $2 million grant to a group of eight worldwide NGOs working to
improve mental health among native, LGBTQ, and young people of color who
 have been disproportionately affected by COVID-19 and systematic racism. As
part of its interactive grantmaking strategy, Zoom put together a team of seven
global experts to vote on NGOs and the distribution of money jointly.

i. Students are recommended to interview some relevant persons from

the chosen firm for insights
In the latest interview CFO of Zoom, Kelly Steckelberg, said that the company is transitioning to
become a unified collaboration platform. The company wishes to achieve that goal through
three pillars. First is unified communication, the second is hybrid work, and the third is
workflows. Zoom is also trying to increase customer spending on its products, which has
potential for the company. Zoom is also working on integrating with various other platforms
which also includes its competitors like Microsoft Teams, Asana, ServiceNow, Dropbox etc.

ii. Students are recommended to refer to multiple secondary sources of

information(like company website, press releases, news reports,
industry reports, research articles)

C. Recommendations for the existing business model-

a. How would you recommend the chosen firm to change its business model to
adapt/thrive in the competitive environment?

BMC- current
Key Partners Key Activities Value Customer Customer
Propositions Relationship Segments
Individual Users Platform Development
and maintenance Video conferencing Ratings Enterprises of All
Business and with professional size
Enterprises Sales and Support features FAQ Section
Educational Institutes
Investors Easy to use By providing
self-help resources Worldwide Individual
Calendar Apps High performing Internet Users
solution
Healthcare Providers
Available for
Windows, Linux, Anyone who seeks
Mac, ios, blackberry video conferencing
and Android solution

Government
Key Resources Channels

Data centres Website

Engineering Team Mobile Apps

Sales Staff

Customer service staff

User Base

Proprietary video compression codec

Cost Structure Revenue Stream

Employees salaries Subscription Fees

Data Centers

Marketing

Platform Development and Maintenance

Changes in Business model

b. Consider any 1 technology that the firm is currently not using. How can your
chosen firm incorporate this technology into its business model? Justify - rahul

AI/ speech recognition - transcript voice to text

What is this technology?

This technology uses speech recognition software to recognise and translate the spoken
language into real-time transcript/text using computational linguistics.

How will it be useful for Zoom?

General:
As Zoom connects users across borders and continents, and these live transcription and
translation features will create endless opportunities by bridging the communications gap across
language barriers as well.

Education:
Can help kids with writing issues, Easy for the students to take notes. Can help students with
Learning disabilities, including dyslexia and dysgraphia

Healthcare:
Clinical documentation: It will help medical professionals to quickly and efficiently record clinical
conversations into electronic health record systems for analysis. It helps improve efficiency by
providing immediate access to information and inputting data.

Corporates:
Immediate record of MOM. The chances of miscommunication can be decreased.

USP of the technology:

● Enhance audio and video content: It will improve the accuracy of audio and video data
conversion in real-time
● Save time: It saves time by delivering real-time accurate transcripts
● Streamline the customer experience: The customer experience will be transformed
through accessibility, seamlessness and ease
How can our firm incorporate this technology in our business model?

Our firm plans to use artificial intelligence and machine learning on a cloud computing platform
to recognise the voice-based speech recognition patterns and convert them into text when the
users are engaged in a call. The algorithms and software would be on a cloud-based platform,
thereby eliminating the need for additional computing power on the host device.

Calendar Availability in zoom

Currently Zoom does not have a feature, which shows the calendar availability of another
person before blocking a time slot for the meeting. Zoom can try to incorporate this feature in
their application, which will enable smooth collaboration, reducing the time spent on deciding a
mutual time for the meeting.

c. Given the current position of the chosen firm in the digital matrix, what kind
of organizational change will you recommend?

Shift to Reinvention at the root

● Zoom should scan emerging patterns of capability co-creation to move at Reinvention at
the root stage where 3 players work together .It Co-existed since 2011 with other digital
giants by sharpening its value-to-cost advantage and replicating the models of its
alliances but after 2019 it morphed its model and now it should integrate horizontally to
cover the business gap left by industry incumbents and digital giants
● Zoom should look at the problems relevant to their industry and where they the want to
be positioned in the future design thinking can be a good approach to think from both
customer and organizational perspective also by taking this step it would be easier for
zoom to move upper ladder of this stage
Shift to Digital Giants
● Zoom has the product, core competencies, and business model to scale based on their
winning formula. However, as they accelerate their well-oiled machine with this proven
recipe, they need to juggle that deliberate approach with an emergent strategy to handle
unexpected factors. In March 2020, The Intercept highlighted that Zoom’s end-to-end
encryption claim was misleading which created a firestorm in the media
● Many more emergent issues will arise which require rapid shifts between their deliberate
and emergent strategies. Strengthening and evolving Zoom's strategic development
process will be critical.
● With Zoom’s laser focus on consumers, they can recognize their product needed to
integrate with other platforms for the JTBD and improve customer experience.

Alliances and Acquisitions

● Zoom should look the future players in the respective industry to form alliances and it
should also Acquire digital innovators who are disrupting the industry with powerful
technological tools.This will make zoom powerful leader in the market
D. Coming up with a new business model -

a. You are now planning to start a firm in this industry. Given the competition
from your chosen firm and other major competitors, how will you develop a
business model?

We will be starting a video conferencing and virtual workspace platform. We will be entering a
very saturated market thus, we need to be a disruption in this sector. This will benefit us by
attracting customers to our platform. Our next stage will be updating the product and services we
are providing in the first stage. After we have successfully expanded ourselves we focus on
creating an ecosystem for video conferencing. We have identified the following customer
segments and services we will be providing them:
● The first customer segments will be Individual users. They form a large part of the
company's customer segments. They will be provided with a free period of 2 months to
introduce them to all the features. This will also help us to get customer feedback on our
features and update this feature before venturing into new segments.
● Businesses will be another important segment of our business. They are a major segment
who will contribute to our revenues.
● The next segment will be providing telehealthcare facilities. We will start with providing
big hospital chains that need inter-branch consultants without the need for actual
travelling.
● Banks are increasingly shifting their operations online. Also, neo banks are on the rise.
We will provide them with solutions that will help them to interact with their customers
in a virtual space. This will help them to develop trust and loyalty from their customers
and will save customers the hassle of visiting the branch.

Tech Entrepreneurs Collison at the core:

Video conferencing is a very statured market where there are many giant players. To establish in
this industry we will have to come up with technological disruption and take on the competition
head-on. Another leverage we can use at this stage will be price. We will have to come up with a
pricing model which is feasible and offers features that are not available in the existing options.
Key Partners Key Activities
Value Propositions Customer Customer
Relationship Segments
Individual Product Providing video
Users Development conferencing FAQ Section All the Business
solutions & virtual
Business and Platform workspace By providing Worldwide
Enterprises maintenance solutions to self-help Individual
individuals and resources Internet Users
Students & Sales &
business which is
Tutors Marketing Customer Educational
compatible with
Support Institutes
Investors Customer Windows, Android,
Support Mac, IOS
Calendar Apps
Administration It is easy to use for
all the users.
Research and
Development High-performance

Key Resources Channels

Data centres Website

Product Development Team Mobile

Application
Analytics Team

Sales & Marketing Team

Research and Development Team

Customer Support

User Base

IT Infrastructure
 Cost Structure Revenue Stream

● Employees salaries Subscription Model

● Data Centers
● Sales and Marketing
● Platform Development and
Maintenance

Industry incumbent experimenting at the edge:

After the company becomes an established platform for video conferencing we will focus on
developing new features and improving existing platforms. The company can experiment with
all the far-fetched ideas like 3- hologram technology and make them part of their business model.
Our well-established customer base will offer us feedback on all these new introductions. This
will also be the stage at which we can venture into new market segments like Telehealthcare or
Banks after careful market research. We will also offer new services like renting hardware
required for businesses.

Key Partners Key Activities Value Customer Customer

Propositions Relationship Segments
Individual Product
Users Development Providing video FAQ Section All the Business
conferencing
Business and Platform solutions & By providing Educational
Enterprises maintenance virtual self-help Institutes
workspace resources
Tutors & Sales & Marketing Worldwide
solutions to
Students Customer Individual
Customer Support individuals and Support Internet Users
Investors business which is
Administration compatible with Customer Medical
Calendar Apps Windows, Feedback Practitioners
Research and Android, Mac,
Hospitals Development IOS Banks
Banks It is easy to use Government
for all the users.
 Key Resources High Channels
performance
Data centres Website
Dedicated
Product Development Team platform for Mobile
telehealth Application
Analytics Team
services
Sales & Marketing Team

Research and Development Team

User Base

Customer Feedback

IT Infrastructure

Cost Structure Revenue Stream

● Employees salaries ● Subscription Model

● Data Centers ● Hardware rentals
● Sales and Marketing
● Platform Development and
Maintenance

Digital Giants Reinvention at the roots:

At this stage, we are a well-established video conferencing platform and our priority will be
expanding our horizons and solving customer's problems across various domains. Rather than
using the IT infrastructure available in the market for our platform, we will work on developing
our own solutions and expand in these areas. We will also start production of all the Hardware
required. Our goal will be to create an ecosystem for customers of all video conferencing needs.
As we would have developed a huge & loyal customer base, we will leverage by changing our
pricing model to an advertising model.
Key Partners Key Activities Value Propositions Customer Customer
Relationship Segments
Individual Product Providing video
Users Development conferencing FAQ Section All the Business
solutions & virtual
Business and Platform workspace solutions By providing Educational
Enterprises maintenance to individuals and self-help Institutes
business which is resources
Tutors & Sales & Marketing Worldwide
compatible with
Students Customer Individual
Customer Support Windows, Android,
Support Internet Users
Investors Mac, IOS
Administration Customer Medical
Calendar Apps It is easy to use for
Feedback Practitioners
Research & all the users.
Hospitals Development Banks
High-performance
Banks Hardware Government
production Dedicated platform
for telehealth
services
Key Resources Channels
To create an
Data centres ecosystem that will Website
cater to all the video
Product Development Team Mobile
conferencing needs
Application
Analytics Team of the customer.

Sales & Marketing Team

Research and Development Team

Customer Support

User Base

IT Infrastructure

Manufacturing Unit
 Cost Structure Revenue Stream

● Employees salaries ● Subscription Model

● Data Centers ● Hardware Rentals
● Sales and Marketing ● Advertising Model
● Platform Development and
Maintenance
● Research & Development
● Manufacturing Hardware

References:

[1] https://www.fortunebusinessinsights.com/industry-reports/video-conferencing-market-100293

[2] https://www.highfidelity.com/blog/future-of-videoconferencing

[3] https://www.vonage.com/resources/articles/future-video-communication-5-trends-2021/

[4] The Digital Matrix: New Rules for Business Transformation Through Technology, by Venkat
Venkatraman

[5] https://dispatch.m.io/eric-yuan-zoom/

[6]https://seekingalpha.com/article/4493564-zoom-video-communications-inc-zm-presents-morg
an-stanley-2022-technology-media-and-telecom

[7] https://www.forbes.com/advisor/business/software/google-meet-vs-zoom/

[8]https://sada.com/insights/blog/google-meet-vs-zoom-2021-5-reasons-why-meet-is-the-better-e
nterprise-videoconferencing-platform/

[9]https://www.google.com/amp/s/www.businessinsider.com/guides/tech/google-meet-vs-zoom
%3famp
[10]https://www.meetric.app/blog/google-meet-vs-zoom-the-ultimate-guide