ZOOM: MARKETING best practices

Taino Naiboa

tainonaiboa@uvic.ca

MGB 516 International Marketing

Zoom History
Zoom is a renowned video conferencing platform that has revolutionized the way people connect
and collaborate. The company traces its origins back to 2011, when it was founded by CEO Eric Yuan, a
former Cisco executive and entrepreneur, and developed as Zoom Video Communications, Incorporation
in San Jose, California. This marked the start of a transformative journey in the world of communication
technology and video conferencing.
Eric Yuan founded Zoom with the vision of creating a seamless and user-friendly video
conferencing solution. He recognized the need for a more efficient and accessible way for individuals and
businesses to conduct virtual meetings. The platform's development was fueled by Yuan's determination
to improve upon the limitations of existing video conferencing systems. Eric Yuan utilized his experience
as former Vice President of WebEx, an American firm that creates and markets web conferencing,
calling, and contact center solutions (Webex, 2023), to create Zoom. During his time at WebEx, Yuan
collaborated with individuals and businesses who faced many challenges concerning their video
conferencing systems, including connectivity issues, audio and visual latency, and an overall subpar user
experience. Motivated by constructive criticism and a determination to improve upon the shortcomings of
WebEx's web conferencing services, he set out to establish his own company, ultimately reshaping the
landscape of online communication and filling in a much-needed gap in video conferencing services.
Yuan launched Zoom 1.0 to the public in March of 2013. Zoom experienced remarkable growth
for the remainder of the year and by June, the platform had attracted over 1.2 million participants who
engaged in over 400,000 meetings held in around 2,500 cities worldwide (Shah, 2023). In April 2019,
Zoom Video Communications, Inc. made its debut on the stock market, and its shares experienced an
astounding surge of 72% on its inaugural day of trading. This gave the company an initial $16 billion
market valuation (Segall, 2020). The pandemic created intense demand for web-video conferencing
services and further spurred Zoom’s growth due to the rise of remote work and schooling. As of October
2023, the net worth of Zoom Video Communications sits above $18 billion (Macrotrends, n.d.)
The international success of Zoom’s marketing has propelled it into the realm of popular culture,
making it not only a household name but also a versatile verb and noun. The phrase "Let's Zoom" is an
example of how the brand has infiltrated everyday language and has become synonymous with the act of
holding a virtual meeting or video conference, much like how "Google" has become synonymous with
searching for information online. This transformation shows Zoom's pivotal role in the digital age. It's a
testament to Zoom's user-friendly nature that people across the globe can readily understand and use this
phrase to suggest a virtual gathering. The use of Zoom as a verb and noun highlights its cultural
significance and its role in reshaping the way we interact, both personally and professionally.
 Eric Yuan and his company had seemingly achieved the impossible. In a saturated market with
little apparent space for newcomers, Zoom revolutionized the web-conferencing landscape,
fundamentally enhancing the user experience.

Market Background and Context

Before the emergence of Zoom, the video conferencing market was dominated by established
players like Cisco and Microsoft.
In August 2003, Skype was introduced by a trio of talented Estonian software engineers (Lomas,
2013). Initially, it began as a text messenger, but its evolution took an interesting turn when eBay
acquired Skype in 2005 (Clark, 2005). Eventually, Skype found its new home with Microsoft in 2011,
expanding its functions to include video communication (Microsoft News Center, 2011).
Meanwhile, WhatsApp, founded by two former Yahoo employees in 2009 (Metz, 2014), emerged
as an instant messaging sensation. The company did not introduce video chat capabilities until 2016,
which was two years after Facebook acquired the platform (Isaac & Rusli, 2014). This strategic move
added an exciting dimension to WhatsApp's functionality and user experience.
Video conferencing truly took off with the advent of the iPhone 4 and, subsequently, the
introduction of FaceTime in 2010 (Patrizio, 2021). Since, advancements in technology have significantly
enhanced the video and audio quality of video conferencing, elevating the overall experience for users.
These enhancements have been further complemented by the rise of cloud-based solutions, which not
only make video conferencing more accessible to a broader audience but also offer the scalability
required by varying business sizes and needs. Additionally, the integration of these conferencing solutions
with mobile devices ensures that participants can connect from virtually anywhere, providing flexibility
and convenience. Furthermore, the integration of collaborative tools and features into these platforms has
revolutionized the way meetings are conducted, fostering an environment of enhanced productivity and
engagement during video conferences.
When Zoom made its debut, the video conferencing market faced challenges stifling its potential.
Many existing platforms came with complicated interfaces that became an obstacle for the average user,
often necessitating intensive training or technical expertise to navigate (Soper, 2017). This became an
obstacle for businesses and individuals seeking an uncomplicated communication tool. In terms of
pricing, many video conferencing tools have substantial costs, making them unattainable for some
businesses and startups (Delaney, 2020). Such financial constraints meant smaller establishments
frequently had to settle for less. Moreover, many platforms were plagued with capacity limitations and
suffered glitchy video transmissions or dropped connections, especially during high-traffic periods or
sizable group interactions (Haranas, 2018). This inconsistent reliability further dampened confidence in
video conferencing utilities. Amidst this backdrop, Zoom surfaced, promising and delivering an intuitive
user interface, budget-friendly options, and unwavering capacity, addressing many of the challenges users
confronted with rival platforms (Konrad, 2020).

Product Strategy
Zoom's product strategy is defined by three crucial elements: Market and Needs, Key Features
and Differentiation, and Business Goals. These components work to shape the company's approach to
providing video conferencing solutions that have propelled Zoom into a household name in the modern
digital landscape.
Zoom's market encompasses a broad spectrum of sectors, both public and private, where there
is a demand for efficient and effective video communication. This has allowed Zoom to be versatile in
catering to diverse customer needs. Some examples of institutions that utilize Zoom to attend to their
customer's needs are religious, educational, and medical institutions. For example, hospitals rely on Zoom
for telehealth consultations, allowing doctors to remotely connect with patients. Religious institutions
have employed Zoom to maintain their communities through virtual worship services. In the education
sector, Zoom has played an instrumental role in enabling remote learning and facilitating collaboration
among educators and students. Zoom's ability to adapt to the specific requirements of these different
markets has been a key factor in its success.
Moreover, Zoom's product strategy revolves around offering key features that enhance the user
experience. Zoom is the first cloud-based video platform that contains hassle-free connections built to
scale (Paxton, 2023). Some key features include high-definition video and audio quality, ease of use,
screen sharing, and the ability to host large-scale virtual events. What sets Zoom apart is its commitment
to constant innovation. The company is constantly innovating and has since introduced features like
breakout rooms, virtual backgrounds, and integrations with popular productivity tools, further enhancing
its appeal across various markets. Its focus on security and privacy features has been crucial in gaining
the trust of users and differentiating itself from competitors. Zoom's user-friendly interface and cross-
platform compatibility have also contributed to its popularity.
Zoom's business goal is simple: to make online meetings better than in-person meetings. The
company’s business goals align with its commitment to serving a wide array of markets and maintaining
product quality. The company aims to expand its customer base, increase revenue, and foster brand
loyalty. Achieving these goals involves staying ahead in terms of technology and security, providing
reliable customer support, and establishing partnerships. Zoom has also set its sights on becoming a
global leader in video communication technology, which drives its international expansion efforts and
localization of the platform.
 Zoom's product strategy is built upon a clear understanding of its market and the diverse needs
within that market. By offering key features and differentiating itself from competitors, Zoom has been
able to cater to a wide range of customers, including hospitals, religious institutions, nonprofits, and
educational organizations. The company's focus on delivering high-quality, secure, and innovative
solutions while aligning with its business goals has propelled it to the forefront of the video
communication industry, making it an essential tool for countless users across the globe.

Pricing Strategy
Zoom’s innovative pricing strategy has played a crucial role in its rapid adaptation and growth.
Firstly, Eric Yuan, the founder of Zoom, devised a strategic plan to divert WebEx's clientele
towards Zoom. Zoom employs a "freemium" model, offering a free version with a base set of features and
limiting the length of group meetings to 40 minutes and up to 100 participants. Yuan believed that once
users experienced Zoom's superior capabilities, individuals and businesses would recognize its
advantages over WebEx and other platforms and would be willing to pay for a switch (CNN, 2020). This
approach has been instrumental in introducing a broad user base to Zoom's capabilities and pulling users
away from its competitors (Miller, 2020).
Moreover, beyond the free version, Zoom offers several paid tiers with incremental features and
benefits. These tiers cater to different needs, ranging from small teams to large enterprises (Heath, 2020).
By providing this tiered structure, Zoom can cater to a diverse set of users, from individual freelancers to
multinational corporations. The Zoom Pro tier is ideal for small teams, offering extended meeting
durations of up to 30 hours and boasting features like user management, admin controls, reporting, and 1
GB of cloud recording per license. For small to medium-sized businesses, Zoom Business is a perfect fit.
It accommodates a minimum of 10 hosts and enhances the Pro offerings with company branding, custom
emails, managed domains, phone support, single sign-on capabilities, and the addition of Zoom's
transcription service. Larger corporations might find Zoom Enterprise more fitting, as it requires a
substantial host minimum and rewards users with unlimited cloud storage, executive business reviews,
and lucrative discounts on Zoom Rooms. The Zoom United Business package seamlessly integrates
Zoom's Meetings, Phone, and Chat services, tailoring its features to businesses with a specified minimum
license requirement, and generously providing unlimited cloud storage. Zoom Rooms, on the other hand,
transforms conventional conference spaces into collaborative hubs, albeit at an extra fee and a
prerequisite host subscription. For hosting larger virtual events, Zoom Video Webinars are the go-to,
allowing different attendee levels ranging from 100 to a staggering 10,000 participants. Lastly, the Zoom
Phone tier presents a cloud-based phone system suitable for businesses, encompassing features like call
recording, voicemail, and the essentials of a traditional PBX system (C. Cawley, 2023). With this
comprehensive suite of offerings, Zoom ensures it has something valuable for everyone, from small teams
to global enterprises. By providing this tiered structure, Zoom can cater to a diverse set of users, from
individual freelancers to multinational corporations.
In terms of revenue dynamics, a significant 62% of Zoom’s earnings hail from corporations
boasting over 10 employees. Revenue contributions for companies with 10 or fewer employees rose from
20% to 38% by the end of 2020. This spike is attributed to a higher individual uptake of paid services. In
the last quarter, customers spending over $100,000 made up 18% of the total revenue, a decline from the
33% seen at the end of the previous year (Molla, 2020).
Notably, Zoom has made concerted efforts to support the education sector by providing special
pricing or even complimentary services. During the COVID-19 pandemic, when schools shifted to remote
learning, Zoom lifted the 40-minute limit for more than 100,000 K-12 schools around the world
(Matsakis, 2020). This strategic move ensures that administrators, teachers, parents, and students alike
can benefit from a comprehensive suite of features tailored to enhance the virtual learning experience.
Users can now conduct unlimited meetings with up to 100 participants, enriched with HD audio and video
capabilities. The platform facilitates interactive teaching and learning methods by incorporating features
like screen sharing, whiteboarding, and annotations. Furthermore, to ensure effective group discussions
and focused group work, Zoom offers in-meeting chat functionality and breakout rooms (M. Walsh, n.d.).
Through these features, Zoom is positioning itself as a valuable tool in the modern educational landscape.
Zoom demonstrated a strategic move to not only support education but also to position itself as a crucial
and reliable tool for remote learning. This action combines corporate social responsibility during the
pandemic with a strategic approach to market penetration and branding. By providing these services
either at special pricing or for free, Zoom both supports an essential sector in a time of need and fosters
goodwill and positive brand association. In the long run, such strategies can lead to increased adoption,
customer loyalty, and potential revenue growth from other sectors or services.
Zoom also offers an array of integrations and add-ons, such as webinar capabilities or Zoom
Rooms, at different price points. This allows businesses to customize their Zoom experience depending
on their unique needs (ZDNet Staff, 2020). Zoom's integrative nature and adaptability have been core
components of its appeal to businesses of varying sizes and functionalities. According to Zoom, the
platform supports integrations with a multitude of third-party applications, such as Microsoft Teams,
Google Calendar, Slack, and Salesforce. This versatility ensures that organizations can integrate Zoom
seamlessly into their existing workflow without overhauling their established systems (Zoom, 2020).
Zoom's integrative nature and adaptability have been core components of its appeal to businesses of
varying sizes and functionalities. Furthermore, Zoom's webinar capabilities, named "Zoom Video
Webinars," provide a platform for businesses to host larger events, ranging from panels to global
conferences. It is noted that this feature offers various interactive functionalities like Q&A, virtual hand-
raising, and polling, catering to enterprises that require more than just basic meeting setups (Dignan,
2021). "Zoom Rooms," another one of Zoom's product offerings, is designed to transform any space into
a video-enabled collaboration room, be it huddle spaces, conference rooms, or executive offices. The
unique selling proposition of Zoom Rooms is its touch-enhanced conferencing system, which negates the
need for traditional remote controls. A review by TechCrunch highlighted that the ease of setting up and
managing Zoom Rooms, combined with its compatibility with hardware from other vendors, makes it an
attractive option for businesses looking to upgrade their conferencing systems (Miller, 2020). Zoom's
strategy of offering integrations and add-ons at varying price points, has solidified its position in the video
conferencing market. By allowing businesses to tailor the platform based on their distinct requirements,
Zoom propels itself as the go-to solution for many individuals and businesses.

Success During the Pandemic

On Monday, March 23, 2020, during the start of the COVID-19 pandemic, global downloads for
Zoom reached a peak of 2.13 million, as per data from Apptopia. This surge is noteworthy, especially
when considering that just two months earlier, the app saw a modest daily download count of just under
56,000 globally (Moolchandani, 2021). Zoom ended up being the most downloaded app of that year,
besting popular apps like Instagram and Facebook.
Zoom's meteoric rise is first rooted in its Initial Public Offering (IPO) in 2019. Upon going
public, Zoom captured the keen interest of both the tech sector and the venture capital community.
However, the company reached unprecedented growth amid the pandemic. The company’s revenue
increased by around 367% during the pandemic and transformed Yuan into a billionaire (Paxton, 2023).
The onset of the COVID-19 pandemic marked a transformative era characterized by a sweeping
transition to remote operations. Conventional face-to-face interactions across diverse sectors, including
education, religious institutions, healthcare, and government, adapted to digital platforms. Schools shifted
to online classes, congregations gathered for virtual church services, medical consultations were
conducted over video calls, and governmental decisions were enacted in virtual spaces. It wasn't just a
few sectors; the transformation was ubiquitous. Data suggests a drastic shift in the workforce dynamics,
with an estimated 70% of workers in the United States transitioning to remote roles during the pandemic's
peak (Owl Labs, 2020). This surge in remote work culture presented a golden opportunity for video
conferencing platforms, with Zoom emerging as a frontrunner. In 2020, video conferencing saw a 50%
increase in utilization compared to the pre-pandemic era, highlighting the crucial role these platforms
played in maintaining communication, productivity, and societal functions during these unprecedented
times (Owl Labs, 2020).
 Zoom has secured a successful position in the video communication industry during the pandemic
by offering features that distinguish it from its competitors and cater to a broad spectrum of users. The
company employed an ingenious "freemium" model, attracting users with free offerings and enticing
them to premium services due to the platform's superior capabilities. Notably, during the COVID-19
pandemic, Zoom showed its commitment to education by lifting time constraints for K-12 schools
worldwide, balancing corporate responsibility with strategic market penetration. Zoom's tiered pricing
structure appeals to everyone from individual freelancers to large corporations, addressing their specific
needs. Furthermore, Zoom offers a variety of integrations and add-ons, such as webinars and Zoom
Rooms, allowing businesses to customize based on their unique needs, further establishing its dominance
and adaptability in the video conferencing market.

Failures of Zoom
The meteoric rise of Zoom during the pandemic was not without its challenges and criticisms. As
the platform scaled rapidly to accommodate the increasing demand, it encountered some complications.
Researchers pinpointed multiple security and privacy breaches, some of which allowed hackers potential
access to a computer's webcam or microphone. Potential vulnerabilities in Zoom’s macOS installer could
have allowed hackers remote control and access, posing considerable security threats. Additionally, the
company came under scrutiny for misleadingly informing users that their meetings were fully encrypted
when they were not. These included claims of misleading encryption practices and undue data sharing
with platforms like Facebook and LinkedIn. Several lawsuits came to the fore, alleging that Zoom misled
its users regarding its encryption protocols and illicitly shared user data with third-party entities. Notably,
prominent competitors in the video conferencing realm like Facebook, Google, and Microsoft imposed
restrictions on their employees' use of Zoom, flagging security concerns (Dixit, 2020). Another alarming
issue was the discovery of Zoom usernames and passwords available for purchase on the dark web
(Singer & Perlroth, 2020; Somers, 2020). This tarnished their image further when it came to light that
Zoom had acquiesced to the Chinese government's demands and subsequently shut down the accounts of
activists based in China. Furthermore, the company faced scrutiny for routing its traffic through data
centers located in China and its commercial ties to the country, raising geopolitical and national security
concerns (Chen, 2022).
The term “Zoombombing” became emblematic of the platform's security lapses, where
unauthorized users could intrude into private meetings, sometimes broadcasting inappropriate or harmful
content, ranging from hate speech and explicit material to violent threats. In response to the phenomenon
of Zoombombing, the Boston branch of the Federal Bureau of Investigation issued a public advisory
warning about it (Nathoo, 2020). To combat Zoombombing, Zoom released an official blog post,
outlining best practices for users to prevent Zoom bombing (Zoom, 2020). Despite this, disruptions
persisted, prompting both users and shareholders to initiate an online petition (D. Johnson, 2020) and
contemplate a class action (L. T. Johnson, 2020).
The tide began to turn after the Federal Bureau of Investigation (FBI) declared Zoombombing a
cybercrime on March 30, urging victims to report such incidents to the authorities (Setera, 2020). The
company has been very proactive in addressing these concerns. To enhance security against the rising
threat of Zoombombing, Zoom stressed the adaptation of multiple precautionary measures. Users are
advised to opt for a unique meeting ID rather than the default Personal Meeting ID (PMI), ensuring each
meeting is distinct and harder for intruders to access. For an added layer of protection, every Zoom
meeting should be password-protected, so even if the ID is shared, unwanted guests can't join without the
designated password. The platform's Waiting Room feature is particularly valuable, as it lets the host vet
and manually admit attendees, providing granular control over participation. During a meeting, the host
should limit screen-sharing capabilities to themselves, effectively neutralizing a common tactic employed
by Zoom bombers. Furthermore, once all legitimate participants have joined, the meeting can be locked to
prevent any additional entries. For heightened security, the video and audio features for attendees can be
disabled, ensuring that disruptive intruders cannot project unwanted content. And, in the rare event that an
unwanted guest slips through these defenses, the host has the authority to swiftly remove them or place
them on hold, preserving the meeting's integrity (Panda Security, 2021).
In addressing its encryption challenges, Zoom strategically acquired Keybase, a firm with years
of experience crafting encryption solutions, like secure file-sharing and collaboration tools. Amidst
growing security concerns, this acquisition was a pivotal move for Zoom. The integration of Keybase's
expertise bolstered Zoom's security infrastructure. CEO Eric Yuan, in a statement regarding the
acquisition, highlighted that the decision to bring Keybase on board was driven by the company's
commitment to offering enhanced security, a priority that has become increasingly vital for enterprises
relying on remote work tools amidst the pandemic (Slashdot, 2020)
Two years after its successful public debut, Zoom found itself contending with increased
competition from leading tech giants. Companies like Microsoft, Cisco, and Google significantly ramped
up their video communication platforms, presenting robust challenges to Zoom's market dominance. For
instance, Microsoft introduced enhanced features to Teams, making it a formidable adversary in the video
conferencing sphere. Teams, with its integrated video conferencing tool, became an even more attractive
option as it was provided as a complimentary feature to businesses already using Microsoft's Office suite
(Microsoft Corporation, 2020). In another strategic move, Slack, a workplace communication tool,
incorporated a video functionality (Slack Technologies, Inc., 2020). This addition to Slack's arsenal meant
that Zoom's distinctiveness in the market was further challenged, as more and more platforms began
offering similar capabilities (Dignan, 2020).

Lessons from the Zoom Success Story

The story of Zoom’s success serves as an example for emerging entrepreneurs and established
businesses alike. Its meteoric rise during the COVID-19 pandemic and its ability to hold in a competitive
landscape offer invaluable lessons.
Zoom’s trajectory serves as a prime example for seizing market opportunities. The creation of
Zoom was the outcome of recognizing a yawning gap in the video conferencing domain and forming its
niche within that space. This is a lesson to identify gaps and transform them into opportunities. Zoom
recognized an audience was looking for efficient video web conferencing. Their journey reflects the
importance of businesses identifying voids or inefficiencies in the market landscape. These gaps could be
golden opportunities waiting to be transformed into tangible solutions. Zoom understood that there was a
budding demand for an efficient and hassle-free video conferencing tool. The takeaway from their
journey is to identify consumer pain points, and inefficiencies, and then innovate and capitalize on these.

Another lesson in this case study is to be adaptable. As they scaled and faced numerous security concerns,
they avoided remaining static. They were agile for example: acquiring Keybase to bolster their encryption
infrastructure and swiftly introducing features to counteract the menace of Zoombombing. Their pivot in
the face of adversity wasn't just reactive; it showcased a proactive mindset. Being adaptable ensures that
companies can not only navigate the obstacles of the corporate world but also evolve and thrive in them.
Moreover, the Zoom case study is a lesson in maintaining quality. Even during its unparalleled growth,
Zoom remained committed to consistent quality and unique features that enhanced user experience and
retained user trust and loyalty. The lesson is that even in the face of rapid expansion, maintaining the
quality of the service is important to running a successful business.
Another essential learning from Zoom's evolution is the essence of adaptability. As the company
scaled, it faced challenges such as security issues. The company showcased remarkable agility when
dealing with obstacles like Zoombombing and encryption issues. For example, their acquisition of
Keybase was a strategic move to strengthen their encryption backbone. The company also rolled out
features to combat the unforeseen challenge of Zoombombing. Their agile reactions highlighted their
forward-thinking approach as the company molded these challenges into growth opportunities.

Furthermore, Zoom’s journey offers a lesson in maintaining quality. Even amidst unprecedented
growth, the company remained committed to providing top-notch quality, embedding unique features that
enhance user experience. It's a reminder that exponential growth should never compromise the quality of
the business and its product. Maintaining quality is important in fostering trust, loyalty, and business
longevity in the marketplace.
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