Given the usage that Zoom has seen in Covid infected world, the question is if Zoom's business model is sustainable. This article[1] from Sameer Singh explains that Zoom's core business model is based on virality of its product and not on the network effect. As compared to other video conferencing tools (Skype, Facetime) that need you to be part of a network to enjoy the features, there is no such limitation on Zoom. Zoom meeting host can share the meeting ID and anyone having the link can join. There is no attempt at forming the network in the first place which could have built a high switching cost for its users. Sameer thus feels that Zoom's business is susceptible to being run over by a similar video conference app with better customer experience or technology.
No comments:
Post a Comment