General Environment
Political Trends
The United States has a stable political climate which has helped Zoom to have a smooth functioning experience.
Economic Trends
The United States has been one of the largest economies with a GDP over $16.760 trillion which is a positive factor for Zoom to expand their business.
Social Trends
The United States has been the third most popular country in terms of population where individuals are technically advanced and frequent users of the virtual platforms.
Demographic Trends
The majority of the population are technically advanced who prefer Zoom for carrying out their corporate meetings.
Technological and Environmental Trends
The rate of change in the technological field has been very fast in the United States. The major challenges are being faced by China, South Korea, and India.
Five Forces Industry Environment
Threat of New Entrants
Zoom has to face moderate challenges because of the new applications coming up in the market due to the impact of the Covid-19 pandemic.
Supplier Bargaining Power
Bargaining power of the suppliers is high because they have the power to switch to alternative applications at any point in time.
Internal Competition (Rivalry)
The internal competition is very high from competitors like Microsoft teams, WebEx, Skype, and several other local applications.
Threat of Substitutes
Zoom has to face a high threat from the similar types of applications that have been operating in the market.
Customer Bargaining Power
Customer bargaining is comparatively low because of the similar types of applications that are operating in the industry.
Opportunities and Threats
Opportunities
Due to the impact of the Covid-19 pandemic, almost most of the companies and educational institutions have switched to the virtual platform for conducting their meetings and classes (Antamoshkina and Zinina 2019). Thus, it is a vital opportunity for the company to enhance its application with modern technology and expand its market share gradually.
Threats
The major threat that the company has to face is the intense level of competition from the substitutes (Shtal et al. 2018). This is because several new companies have also started bringing up new applications in the market with the effect of the pandemic.
References
Antamoshkina, O.I. and Zinina, O.V., 2019, May. A methodology for assessing the prospects of modifying business strategy of an enterprise in the external environment. In IOP Conference Series: Materials Science and Engineering (Vol. 537, No. 4, p. 042023). IOP Publishing.
Shtal, T.V., Buriak, M., Ukubassova, G., Amirbekuly, Y., Toiboldinova, Z. and Tlegen, T., 2018. Methods of analysis of the external environment of business activities.
