Basic business strategies for Zoom
The first strategy that I am recommending for Zoom is to form a strategic alliance with Twitter, the massive social media app. A strategic alliance is a contractual partnership because the companies involved do not take an equity position to one another (Pearce & Robinson, 2015). The main idea for this strategy is to give people an alternate way of communication with their followers. Instagram is another popular social media app that has something similar called Instagram Live. Instagram Live has been very popular due to the COVID-19 pandemic that is causing people to not have social gatherings (Burch, 2020). Zoom’s platform on Twitter will be similar to Instagram Live but users will have the option of not making their conversations public. Instagram influencers are using it to connect with thousands of their followers.
A partnership between Twitter and Zoom can potentially increase users for both platforms. These two apps have similar characteristics like them both being free to use and having contacts or followers. The strategy of an alliance is smart for Zoom there is little risk involved and a massive upside. An alliance will also be good for Twitter because it will give its user something else to do on otherwise straight forward app. 93% of Twitter users would not be against are open to other brands or companies getting involved (Omnicoreagency, 2020). This alliance will involve Zoom being accessible through the Twitter app, but with some Twitter qualities throw in.
Objective #1. The objective for this strategy is to improve our profitability, competitive position, and make Zoom a leader in the technological field. The long-term objective is to gain profit from gaining more users by targeting a different group of people than Zoom normally does.
Figure 1. is a graph that has the total number users of Twitter divided into 5 age ranges starting at 13 and going to 50+. This graph shows that a majority of Twitter customers are aged from 25-49. People in this age range make up the working class of America. According usefyi.com (2020), 89% of people are using Zoom for work while 63% are using it to communicate with friends and family. With Zoom partnering with Twitter, it will allow the average worker to use Zoom for other things with groups of friends and not co-workers. Contacting a different age demographic will cause a rise in the number of users and ultimately become more profitable.
Zoom is the number one video-chatting app in the world and buy pairing with the number one social media app will make Zoom a leader in the technological field. This will make Zoom’s competitive position even more solidified as the number one app video-chatting app in the world. By Zoom being accessible through Twitter a platform with so many users will create a platform never seen. Implementing Zoom’s software onto Twitter’s platform is what will be discussed next.
Implementation.Implementation will start with getting Twitter to agree to letting us be a part of their platform. I suggest that Zoom officials point out to Twitter officials that it is a win-win situation for them. If the platform is successful, then Twitter will have more commerce in their app making them more popular. If this new platform is not successful, then all the fault will fall on Zoom and Twitter will not even lose money. For Twitter to allow Zoom to use its platform, I suggest giving Twitter a portion of profits based on percentage of new customers that Zoom receives. Once Twitter has agreed to the terms, developing this new platform comes next.
Development of this new product will start with creating the software to merge Twitter followers in with Zoom technology to create a hub for people to join as they please. There will be separate “rooms” in the hub that individuals can open and can invite people with a simple click of a button. Users who use Zoom primarily for their family and friends, can now simply join a friend with a click of a button and not have to worry about meeting ID’s. It will be as simple as clicking on a link, selecting a follower to chat with, and meeting them in a room. In this hub their will also be fun trivia games and other games that users can play with one another while still being able to speak with them. This hub will be called the ZoomHub and this is what Twitter users will click on to access it.
This is a practical objective because Zoom will be able to see if pairing with Twitter will increase users on their app. By implementing a platform that is easy to work and not have complicated steps will go hand in hand with Twitter and Zoom because their apps have these types of features (Twitter, 2020). The ZoomHub will be revolutionary in how followers of one another communicate on social media.
Cost/Benefits.Costs of implementing this platform should be minimal. We may have to hire outside contractors that have the knowledge of implementing such a platform that will make communication more accessible for thousands of users. The average base salary for a Zoom software engineer is $136,297, ( Glass Door, 2020), I suspect that if Zoom had to hire outside help, it would at least our average base pay for however long it takes to design the software. Other cost is to pay one percent of revenue that Zoom makes on the ZoomHub to Twitter. Instagram Live surged up 70% from February to late March (Burch, 2020). From this stat it would seem that users on Twitter would use a similar service like the ZoomHub.
Benefits from this implementation will outweigh the cost.
Measurement of Results. Measuring the results of ZoomHub could vary based upon how the Twitter community initially reacts to the new product. Instagram Live did not become overly popular until COVID-19 (Mohsin, 2020). Zoom should see immediate results because Twitter is just as big of a platform as Instagram and ZoomHub will be much more interactive. Twitter has about 180 million users that use the app daily and daily users are more likely to use a third-party platform (Omnicore agency, 2020). This roughly means that there is a 99% percent chance that we will have 1.8 million daily users. More and more users will start to use the ZoomHub the longer that is available to them. Zoom had a net worth of 137.81 billion on October 30 of 2020 (Csiszar, 2020). If one percent growth is consistent with profitability of the company, would be about 1.37 Billion in profit.