Yvonne Chua, Co-Founder
27 May 2021 • 3 min read
Among dozens of video conferencing services, Zoom has emerged as a huge disruptive innovation from the pandemic, owing to its modern, video-first unified communications with an easy and reliable performance.
According to Christensen, disruptive innovation is the process in which a smaller company usually with fewer resources challenges an established incumbent business by entering the bottom of the market and continuing to move upstream. Specifically, the incumbents focus on enhancing their products and services to serve their most profitable customers. New entrants identify the overlooked customer needs and gain a foothold by delivering more suitable functionalities or value adds in a cost effective manner.
Image from Harvard Business Review
Low End Disruption
Zoom is considered as a low end disruption. Early on, its user friendliness and great performance has appealed to many small and medium sized companies and individuals at affordable prices. Not only has its cutting edge technology resolved the latency issue, but also delivered high quality audio and video, coupled with integrations that smaller companies are looking for. The motivation behind building such brilliant product that caters so well to the user needs is deep rooted in the co-founder Eric Yuan, as he understood the customers' pain points from his professional experience at WebEx previously.
“Yuan felt for the first time that he couldn’t satisfy his customers... Customers grew frustrated with the quality of the product. They wanted WebEx to work reliably and more intuitively. And above all else, they wanted the video to run seamlessly.”
Adapted from CNN Business: Everyone you know uses Zoom
By addressing these overlooked customer needs, Zoom appeals to companies with incumbent licenses yet, are willing to purchase and adopt Zoom.
New Market Disruption
The pandemic has triggered a new market disruption, in which remote working and virtual meetings have become the norm of many companies. Increasingly, people have adapted to new ways of working, collaborating with employees across the globe virtually, or adjusting to a hybrid workforce model to balance between in-office and remote work. This presents opportunities for Zoom to acquire a massive number of global customers who are new to video conferencing. By providing free and paid video conferences to facilitate remote learning, increase productivity and deepen collaboration, Zoom is able to capture greater market share overtime.
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References
Coronavirus: How the world of work may change forever
Disrupting Zoom: Startup Opportunities
Disruptive Innovation Theory: What it is & 4 Key Concepts
What Is Disruptive Innovation?
FAQs
These companies demonstrate how bold and disruptive innovation on Zoom goes beyond simply using it for remote meetings. They integrate Zoom into their workflows and platforms creatively, enhancing collaboration, communication, and customer experiences.
What kind of innovation is Zoom? ›
Zoom technology puts people at the center, enabling meaningful connections, facilitating modern collaboration, and driving human innovation through solutions like team chat, phone, meetings, omnichannel cloud contact center, smart recordings, whiteboard, and more, in one offering.
What is disruptive innovation example? ›
The wheel, the light bulb, and the cellphone are three examples of disruptive technologies. At the time, these innovations caused a profound break with previous patterns, bringing about major changes in people's lives.
Is digital camera a disruptive innovation? ›
An analysis of Kodak's response to digital photography
For Kodak, the invention and growth of digital photography was clearly a disruptive technology that had a dramatic impact on film sales. It was a once-in-a-hundred-years change for the company.
What is the biggest problem with Zoom? ›
One of the biggest problems with Zoom has been "Zoom bombing," in which uninvited participants crash a Zoom meeting and disrupt it. Over the weekend, Zoom released two new features to combat this.
What is the controversy with Zoom? ›
Potential Privacy Breach via Metadata and Personal Data
While Zoom specifies that it doesn't use actual audio, video, chat, or other communication content for training its AI models, the company's emphasis on “Customer Content” creates a loophole that could result in privacy concerns.
What type of technology is Zoom? ›
Zoom is a cloud-based video conferencing platform that can be used for video conferencing meetings, audio conferencing, webinars, meeting recordings, and live chat.
What type of business model is Zoom? ›
It is a one-stop solution for all types of needs for collaboration as it allows every mode of communication – may it be chatting, video conferencing, group meetings or simply calling. 3) The answer to How Does Zoom Work is by using the Freemium Business Model.
What is the concept behind Zoom technology? ›
Zoom is a communications platform that allows users to connect with video, audio, phone, and chat. Using Zoom requires an internet connection and a supported device. Most new users will want to start by creating an account and downloading the Zoom Client for Meetings.
Is Netflix disruptive innovation? ›
Netflix: A classic disruption story
Netflix's journey is the epitome of disruptive innovation. It began as a mail-in DVD service, appealing to a niche market ignored by then-giant Blockbuster. This segment included those indifferent to new releases, early DVD adopters, and online shoppers.
Amazon provides a clear example of disruptive innovation. Jeff Bezos, in 1995, subscribing to the notion that the internet could significantly boost commerce, launched Amazon to sell books to a growing, but largely ignored online shopping community. In doing so, he forced many bookstores to go out of business.
What are the two main types of disruptive innovation? ›
There are two types of disruptive innovation:
- Low-end disruption, in which a company uses a low-cost business model to enter at the bottom of an existing market and claim a segment.
- New-market disruption, in which a company creates and claims a new segment in an existing market by catering to an underserved customer base.
Among dozens of video conferencing services, Zoom has emerged as a huge disruptive innovation from the pandemic, owing to its modern, video-first unified communications with an easy and reliable performance.
Is SpaceX a disruptive innovation? ›
In conclusion, SpaceX's disruptive approach to space exploration, characterized by innovative cost-saving technologies, strategic partnerships, and organizational agility, is not only reshaping its own trajectory but also influencing the broader aerospace industry, including stalwarts like NASA.
Is TikTok a disruptive innovation? ›
But nothing has disrupted the music industry as much as TikTok. The short-form video site has propelled the careers of dozens of artists (often overnight) thanks to viral music and dance trends which users quickly latch onto.
What type of technology is zoom? ›
Zoom is a cloud-based video conferencing platform that can be used for video conferencing meetings, audio conferencing, webinars, meeting recordings, and live chat.
What is considered disruptive technology? ›
Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate. A disruptive technology sweeps away the systems or habits it replaces because it has attributes that are recognizably superior.
Is virtual reality a disruptive technology? ›
A Thorough Introduction to the Metaverse, AR, and VR as Disruptive Technologies. The Metaverse, AR, and VR are disruptive technologies that have the potential to revolutionize how we interact with each other and our environment.
Is Google a disruptive technology? ›
For example, the internet, Google, and other search engines were disruptive because they weren't extensions of previous technology. Instead, it was something that no one had ever seen before, making money that never existed before.
