Zoom Communications is a technology and videoconferencing application service-providing company. Eric Yuan founded the video conferencing application and platform in 2011. The company is operating its business worldwide. Today, we’ll discuss the PESTLE analysis of Zoom; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Zoom
Some of the main political factors in the Zoom PESTLE analysis are as follows;
I-Government Regulations
The consumer protection and data privacy government regulations and policies are very strict for the tech companies and the video conferencing service providing platforms. They comprise of data privacy, cybersecurity, consumer protection, labor laws, end-to-end encryption, and others. However, the objective of strict government regulations is to ensure the data privacy and cybersecurity of the user data on the platform.
II-Trade Policies
Zoom Communications is operating its videoconferencing service business in various countries across the globe. The data privacy and cybersecurity policies of different countries are variable depending on their foreign policy and diplomatic relations. For instance, some countries are the opponent of free speech and open communication; they would impose various types of restriction and polices to restrict the operations of the platform.
III-Geopolitical Tensions
The stable political environment of the country plays a key role for the growth of businesses and companies. For instance, if a country is going through the political conflict, border tension, roadblocks and procession; then it would push away many new potential investors and businesses. The geopolitical tension among countries would disrupt the operations of Zoom Communications.
Economic Factors Affecting Zoom
Some of the main economic factors in the Zoom PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country direct impacts the retail sale and growth of tech company and videotelephony platform. If a country has flexible policies for businesses and companies, then it makes sure the growth of businesses. They would create a lot of employment opportunities for the individuals and attract businesses; they’re willing to buy the videoconference services of Zoom Communications to expand their business.
II-Currency Exchange Rate
Zoom Communications is operating its videoconference business in various countries across the globe. The company has a very large network of employees and operational infrastructure in various currencies. However, the currency exchange rate market is highly unstable and it keeps fluctuating due to multiple factors. A small change in currency exchange rate would increase the cost and expenses of the tech company.
III-Inflation Rate
The inflation rate is the key economic indicator and it directly impacts the retail sales of businesses and companies. This happens when the country and the central bank start printing more money than the required level, and then the per-unit value of all the currency notes is reduced. As a result, the price of services and products would increase, and it would reach a point where they would become unaffordable to them.
Social Factors Impacting Zoom
Some of the main social factors in the Zoom PESTEL analysis are as follows;
I-Remote Working Trends
The trend of remote jobs and remote working has been increasing significantly in recent years. In fact, remote jobs have changed the whole dynamic of the employment industry. Nowadays, people prefer to do remote work and remote jobs because it offers them a lot of flexibility to live and maintain a work-life balance. While doing remote jobs, people need Zoom Communications to connect with their colleagues and peers; and engage in video conferences.
II-Flexible Communication Platform
Employees and business professionals want a flexible communication tool that allows them to perform multiple tasks at once. They could be in the form of texting, calling, video calling, business conference, and others. Zoom Communications has the capability to perform all the business communication tasks and operations at once without any delays and disruption.
III-Diverse Culture
Zoom Communications has built and maintained a very large database of diverse employees from all over the world. According to an estimate, approximately 50% of the company’s employees are foreigners from various ethnicities, cultures, and backgrounds. It shows the company’s strong commitment to diversity and investing it back into the community.
Technological Factors Affecting Zoom
Some of the main technological factors in the Zoom PESTEL analysis are as follows;
I-Advanced Technology
Zoom Communications is investing a significant amount of capital resources on the latest advanced technology like AI, automation, ML, data analytics, end-to-end encryption and others. It allows the communication and tech company to smoothly and efficiency perform its operations and reduce the wastage of resources.
II-Regular Updates
In order to keep up with the growing trends and security measures, Zoom Communications sends regular updates of its applications to all the users. It allows the company to regularly update the features and improves the functionality of the application to remain competitive relevant to the growing customer market trends.
III-Cybersecurity Measures
The consumer market has become highly cautious about the data privacy and cybersecurity of the communication platform. In order to strengthen the security measures, Zoom Communications has implemented the end-to-end encryption on all the communication of the platform. It allows the company to shut the mouths of all the critics and strengthen its platform.
Legal Factors Impacting Zoom
Some of the main legal factors in the Zoom PESTEL analysis are as follows;
Regulatory Compliance
Zoom Communications should comply with the government regulations and policies of various countries. It comprises of consumer protection laws, labor laws, data privacy, cybersecurity, IPR (intellectual property rights), patents, and others. Regulatory compliance would help them to smoothly and efficiency perform their operations without disruption and delays.
Environmental Factors Affecting Zoom
Some of the main environmental factors in the Zoom PESTEL analysis are as follows;
Sustainability Initiative
Zoom Communications should make a strong commitment to the environmental sustainability initiatives. It comprises of investing in the renewable sources of energy, biodegradable plastic for electronics products to reduce the carbon emission rate. It allows them to keep up with the growing environmental sustainability trends.
Conclusion: Zoom PESTLE Analysis |PESTEL Analysis of Zoom |External Environmental Analysis of Zoom | Strategic Analysis of Zoom
After an in-depth study of the pestle analysis of Zoom Communications; we have realized that Zoom Communications is the leading communication platform. If you are learning about the Zoom PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economical, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
