Zoom Video Communications has been facing challenges in the post-pandemic era as the work-from-home trend slowed down and competition from Microsoft and other companies intensified. Despite the market performing well in 2023, Zoom stock has only seen a modest gain of 3% compared to the 27% rally of the Nasdaq Composite Index. This follows significant declines in both 2022 (-63%) and 2021 (-45%).
To counter Microsoft Teams, Zoom unveiled a new strategy during its Zoomtopia user conference in San Jose. The company is launching its own word processing application called Zoom Docs, which aims to compete with Microsoft’s Word and Alphabet’s Google Docs in the document creation software market.
Zoom describes Zoom Docs as a “flexible AI-powered workspace, purpose-built to address today’s hybrid work challenges.” The company believes that the current approach to document creation and collaboration no longer meets the needs of users.
This move into document software follows Zoom’s previous announcement in November, where they introduced email and calendaring software, similar to features available in Microsoft Teams.
By expanding its offerings, Zoom aims to demonstrate that the core of document creation and collaboration lies within meetings, rather than traditional office applications. However, this will be an uphill battle considering the dominant positions held by Microsoft and Google in the productivity applications market.
Zoom Docs is set to become generally available to customers in 2024, although pricing details have not been disclosed at this time.
In conclusion, Zoom is taking proactive steps to compete with Microsoft Teams by launching Zoom Docs, an AI-powered word processing application. This move comes as Zoom expands its offerings beyond videoconferencing, aiming to revolutionize document creation and collaboration. While facing tough competition from industry giants like Microsoft and Google, Zoom remains determined to carve out its place in the market.