COVID-19 Impact on Distance Learning Market in ICT Industry
Zoom, a video conferencing platform saw its daily number of participants grow more than 25 fold in one quarter as well as their quarterly revenues became twice of their previous year annual revenues.
STRATEGIC DECISIONS FOR VENDORS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
The demand for distance learning has surged exponentially as the students and educators are using the video conferencing platforms on a daily basis. They are introducing newer features and tweaking their subscription plans to in order leverage this situation and convinces the users to subscribe to their plans. They are also rolling out free trial versions. The companies are focusing on achieving economies of scale through predatory pricing tactics.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE MARKET
In November 2020, Reuters reported that Sweden have decided to give the flexibility to the high schools in deciding their optimum mode of education and whether they want to switch from online to classroom based education while maintaining social distancing.
INCREASING NUMBER OF USERS TO CATER TO DIGITAL DEMAND OF SERVICES
The companies are taking various strategic decisions to increase and sustain their active users by rolling out various types of plans. Not only that, they are also increasing their back end support to ensure the smooth running of their front end operations. In addition, they are also raising funds to increase financial support and expand their operations
TO FORM PARTNERSHIP, ACQUISITION STRATEGIES TO INCREASE THE REACH AND STABILIZE THE SUPPLY
In November 2020, Lumen has expanded their partnership with Zoom on their already existing contract which they entered back in September.
IMPACT ON DEMAND
The pandemic has exponentially accelerated the demand of distance learning as the government has mandated the requirement of social distancing and the educational institutions are being mandated to switch their courses to online mode.
IMPACT ON SUPPLY CHAIN
Even though there has been a disruption in supply chain, there has been no disruption in distance learning as the entire mode of delivery has been through internet.
IMPACT ON PRICE
COVID-19 has positively impacted the distance learning as the educational institutes such as schools and universities have been forced to switch up their mode of delivery from offline to online due to social distancing norms put in by government. Due to this, the video conferencing application on which distance learning takes place have seen a huge surge in users and have been scrambling to keep their operations running smoothly. Governments have been actively supporting distance learning due to this. These platforms are raising funds in order to improve their backend services to ensure that there are no outages. Distance learning has become mandatory as they have introduced flexible study times and will continue to further as this pandemic rages on. This