Simulating Zoom Revenue Model
This project aims to assess the profitability of Zoom's revenue streams by comparing the free model with ads against the premium model without ads. Through revenue analysis and simulation, we determine the more profitable strategy and evaluate the number of ads shown to free users to enhance user satisfaction by identifying the optimal monthly ad frequency.
Problem Statement: The objective of this project is to investigate which revenue stream is more profitable for Zoom - the free model with ads or the premium model without ads. Additionally, the aim is to analyze the number of ads shown to free users to determine if it is justified and if reducing the number of ads can improve user satisfaction.
Problem Solution: To determine which revenue stream is more profitable for Zoom, I analyzed the revenue generated from each strategy. I used a simulation approach to compare the revenue generated from both strategies. Furthermore, I analyzed the number of ads shown to free users to determine if it is justifiable. I also determined the optimal number of ads that should be shown each month to achieve the highest satisfaction rate for free users.
Project Details Summary
Technical Skills
Simulation, Data Table, What-If Analysis, and Solver in Microsoft Excel
Developed For
Course MGT 239: Simulation for Business