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This case study explores Microsoft Teams' strategic response to Zoom's rapid rise during the COVID-19 pandemic. It highlights the ways in which Microsoft leveraged its customer base, expertise in enterprise software, and integration with the Microsoft 365 suite to challenge Zoom in the video communications market. The case highlights the playbook Microsoft has used many times over the past three decades to compete against challengers who established a first-mover advantage. It covers two phases of the competitive battle between Microsoft Teams and Zoom. The first phase began with the launch of Microsoft Teams in 2017 and ended in March 2020, when the COVID-19 pandemic helped Zoom dominate the video communication market. The second phase of the battle focuses on how Microsoft Teams counterattacked to gain market share against Zoom.

Cases are developed solely as the basis for class discussion and are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. This case is based on public information alone; thus, the strategies and tactics mentioned in the case might not correspond to the actual actions of the companies they describe. For pedagogical purposes, the author might have fictionalized individuals, conversations, strategies, assessments, or other details. To order copies or to request permission to reproduce materials, call 847.491.5400, or email cases@kellogg.northwestern.edu. No part of this publication may be reproduced, stored in a retrieval system, made available to any LLM (e.g., ChatGPT), used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Kellogg Case Publishing.
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