Question

In the long run the Video Call applications market will eventually be dominated by a single player ( as in case of chat messenger market dominated by WhatsApp). Do you agree? Explain your answer

Answer 1

It is unlikely that just as this particular app took over the market for messaging, a particular app will take over the video calling market. The app was able to capture the market because it was first of its kind in the market. Before that, people depended on expensive text messaging. Once it took over, a brand value was created and all latecomers in the messaging market were more or less driven out. However, there are already so many video calling app as offering similar features that it is unlikely that one such app will corner the market. Because all of them are available at near zero costs, most people don't find much difference between them. However, if a unique video calling app comes up in the market that has much better features, it is possible that it is preferred to others. In the present circumstances, it seems that the market for video calling apps is quite competitive.