December 2024
Economic downturns, unexpected crises, and societal disruptions can often paint a grim picture for businesses. Yet, history has proven that such tough times also serve as fertile ground for innovation, entrepreneurial spirit, and remarkable business success. For some companies, these crises have become defining moments that not only allowed them to survive but thrive in ways they never imagined. Two of the most compelling examples of businesses that were born or pivoted successfully during times of crisis are Zoom Video Communications and Dollar Shave Club.
When the COVID-19 pandemic took the world by surprise in early 2020, businesses everywhere were forced to reevaluate how they operated. With lockdowns in place and travel restricted, companies that once relied on face-to-face meetings and in-person interactions had to quickly transition to virtual communication. Video conferencing software became the lifeblood of remote work, online education, and virtual social gatherings.
While Zoom Video Communications, founded in 2011 by Eric Yuan, was not a new player in the market, it was during the pandemic that the company skyrocketed into global prominence. Prior to 2020, Zoom had established itself as a reliable tool for corporate communications, but it wasn’t until the global crisis forced companies to adopt remote work policies that the software found itself at the center of a societal shift.
The company’s user base grew exponentially from 10 million daily meeting participants in December 2019 to over 300 million by April 2020. With schools, businesses, and even healthcare services rapidly adapting to online environments, Zoom became synonymous with virtual communication. Yuan’s early decision to focus on ease of use and reliability for his platform paid off in ways that no one could have predicted. While competitors like Microsoft Teams, Google Meet, and Skype were also vying for attention, Zoom stood out for its user-friendly interface, high-quality video, and intuitive functionality, which made it the go-to solution for people new to virtual meetings.
This meteoric rise during a global crisis was not just about luck. Yuan had laid the groundwork for success by building a solid, scalable product years before the pandemic hit. His focus on listening to customers, providing seamless experiences, and making frequent updates allowed Zoom to weather the surge in demand without breaking down under the pressure. The company’s ability to quickly scale its infrastructure to support millions of new users made it a lifeline for individuals and businesses alike. Today, Zoom is not only a staple of the corporate world but a part of daily life for millions, transcending its initial role as a business tool to become a social, educational, and healthcare staple.
While Zoom’s success during the pandemic can be seen as a natural response to the widespread shift to remote work, the rise of Dollar Shave Club in the early 2010s offers another example of how crises can prompt entrepreneurial ingenuity. The company, which revolutionized the razor industry, was born out of frustration with the high prices of razors and shaving products in the United States, particularly from big brands like Gillette and Schick.
The razor industry, dominated by these two giants, had been marked by inflated prices and frustratingly opaque pricing schemes for years. In 2011, when Michael Dubin and Mark Levine launched Dollar Shave Club, their goal was simple: to offer a better alternative for consumers who were tired of overpaying for razors. Their vision was to create a direct-to-consumer model, where customers could receive razor blades on a subscription basis for a fraction of the price of traditional retail razors.
But what truly set Dollar Shave Club apart wasn’t just its business model; it was the way it positioned itself in the market. In an industry that had long been dominated by the polished, traditional advertisements of brands like Gillette, Dollar Shave Club took a radically different approach. The company’s first viral marketing campaign, which featured Dubin himself in a humorous and irreverent video, quickly resonated with consumers. The message was clear: buying razors didn’t have to be a complicated or expensive experience, and Dollar Shave Club was here to make it simple, affordable, and fun.
Although Dollar Shave Club’s rise can be linked to the broader trend of direct-to-consumer businesses gaining traction, the timing of its launch in the wake of the 2008 financial crisis helped it carve out a niche. In the aftermath of the Great Recession, many consumers were more cost-conscious than ever, looking for ways to save money on everyday items. Dollar Shave Club’s subscription model, which eliminated the need to go to stores and allowed consumers to save money on razors, was a direct response to the financial strain many individuals were facing. The company’s model was perfectly positioned to thrive in a post-crisis economy where consumers were increasingly turning to e-commerce for convenience and cost savings.
By 2016, just five years after launching, Dollar Shave Club had grown to over three million subscribers, and its impact on the razor industry was undeniable. The company’s disruptive approach forced traditional razor brands to adapt, with Gillette launching its own subscription service to compete. Dollar Shave Club’s success story was a testament to the power of a simple idea executed well, coupled with the right timing and market conditions. In 2016, the company was acquired by Unilever for a reported $1 billion, proving that crises can create opportunities for bold entrepreneurs who are willing to challenge the status quo.
What is it about crises that foster such remarkable innovation? For many businesses, a crisis creates a pressure cooker environment where the urgency to solve problems accelerates decision-making, and new ideas can be tested and implemented quickly. In times of uncertainty, companies are forced to pivot, whether it's adjusting to a global health crisis or responding to changing consumer behavior after an economic downturn. The pandemic allowed businesses like Zoom to thrive because it was a moment when the world was in need of digital solutions, and Zoom was ready to provide them.
Similarly, economic recessions, like the one in 2008, create a sense of financial urgency, prompting businesses to rethink their models and find more cost-effective ways to operate. Dollar Shave Club’s rise was a direct response to these shifting economic realities, where consumers were increasingly skeptical of overpriced products and looking for alternatives that offered better value.
In both cases, these companies not only identified an unmet need but also positioned themselves as accessible, customer-focused alternatives to legacy brands that were slow to adapt. The disruption caused by the crisis wasn’t a hindrance; it was an opportunity to innovate and build something better, faster, and more in tune with the needs of the time.
The success of Zoom and Dollar Shave Club demonstrates that crises, while undoubtedly challenging, can also serve as catalysts for transformative business ideas and innovations. Both companies emerged from periods of widespread uncertainty, offering solutions to problems that were amplified by the very crises they faced. Through ingenuity, adaptability, and a focus on meeting the needs of consumers in new and innovative ways, they were able to create lasting impacts on their industries and beyond.
The stories of Zoom and Dollar Shave Club remind us that even in the darkest moments, there are opportunities for those who are prepared, resilient, and willing to think outside the box. In times of crisis, the path forward often lies in embracing change, taking risks, and looking for ways to turn challenges into opportunities. By doing so, businesses can not only survive but thrive, emerging from difficult times stronger, more innovative, and better equipped to face the future.
