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In this video tutorial, the presenter demonstrates how to compress a file using WinRAR. The effectiveness of compression depends on the file type, with some types compressing more efficiently than others. The presenter uses a 700MB exe file as an example to show the compression process. To compress a file, the user needs to have WinRAR installed on their system. They can download it from the link provided in the video description. Simply right-click on the file you want to compress and select "Add to archive" to begin the compression process.