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In this video tutorial, the presenter demonstrates how to compress a file using WinRAR. The effectiveness of the compression process depends on the type of file being compressed, such as exe, iso, or mp4 files. Different file types may result in varying levels of compression efficiency. The presenter shows an example of compressing a 700MB exe file. To compress a file using WinRAR, the software must be installed on the system. The process involves right-clicking on the file to be compressed and selecting the WinRAR option. You can download WinRAR through the link provided in the video description.