Folder vs archive

Tools like zip compress the file and decrease the size.
But did not get the point to use the archive.

Hello @dnpuneeth3,
Archiving means that you take 10 files and combine them into one file, with no difference in size. If you start with 10 100KB files and archive them, the resulting single file is 1000KB. On the other hand, if you compress those 10 files, you might find that the resulting files range from only a few kilobytes to close to the original size of 100KB, depending upon the original file type.

I understood that archive makes multiple files to one. What is the use of combining multiple files to single ?

Hello @dnpuneeth3,
in a simple case, if you need to take a backup from multiple files or dirs, in this case, you will combine them in a single file and extract them when you need that.