Another way of looking at it:
For n a positive integer, \(\displaystyle x^n\) is defined as "x multiplied by itself n times". That is, \(\displaystyle x^3= x\cdot x\cdot x\). From that we can see that \(\displaystyle x^{n+ m}\), "x multiplied by itself m+ n times", is the same as "x multiplied by itself m times" and then "x multiplied by itself n times": \(\displaystyle (x^n)(x^m)\). So we have \(\displaystyle (x^n)(x^m)= x^{n+ m}\), a very useful formula. We would like that formula to work for other, non-positive integer, powers of x, in particular \(\displaystyle x^0\). "0" has the property that it is the "additive identity"- for any n, n+ 0= n. So we want to have \(\displaystyle x^{n+ 0}= x^n= (x^n)(x^0)\). That will be true if we define \(\displaystyle x^0= 1\).