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Konsult Assignment-1 K

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KONSULT

1. Analyse the Online Education Industry in India using Porter’s Five Forces model
With a diagram. Substantiate with relevant data.
(Max 500 Words)

2. Do the SWOT analysis of one of the companies operating in the same industry
(Max 500 words)

Submitted By: Nikhil_9039303_PGP24

Online Education Industry in India
1) Barriers to Entry or Threat of New Entrants: As per a report by KPMG and Google, the Indian online
education industry is expected to grow to USD 1.96 billion in 2021 from USD 247 million in 2016, witnessing 8x
growth in 5 years. This makes the industry very attractive for new investors. Also since online education doesn’t
require huge amounts of inves4tments in terms of building, furniture, full time staff etc., the number of
suppliers would only increase with time. Product differentiation is very low since most of the educators have to
follow the same standardised syllabus. Since the education in the primary and secondary levels is comparatively
easy, there are infinite numbers of educators available in the industry. As we move upwards, the number of
qualified educators reduce. One of the barriers to entry could be created by use of advanced technology in
innovative ways to reduce the cost of teaching and giving the child more to take back in order to increase their
satisfaction.

2) Power of Buyers (Students) : The bargaining power of a student in India would be considered low at the
initial levels of the education system owing to the fact that the number of students in online education is
expected to grow to 9.6 million in 2021 from 1.57 mn. In 2016. As we move upwards the number of students
would reduce and the bargaining power would increase. The more educated a student is the more they will
demand for their money. With time, self motivated educated buyers will start researching and comparing more
courses while purchasing. This would further increase the power of the buyers.
Online Education Industry in India
3) Power of Suppliers ( educators) : All most all of the companies in the online education industry buy their raw
material from a large number of suppliers, thus a single supplier may not have much power over the company.
The power of suppliers also increase as we move upwards in the education system. A permanent professor of a
well renowned university will have more bargaining power than a class 12th teacher. Higher the bargaining
power of supplier lower will be the profitability.

4) Industry Rivalry : The industry sees intense rivalry amongst suppliers as it is an open marketplace and anyone
with an internet access and some teaching experience can enter the industry. The competition is expected to rise
as the weightage to user experience rises. The educators would then have to work alternate technology enabled
learning solutions, value added services such as counselling, soft skill development etc. The availability of free
content is also rising with time as rivals are investing in marketing campaigns to attract new customers.

5) Threats of Substitute Products : A substitute to online education platform would be physical classroom
teaching. Since India is a vast country with diverse sets of people in terms of their financial capabilities, providing
physical education to each student isn't practically possible. Innovation in technology will enhance the
experience of the students and allow them to learn at their own pace which cant be done in case of physical
education. The switching cost in case of online education is too low and hence the threat of customers moving
for cheaper and better substitutes is high.
Online Education Industry in India

Threat of New Power of Buyers –

Entrants – Very
High Low

Power of Suppliers
Industry Rivalry –
–
Very High
Low

Threats of
Substitute
Products-
High
 SWOT Analysis of BYJU’S:
An Online Education Company in India
 • One of the leaders in the industry.
• 40 mn. users
• 60% students from outside top 10 cities, hence deeper levels of penetration and understanding of
the needs of the customers.
Strengths • Unique content with innovative graphics
• Good image amongst a very young population of India.
• Well funded company with a total funding of $1.4 billion, highest in the industry.
• Top Competitor Toppr only generates 2.26% of Byju’s revenue.

• Majority of students in India are in rural areas and hence have no access to the pre-requisites
Weaknes needed to learn from Byju’s
• Perceived as a substitute for Coaching/ extra classes and NOT schools/ classes
s • Not much presence in the live online tutoring sessions.
 • It could develop its programs in different regional languages.
• Betterment in teaching technology.
• Increasing numbers of internet users across different age groups.
Opportunit • The Ongoing Global pandemic has also given a big push to the industry as people are
y more comfortable in the boundary of their household.
• Enter into live online tutoring.

• Vibrant marketplace with huge number of competitors and large amount of innovations.
• Though the content of byju's is unique having interactive graphics, It can still be copied.
Threats • Government policies may change with time. Education in the US is mainly public and
hence the profitability is very low.
• The cost of innovation and content generation would go up with rising competition.