GROUP NO.

- 8

CASE STUDY - NIIT

GROUP MEMBERS

 RAHUL GUPTA
 KHANJAN CHOKSI
 DURVI KHIMASIYA
 ANKITA KOTHARI
 CHANDNI THAKER
 PARTHIV JHONSA
 KRUNAL MEHTA
NIIT
 NIIT was first to start a computer education centers in
the organised sector in India imparting IT training.

 In 1981, Rajendra Pawar and Vijay K Thadani promoted

NIIT.

 In 1982, NIIT started its operation in Bangalore and

Karnataka.

 In 1983, NIIT got recognition from the American Council

on Education.
CONTD..

 NIIT became popular in India in IT education

and had good placement records.

 In 1993 , NIIT diversified into software

business.

 NIIT received many awards and recognition

for its services in the software and education
business segments.
MARKET DEVELOPMENT
STRATEGIES
 NIIT thrust on R&D in education and its customized
courses which helped it establish a stronghold in Indian
IT education market.

 Company’s strategy was to project a career in

computers on par with other professions. For that
company advertised extensively.

 Franchise business model was adopted to expand its

reach all over the country, as setting up its centers was
costly.
CONTD..

 To develop strong brand recall among students,

NIIT entered into tie-ups with schools and
colleges.

 ‘Bhavishya Jyoti Scholarship’ attracted students

from lower middle class and small towns.

 NIIT entered into alliances with foreign

universities to help its students gain admission in
foreign universities for higher education.
CONTD..

 NIIT launched the Learning through

Education and Direct Application(LEDA)
program to integrate multimedia with
education.

 NIIT launched an online learning facility

through the website.
IMPACT OF EXTERNAL
ENVIRONMENT
 In 2001 company’s net profit declined by 57%.

 NIIT attributed the downfall to the layoffs in the

IT industry.

 It led to delay in decision making of prospective

students to join computer courses , fall in
revenues from overseas centers, prospective
partners delaying in signing up of new centers.
STRATEGIES ADOPTED TO BATTLE
THE SLOWDOWN
 Increase focus on legacy software business, retail finance
business.

 To reach out to more customers co. opened new centers.

 Co. introduced new courses for new technology.

 The co. partnered with the IFC and CITI BANK.

 GNIIT course was extended from 7 cities to 16 cities.

 SWIFT JYOTI course was introduced for women.

CONTD..
 For school children, NIIT started a Project K-12 which
focused on implementing projects for school children.

 In FUTURZ career program a innovative package of short

term courses for students appearing for engineering and
medical entrance exams was introduced.
NIIT - ORGANISATIONAL
STRUCTURE

Corporate
centre

Global Global
learning software
business business

 Quick decision .
 Revenues increased by 10 billions.
NIIT DIVERSIFICATION
 Global software business.

 50% of the revenues came from software business.

 Though NIIT is known for IT Education, so its diversification will

help the company to improve its bottomline on sustainable basis
since increase in enrollments was for basic courses which fetched
low income.

 However company’s focus on IT education business will be shifted

to software business which could have negative impact on IT
education business.

 Separate business unit.

SWOT ANALYSIS

Strengths
 High R&D
 Innovation
 Aggressive Marketing
 Brand
 Long Term Courses

Weakness
 Brand perception
SWOT ANALYSIS

Opportunities
 Tie ups and alliance
 Courses
 Growth of education sector

Threats
 Competition
 Recession
Thank you