Strategic Plan

March 26, 2024

Presented by:
MBA684E - Business Strategy Anson TANG
Instructor: Dr. Mark A. Lee Betty TSUI
Caroline PRINCE
Contents
1. Organizational Assessment

2. Strategic Plan

3. Action Plan and Evalution

4. Q&A
ORGANIZATIONAL
ASSESSMENT
• About Udemy
• Vision & Mission
• External Environment
• Market Analysis
• Internal Environment
 About
World’s leading Education Technology platform for Online Learning

69M Learners | 75K+ Instructors |

210K+Courses | 75 Languages | 940M Course enrollments| 15.7K+Enterprise
customers

• Founded in 2010 and IPO in 2021 (NASDAQ: UDMY)

• Diverse Course Catalog & Interactive Learning

• Self-Paced Learning & Lifetime Access Eren Bali

Udemy’s Founder
• Free, Consumer & Enterprise Courses

• Business Model
 Vision, Mission & Values

VISION
To create a world where anyone can learn anything

MISSION
To improve lives through learning by offering flexible, effective skill development to empower
organizations and individuals
 External Environment

Industry Sector Raw Materials Government & Financial

• Market growth: 300K
International Resources
students in 2011 to 220 • Instructors • Govt Policies &
• FY 23 Revenue: $165.3
Million in 2021 compliance
million
• Quality Assurance • 22% YoY Growth
• Highly competitive • Data Privacy & IPR
• Udemy Business
• Market Entry : China

Economic Technology Sector Human Resources

Sector • Company Culture
• COVID impact • Evolution of AI, VR / AR
• Re-structuring Learning • Learning opportunities
• Gig Economy
• Cybersecurity Threats • DEI
 Market Analysis

MARKET GROWTH DRIVERS MARKET CHARATERISTICS

• Internet penetration, low-cost Hardware • Highly Fragmented market | Growth through M&A
• Demand for re-skilling & upskilling • High Growth stage fuelled by investment from VCs & BigTech
• COVID & remote work/learning • Substitutes : Physical classrooms
 Regional & Sector analysis

REGIONAL OPPORTUNITY SECTOR OPPORTUNITY

• Market saturated in North America & Europe • K-12
• Growth forecast in APAC, Middle East and LATAM • University/Higher Ed
 UDEMY Customer Profile

Gender Distribution

PRIMARY CUSTOMER PROFILE

• Male
• Age : 25-34
• Domain: Business , Software, Programming
 Board of Directors
Internal Environment
Udemy was founded by Eren Bali, and two other
co-founders in 2010

Bali was served as CEO until 2014 he stepped

down as Director in the Board.

Bali is oversight in the Audit Committee and the

Nominating & Corporate Governance Committee
in Udemy

Greg Brown- Chief Executive Officer (CEO) who

also used to be the President of Udemy Business
 Internal Environment

• Adopt collaborative network as their

interorganizational relationship framework

• Recruit real-world expertise as instructors

• Udemy’s Instructor Support Team (IST)

provides support and resources for instructors
to create the courses

• Offer review test video for instructors

(Ann Armstrong & Richard L Daft, Organization Theory & Design (Nelson
Education 2015), P.179)
 Internal Environment

Sales & Marketing

Sales & Marketing Production & Operation

• Learners (B2C) • Operates as a Software As A Service

(SaaS) platform
• Udemy Business (UB) (B2B) • AWS Server
- Organic Marketing Channels Advantage:
-Lower the operational cost
- Strategic Partnership Disadvantage:
-Out
Financeof & Udemy control, access.
Accounting
disruption etc
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Internal Environment

Sales & Marketing

Finance & Accounting Research & Development
• Initiated a series of funding round from • Curates to offer highest-quality content
Series A to E from their online learning marketplace
• Strategic partner in Japan invested $50M in
2020 • Features a modern architecture designed
• Total revenue overview: to support their continued growth at scale
$515.66 M (Y2021)
$629.1 M (Y2022) • Provide world-class experiences for all
• % of S&M / Revenue Spendings: learners by its machine learning (ML)
44% (Y2021)
Finance &
48% (Y2022) Accounting
• Stock price was weighted below S&P 500
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• Net Dollar Retention Rate (NDRR): 115%
 STRATEGIC PLAN

• Positioning in the marketplace

• Organizational Goals
• Strategic Alternatives
• Analysis of Options
• Choices Made
 Over 210,000 Massive
Accessible
Open Online Courses
Global Online
(MOOCs) Courses
Education
Marketplace
Positioning in the Marketplace Platform

Udemy positions itself a global online

education platform and course marketplace
for both consumers and enterprise
Udemy
Udemy
Leadership
Be a scalable learning platform for Business
Academy
organizations of every size
Organizational Goals Increase Udemy
International
Business
Expansion and
Penetration
Udemy is focusing in generating Localization
long-terms and sustainable growth
Expand learning
by pursuing list of strategies experinece and reach
Expand learning experinece
and reach broader audience
broader audience Increase
brand awareness

Pursue strategic
acquisitions Optimize
business model
and pricing
 Strategic Alternatives - Forward and Backward Integration

Backward Integration:
Establish partnerships or in-house
capabilities for content creation tools and
platforms, enabling instructors to produce
high-quality courses more efficiently

Forward Integration:
Evaluation:
Develop or acquire a platform for corporate
Conduct quarterly reviews of integration
clients to customize and integrate Udemy
initiatives to assess improvements in course
courses into their internal training systems,
quality, user engagement, and corporate
improving ease of access and applicability.
client satisfaction.
 Horizontal Integration Strategy

Partnerships:
Identify and partner with technology platforms
and content creators to fill gaps in Udemy's
current course offerings, particularly in emerging
technologies and soft skills.

Synergy Assessment:
Acquisitions:
Regularly assess the synergy between
Evaluate potential M&A targets that can
Udemy and its new partners or acquired
bring new user segments or unique
entities to ensure alignment with overarching
technological capabilities to Udemy.
strategic goals.
 Market Development & Market Penetration

Market Development:
Identify and enter new geographical markets
with tailored marketing strategies and localized
content.

Market Penetration:
Performance Tracking:
Enhance marketing efforts focused on
Implement KPIs to track growth in user base,
increasing user engagement and course
course enrollments, and satisfaction across
enrollments among existing markets,
new and existing markets and products.
leveraging data analytics to tailor
promotions.
 Reinvigorating Organizational Vision

Code of Conduct:
Update the organizational code of conduct to
reflect current social, environmental, and ethical
standards, ensuring alignment with future
strategic goals.

CSR Initiatives:
Impact Measurement:
Launch new CSR initiatives focused on
Establish metrics to measure the impact of
education for underprivileged communities,
CSR activities on community well-being,
sustainability, and digital literacy. Partner
environmental sustainability, and brand
with NGOs and other organizations to
perception.
maximize impact.
Quantitative Strategic Planning Matrix

Attractiveness Scores:
1: Not Attractive
2: Somewhat Attractive
3: Attractive
4: Highly Attractive
Forward & Backward Integration: TAS = 3.21
Horizontal Integration: TAS = 3.08
Market & Product Development: TAS = 3.73
CSR & Organizational Vision: TAS = 2.65
 Action Plan & Evaluation

R&D Investment: Allocate more resources towards innovative learning tools and AI technologies,
including AR/VR for immersive learning.

Localization & Market Penetration: Partner with more local instructors to develop courses in local
languages with culturally relevant examples and case studies, especially in Asian market.
Collaborate with more local educational institutions and corporates for customized learning solutions
for B2B development.

Product Quality: Implement a rigorous course certification process to ensure high-quality content.
Develop specialized tracks for industries and roles, offering bulk purchase options and customization.
 Balanced Scorecard (BSC)

KPI KPI
Revenue Growth Rate Customer Satisfaction Score
B2B Revenue
Financial Customers Course Completion Rates
R&D ROI Net Affiliation Score

KPI KPI
Employee Training Hours Learning Internal Time to Market
Innovation Index Quality Assurance
Turnover Rates
& Growth Process
Market Expansion Rate
Get Started
References
Meet Udemy Consultant Team

ANSON TANG BETTY TSUI CAROLINE PRINCE

Udemy Consultant Udemy Consultant Udemy Consultant

Thank You!