K

v
Konsult Assignment-1

v
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)
 Online Education Industry in India: Porter’s 5 Forces Model:

Power of Buyers Industry Rivalry Power of Suppliers

1) Want of the best content. So services need to be
properly delivered.
2) Expected growth of users from 1.6mn in 2016 to
9.6mn by 2021.
3) Higher switching rate owing to instalment dues and
ease of admission/purchase.
4) Complete information of discount schemes and
promos.
5) No loyalty to any said brand.
6) Low prices make it easier for them to switch contents.
1) Rising number of competitors due to increasing
demand and necessity.
2) Growth rate of 21% during 2020 – 2024.
3) High customer switching rate due to ease of
admission or purchase and cheaper cost of
alternatives.
4) Average degree of differentiation except a few top
players. Moderate or non-branded services suffer.
5) For better qualified teachers. High demand of jobs
due to growing unemployment.
1) Ease of learning, flexibility, and a wide range of study
materials.
2) Expected to grow from $247 mn to $1.96 bn by 2021.
2nd largest market after USA.
3) Adoption of innovative technologies like Artificial
intelligence (AI), Machine learning (ML), Big Data
Analytics, Block-chain.
4) COVID-19 scenario where Learn from Home has
become necessary.
5) As of now, it encompasses all levels of education from
primary to higher education and beyond.

Threat of new entrants Threat from Substitutes

1) Local classes and personalised teaching are still
1) Better business model catering to changing
preferred.
scenario (like COVID-19).
2) Real life interaction with teachers and mentors is
2) Emerging as start-ups with heavy funding.
considered more efficient than virtual study.
3) Collaboration with highly qualified professors and
3) Pen and paper tests are still in demand owing to
mentors.
subjective nature of certain exams.
4) Customized preparation material for various
4) Doubt Clearance sessions are essential which are
exams.
not properly offered by online education.
5) Yet, smaller players finding hard to compete
5) Yet very high costs (increased by 175%) are
against bigger players.
turning focus on e-education.
SWOT Example of UNACADEMY
Strengths
- Online content highly customized as per the student’s needs.
- Caters to various competitive exams of India like JEE, NEET, UPSC
etc. which has a massive number of aspirants.
- High credibility and qualifications of the educators and founders.
Dr Roman Saini, one of the founders, is a medical graduate from
AIIMS and has already qualified UPSC.
- High quality mentoring and teaching. Modules are designed as per
demand of students.
- Low pricing and affordable products in view of brick
and mortar coaching classes.
UNACADEMY
Opportunities
- The firm is set to become the next unicorn after Byju’s in the online
educator sector.
- Increasing subscriber base which clocked around 250 million views
on their You Tube videos in April 2020.
- Unacademy has raised a total of 198.5 million from over 7 rounds of
funding.
-The major investors of the company are Facebook, General Atlantic
and Sequoia Capital India.
- Unacademy is to provide 20,000 free live classes to all the users
and new users in the wake of CoVID-19 pandemic.
Weaknesses
- The model for revenue generation for Unacademy is via donation i.e.
if videos on Unacademy helped you in any way during your
preparation then you can contribute any amount as per your wish.
- Subscribers are non-serious in nature who do not intend on payment
for the content.
- Lack of quality content. This is due to lack of vetting of educators.
Almost anyone can become a teacher on the platform. Dilution of
standards.
- More than 90% of Indian population is digitally illiterate.
- Lack of personalised mentorship and interaction.
Threats
- Rising competition from similar players like Mrunal, InsightsIAS,
Kreatryx etc.
- Large number of videos flooding the platform. Difficult user
interface and search filters.
- Recently, in 2020, 11 million Unacademy user accounts were hacked
and up for sale on Dark Web. Data privacy is a threat due to lack of
any Data Protection Act in India.
- Lack of specialisation and targeting of audience due to wide variety
of products give a diffused look to the platform.
- Brick and mortar classes and personalised mentorships are still higly
valued.