Factors that can affect Byju’s business

Factors affecting the industry would have a direct impact on Byju’s as well. There are various sources of
uncertainties in the industry. The most prominent ones are a direct result of the industry structure because
of the way incentives are distributed.

Let us first discuss the external factors that can affect Byju’s business positively or negatively.
 To remain relevant in the industry, Byju’s must address the most important factor that can derail
the online education space, i.e, lack of interaction with the peers and the instructors and it must do
it better than its competitors. For improving customer engagement level there needs to be a proper
feedback mechanism with multiple touch points. This also brings in one of the other challenges that
the industry needs to address – advantage with the offline players to provide hybrid channels
where they can use their traditional offline channels with online value-added services. Byju’s can
make use of its vast channel to provide offline touch points to bridge gap with the offline players.
 Demographic shifts show a favorable picture for Byju’s. India has the largest number of school-
going children than any other country. With its leading position in the online education space & the
favorable outlook of foreign investors towards India, Byju’s is in a good position to get the most
from our country’s much awaited demographic dividend.
 Many of Byju's competitors have lost money in other developing countries due to the volatility in
foreign exchange rates. Thus, the volatility of exchange rates needs to be looked at as well given
that Byju’s has big plans for expanding in the American & the European markets.
 5G has a huge potential to transform the online education space, especially the marketing aspect of
the online players.
 The company must have high standard of respect for property rights, especially in the international
markets where large infrastructure investment will be required initially, and legal issues are dealt in
a much stricter manner.
 With its aim of making learning fun, Byju’s will have to watch out for the competitors who are
increasingly adopting its strategy of gamification of content.

Let us look at some of the internal factors that can impact Byju’s business
 Moving ahead Byju’s will need to address the gaps in its current offerings, for example, it can
provide much detailed preparation material for exams like JEE which it currently lacks.
 Though Byju’s content is unique with interactive graphics, it is not hard to copy. Thus, going ahead,
Byju’s strength in content may not become a source of competitive advantage.
 Byju’s competitors have also been able to raise large amount of money from domestic and foreign
investors. So, in future there will be more players entering the market and there will be downward
pressure on the margins.
 There is a high cost involved in replacing the existing courses and the experts. The experts providing
courses on Byju’s app can be easily scouted by the competitors and it gives the course experts a
huge bargaining power.
 For long-term growth, Byju’s will need more than just a freemium model to compete with free
content providers like Khan Academy. Currently Byju’s lack a sustainable model for revenue
generation.
 Byju’s has been providing its content, mainly, in English language. India is a diverse country with
many languages spoken across the country. The new education policy also vouches for the medium
of instruction to be an individual’s mother tongue. Byju’s need to provide content in regional
languages as well and must do it before its competitors to remain a brand of choice in the online
education space.