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BYJU’S -THE LEARNING APP

2020

MARCH 14

BYJU’S- The Learning App

Authored by: 21MBA021 Rituja Kumari.
21MBA062 Rutuja Vaidya.
21MBA006 Harshada Jadhav.
21MBA107 Sakshi Motwani.
21MBA106 Sanket Deshpande.
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21MBA108 Hrushikesh Batte.

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Byju’s -The Learning App
Ed-tech Company
BYJU'S is an Indian multinational educational technology company, headquartered in Bangalore. It was founded in 2011
by Byju Raveendran and Divya Gokulnath. as of December 2021, BYJU'S is valued at US$18 billion[4] and has over 115 million
registered students.

Bargaining Power of Supplier:

The supplier in the Taiwanese Byjus The Learning App sector has a low bargaining power despite the fact that the

market has supremacy of 3 players including Powerchip, Nanya as well as ProMOS. Byjus The Learning App

producers are simple original tools producers in calculated alliances with international gamers for innovation. The 2nd

reason for a low bargaining power is the truth that there is excess supply of Byjus The Learning App devices because

of the large range production of these leading sector gamers which has decreased the price per unit and boosted the

bargaining power of the purchaser.

Threat of Substitutes & Degree of Rivalry:

The threat of replacements in the marketplace is high provided the reality that Taiwanese manufacturers take on

market share with worldwide players like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This

shows that the marketplace has a high degree of rivalry where suppliers that have style and also growth capacities

together with producing proficiency might have the ability to have a greater bargaining power over the marketplace.

Bargaining Power of Buyer:

The market is dominated by gamers like Micron, Elpida, Samsung and Hynix which further reduce the purchasing

power of Taiwanese OEMs. The reality that these calculated gamers do not enable the Taiwanese OEMs to have

access to modern technology indicates that they have a higher bargaining power fairly.

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Threat of Entry:
Risks of entry in the Byjus The Learning App production market are low due to the fact that structure wafer fabs as well

as buying devices is very expensive.For simply 30,000 systems a month the funding requirements can range from $

500 million to $2.5 billion depending on the size of the systems. Along with this, the manufacturing needed to be in the

most recent modern technology and also there for new players would certainly not have the ability to take on dominant

Byjus The Learning App OEMs (original tools manufacturers) in Taiwan which had the ability to enjoy economies of

range. The present market had a demand-supply inequality and also so oversupply was already making it difficult to

allow new players to delight in high margins.

Firm Strategy:
The area's production firms have counted on a strategy of automation in order to lower prices through economic

climates of scale. Given that Byjus The Learning App production uses common processes and conventional and also

specialized Byjus The Learning App are the only two categories of Byjus The Learning App being manufactured, the

procedures can conveniently use mass production. The sector has leading makers that have actually formed

partnerships in exchange for technology from Korean as well as Japanese firms. While this has actually brought about

accessibility of modern technology and also scale, there has actually been disequilibrium in the Byjus The Learning

App market.

Threats & Opportunities in the External Atmosphere

As per the interior as well as exterior audits, possibilities such as strategicalliances with technology companions or

development with merging/ purchase can be explored by TMC. Along with this, a step towards mobile memory is

likewise a possibility for TMC particularly as this is a niche market. Risks can be seen in the type of over reliance on

international players for innovation as well as competitors from the US as well as Japanese Byjus The Learning App

suppliers.

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 Porter’s Five Forces Analysis

Strengths

First Mover Advantage - Byju's has first mover advantage in number of segments. It has experimented in various areas

Strategy. The Strategy & Execution solutions & strategies has helped Byju's App in coming up with unique solution to

tap the un-catered markets.

Diverse Products – Byju’s offer different varieties of products. Content is available in all type of formats like stories,

visuals and theories as well. Also available in regional languages. They provide a wide variety of options to students.

Strong Finance – The company’s balance sheet shows strong financial position.

High Customer Retention – Byju’s is great in students engagement into any study material. Research proves that on an

average a student spends minimum of 40 mins once they open Byju’s App.

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Acquisition of competitor (White hat Jr. ) – Byjus has recently acquired White Hat Jr. for $300 million. Together they will

provide coding classes to students.

Customer Loyalty – Customers are loyal towards the company because of the good quality products and services.

Weaknesses

Low Return On Investment – Even when the company has strong balance sheet, the return on investment is low due to

high expenses which it has to incur.

Bad Reviews – There is two sides of each coin. So, along with positive reviews there are also negative reviews by

many customers who are not satisfied with the service and find it expensive.

Inventory Management – The company faces challenges with proper inventory management.

Less US Children Enrollments – The company wish to grow in International market but the number of US Children

enrollments is declining.

Opportunities

Increased Trend of Online Education – With the increase of e-commerce in India, the trend of education has also

increased over the last few years. Everyone want the comfort of being anywhere for studying.

Education due to Covid -19 – Education sector has adversely affected due to Covid-19. It has given great opportunity

to Byju’s to increase its market as more and more people are dependent on online education.

NEP 2020 encourages online education – The New Education Policy has laid great emphasis on online education and

the Govt. is completely supporting it.

Introduce Professional Courses – Currently Byjus is only providing classes for school students and preparation of

competitive exams like JEE and CAT. Further it can provide classes in technical and professional courses, extra

curricular activities, coding, etc.

Untapped Semi-Urban and Rural India – Byju’s still has opportunities for targeting major segment of India i.e. Rural

and Semi- Urban. These people are also adapting the new trend.

Threats

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Business Model can be imitated – Byju’s business model can be imitated by new entrants quite easily. So, this is a

threat for the company.

Data Privacy – Data privacy is very essential for companies like Byju’s.

Competitors – This being an era of online education, more and more companies are coming in this sector. So, there is

always a threat of competitors and its strategies.

Economic Recession – This is also the time of economic recession. People are willing to spend low amounts of money

and also over essential products. So, they might not afford online classes for their children along with the school going

on.