BYJU’S – The Learning App SWOT Analysis 2022

Author - Divyam Maheshwari

Strengths

• First Mover Advantage - Byju's has a first-mover advantage in a number of segments. It has experimented in various areas of Strategy. The Strategy & Execution solutions & strategies have helped Byju's App in coming up with unique solutions to tap the un-catered markets.

• Diverse Products – Byju’s offers different varieties of products. Content is available in all types 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 a strong financial position.

• High Customer Retention – Byju’s is great for student engagement in any study material. Research proves that on average a student spends a minimum of 40 mins once they open Byju’s App.

• Acquisition of competitor – Byjus has acquired White Hat Jr. for $300 million & Aakash Institute for $1 Billion.

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

Weaknesses

• Low Return On Investment – Even when the company has a strong balance sheet, the return on investment is low due to the high expenses which it has to incur.

• Bad Reviews – There are two sides to 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 the 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 wants the comfort of being anywhere for studying.

• Education due to Covid -19 – The education sector has been adversely affected due to Covid-19. It has given a 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 for competitive exams like JEE and CAT. Further, it can provide classes in technical and professional courses, extracurricular activities, coding, etc.

• Untapped Semi-Urban and Rural India – Byju’s still had opportunities for targeting major segments of India i.e. Rural and Semi-Urban. These people are also adapting to the new trend.

Threats

• Business Model can be imitated – Byju’s business model can be imitated by new entrants quite easily. So, this is a threat to 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 into this sector. So, there is always a threat from competitors and their strategies.

• Economic Recession – This is also the time of economic recession. People are willing to spend low amounts of money and also on essential products. So, they might not afford online classes for their children along with the school going on.