BYJU’S – The Learning App SWOT Analysis

Updated: Nov 10, 2020

Author - Divyam Maheshwari



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.

  • 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

  • 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.

Recent Posts

See All