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Case Solution for BYJU'S The Blue Ocean Strategy

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Uploaded on July 12, 2025
Number of pages 29
Written in 2024/2025
Type Case
Professor(s) Mr liam
Grade A+

Institution Case Management
Course Case Management

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BYJU’S: THE BLUE OCEAN STRATEGY

CASE STUDY SOLUTION

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SYNOPSIS

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BYJU’s was founded by Byju Raveendran in 2007, when he was experiencing high demand for his tutoring
services, and continued to grow at a high rate for the next 10 years. From 2017 to 2022, BYJU’S acquired
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13 companies in India (e.g., TutorVista, Scholr, Toppr) and four companies overseas (e.g., Osmo, Epic,
Tynker, GeoGebra). The acquisitions included digital test preparation organizations that leveraged
technology for teaching students, but also more traditional teaching firms such as Epic and Aakash
Education Services Limited (see case Exhibit 1). The company’s target audiences included students who
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were preparing for all types of national level entrance exams, younger students learning to grasp complex
concepts, and even children as young as kindergarten students.
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Raveendran first entered the test preparation industry in 2007, offering tutoring services for Common Aptitude Test
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The Case Solution Starts From page 6

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ASSIGNMENT QUESTIONS

1. What were the competitive dynamics in the test preparation industry? What are the prospective
competitive dynamics in the test preparation industry and how might they influence future decisions?
2. How did BYJU’S differentiate itself from the existing strategic groups and create an uncontested market
space? In light of upcoming challenges and opportunities, how can BYJU’S strategically differentiate
itself from existing strategic groups and establish an uncontested space?

The Case Solution Starts From page 6

,3. How did BYJU’S create value innovation in its products? As BYJU’S moves forward, how can it
continue to incorporate value innovation into its products?
4. What factors contributed to BYJU’S developing a blue ocean strategy in its early stages? What potential
factors should BYJU’S consider to develop a blue ocean strategy in the future?

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BACKGROUND
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Porter’s Five Forces and Strategic Groups (Red Ocean Strategy)

Linking a firm to its environment is the cornerstone of competitive strategy design. Notwithstanding the
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vastness of the relevant environment, which includes both social and economic factors, the most significant
aspect of a company’s environment is the industry or industries in which it competes. In a competitive
perspective, factors external to the industry are very significant. Although external forces normally affect all
firms in the sector, the significance resides in the various capacity of organisations to adapt to them. There are
five essential competitive elements that determine a sector’s level of competitiveness (see Exhibit -1).

Strategic Groups

According to Michael Porter, industries can be categorized into strategic groupings based on their
competitive tactics, market segmentation, and other features (see Relevant Readings). These strategic
groupings are clusters of companies with similar strategic characteristics and comparable modes of
competition (see Exhibit -2).

The Case Solution Starts From page 6

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ANALYSIS

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1. What were the competitive dynamics in test preparation industry? What are the prospective
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competitive dynamics in the test preparation industry and how might they influence future
decisions?
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Organized tutor groups had the following characteristics:
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• Local students attended classes by using transit, cycling, or walking; out-of-town students stayed in
hostels or rented guest facilities.
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• Multiple faculty members taught a single subject.
• Multiple subjects were taught by a specialized faculty member in that subject.
•
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Administration teams scheduled classes, organized student batches, and distributed study materials.
• Multiple classrooms were used to teach different batches of students at the same time.
• Batch sizes varied, up to a maximum of 60 students.
• Cumulative fees applied for each course, leading some students to borrow to cover all fees.
• Some courses used the distance learning model.

Unorganized tutor groups had the following characteristics:

• Local students attended classes by using transit, cycling, or walking.
•

The Case Solution Starts From page 6

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EXHIBIT -4: SWOT ANALYSIS OF ORGANIZED GROUP OF TUTORS
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Strengths Weaknesses

• Multiple and specialized faculty • High price
• Administration team • Distant location
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Opportunities Threats
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• Personalized attention to each • Competitors in the same segment
student • Unorganized tutors
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The Case Solution Starts From page 6

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