BYJU'S: The Blue Ocean Strategy

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Case

Reference no. W33972

Subject category: Strategy and General Management

Authors: Kushagra Sharan (Indian Institute of Management Kozhikode (IIMK)); Anubha Shekhar Sinha (Indian Institute of Management Kozhikode (IIMK))

Published by: Ivey Publishing

Originally published in: 2024

Version: 2024-01-18

Length: 14 pages

Data source: Field research

Topics: Red Ocean strategy; Competitive strategy; Strategy; Strategy canvas; Strategic groups; Technology; Learning; General management

Share a link: https://casecent.re/p/196513

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Abstract

BYJU'S first entered India's test preparation industry in 2007 with technology-enabled learning, when the market was uncontested, allowing the company to grow steadily until 2015 and achieve unicorn status in the industry in 2017. However, many new organizations started joining the technology-focused learning sector in 2014-15, greatly reducing the market share BYJU'S was enjoying before it was challenged. By 2020, with many new educational technology start-ups in the market, the industry was valued at USD1.43 billion. BYJU'S dominated the market with a 57 per cent share, but the founder knew that the market was no longer uncontested. Therefore, to retain its position as a market leader, BYJU'S acquired firms rapidly. The strategy, however, soon led to financial crises and catastrophic losses. From 2007 to 2015, BYJU'S created high levels of value before switching to a growth strategy of rapid and numerous acquisitions, leading to cash crunches and financial challenges. How could the founder turn his company around to regain the company's early success?