Educomp Solutions Limited's Business Model

Educomp Solutions Limited's Business Model
Case Code: BSTR352
Case Length: 18 Pages
Period: 1998-2009
Pub Date: 2009
Teaching Note: Not Available
Price: Rs.300
Organization: Educomp Solutions
Industry: IT, Education Solutions
Countries: India
Themes: Business Model, Competitive Advantage
Educomp Solutions Limited's Business Model
Abstract Case Intro 1 Case Intro 2 Excerpts


Business Initiatives

Educomp categorized its offerings into business- to- business (B2B) and retail & consulting. Its B2B division comprised SmartClass, ICT and Professional Development products. Educomp's retail & consulting division included of Mathguru, ETEN, Millennium Schools, TMS, Vidya Prabhat schools,, learnhub, RTW and EuroKids. Educomp's B2B division contributed 91.7% and retail & consulting division contributed 8.3% to the company's sales of Rs. 5011.7 million for FY 2008-09...

SmartClass SmartClass was a digital initiative aimed at private schools. It was an instructor led content system. SmartClass helped teachers in private schools in using digital resources such as graphics, 3D images and video clips in addition to the traditional chalk and board method for teaching...

Educomp had products like CD-ROMs and platforms like websites and schools that catered to the retail segments. The company's RTW and EuroKids catered to the preschool segment of education. Educomp followed the franchising route to expand these pre-schools. RTW was the first structured and process driven IP in early child education in India...

The Strategy

Educomp recognized the scope and opportunity for providing IT-enabled learning solutions in Indian schools in the mid-1990s. As usage of computers in schools during early 1990s was at a nascent stage, Educomp started its operations by setting up computer labs at schools...

Opportunities and Challenges

Educomp entered into contracts with its customers binding them for certain period of time. Such a contract based business provided visibility to Educomp's revenues, and reliable estimates of cash flows, analysts felt, would enable Educomp to plan its capital outlays more effectively......

The Road Ahead

Educomp planed to serve 15 million learners by 2010 and aimed to be in the top five K-12 education companies worldwide by 2012. Its tie up with Raffles Education Corporation to provide K-12 solutions in China would help it in working towards this goal as China was one of the world's largest K-12 education markets...


Exhibit I: A Note on the Education Sector in India
Exhibit II (A): Income Statement of Educomp (FY 2006-09)
Exhibit II (B): Balance Sheet of Educomp (FY 2006-09)
Exhibit III: Picture of Digiboard System
Exhibit IV: SAS in Action
Exhibit V: Picture of Eten Delivery Model

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