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Harvard Case - SNA Educa (ex Codesser)

"SNA Educa (ex Codesser)" Harvard business case study is written by Mladen Koljatic, Monica Silva. It deals with the challenges in the field of Entrepreneurship. The case study is 22 page(s) long and it was first published on : Oct 9, 2014

At Fern Fort University, we recommend that SNA Educa prioritize a strategic growth plan focused on international expansion through strategic partnerships and targeted market segmentation. This strategy will leverage the company?s strong foundation in technology and analytics to capitalize on the growing global demand for online education while mitigating risks through a phased approach and strong partnerships.

2. Background

SNA Educa, formerly known as Codesser, is a successful online education platform founded by two entrepreneurs, Amit and Alok. The company has achieved significant growth in India, offering a wide range of courses in technology and business. However, they face the challenge of scaling their business further and navigating the competitive landscape of the global online education market.

The key protagonists are Amit and Alok, the founders of SNA Educa, who are passionate about providing high-quality education and are seeking to expand their reach internationally. They need to make strategic decisions regarding market entry, partnerships, and resource allocation.

3. Analysis of the Case Study

SNA Educa?s success can be attributed to several factors:

  • Strong product development: The company offers high-quality, relevant courses in technology and business, catering to the growing demand for digital skills.
  • Effective marketing: Their online marketing strategies, including social media and content marketing, have been successful in attracting a large student base.
  • Entrepreneurial leadership: Amit and Alok?s vision and commitment to innovation have driven the company?s growth.

However, challenges exist:

  • Competition: The global online education market is highly competitive, with established players like Coursera and Udemy.
  • International market complexity: Navigating different regulations, cultural nuances, and payment systems in new markets presents a significant challenge.
  • Resource constraints: Expanding internationally requires significant investment in technology, marketing, and talent acquisition.

To analyze the situation further, we can utilize the Porter?s Five Forces framework:

  • Threat of new entrants: The online education market is relatively easy to enter, with low barriers to entry. However, achieving scale and brand recognition requires significant investment.
  • Bargaining power of buyers: Students have a high degree of choice in the online education market, making them price-sensitive.
  • Bargaining power of suppliers: The supply of instructors and course content is relatively abundant, limiting the bargaining power of suppliers.
  • Threat of substitute products: Traditional education institutions and other online learning platforms pose a threat as substitutes.
  • Competitive rivalry: The online education market is highly competitive, with players vying for market share and student attention.

4. Recommendations

  1. Phased International Expansion: SNA Educa should adopt a phased approach to international expansion, starting with a pilot launch in one or two carefully selected markets. This allows for testing the market, refining the business model, and minimizing risk.
  2. Strategic Partnerships: SNA Educa should leverage strategic partnerships with local educational institutions, government agencies, and technology companies in target markets. This will provide access to resources, expertise, and local market knowledge.
  3. Targeted Market Segmentation: SNA Educa should focus on specific market segments with high demand for their courses, such as professionals seeking upskilling, students seeking career advancement, and businesses looking to train their employees.
  4. Localized Content and Marketing: SNA Educa should adapt its course content and marketing materials to the specific needs and preferences of target markets. This includes translating materials, incorporating local cultural references, and utilizing local marketing channels.
  5. Investment in Technology and Analytics: SNA Educa should continue to invest in its technology platform and analytics capabilities to personalize the learning experience, track student progress, and optimize course offerings.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies: SNA Educa?s core competencies lie in technology, content development, and online learning platform management. These competencies are transferable to international markets.
  • External customers: The global demand for online education is growing, particularly in emerging markets. Targeting specific market segments with high demand will ensure a successful launch.
  • Competitors: While competition is fierce, SNA Educa can differentiate itself through its focus on technology and analytics, its strong brand reputation, and its commitment to providing high-quality education.
  • Attractiveness: The international online education market offers significant growth potential, with a large target audience and high demand for digital skills.

6. Conclusion

By adopting a strategic growth plan focused on international expansion through strategic partnerships and targeted market segmentation, SNA Educa can leverage its strengths and capitalize on the global demand for online education. This approach will enable the company to achieve sustainable growth and become a leading player in the global online education market.

7. Discussion

Alternative strategies include:

  • Organic growth: Focusing on expanding within existing markets through marketing and product development. This approach is less risky but may limit growth potential.
  • Acquisition: Acquiring existing online education platforms in target markets. This approach is faster but requires significant capital investment and integration challenges.

Key risks include:

  • Market entry barriers: Navigating regulations, cultural differences, and competition in new markets.
  • Partner selection: Finding reliable and trustworthy partners who can support the company?s growth.
  • Resource allocation: Balancing investment in international expansion with ongoing operations in existing markets.

8. Next Steps

  1. Market research: Conduct in-depth market research in potential target markets to identify opportunities and challenges.
  2. Partner selection: Identify and evaluate potential partners who can provide access to resources, expertise, and local market knowledge.
  3. Pilot launch: Launch a pilot program in one or two target markets to test the business model and refine the strategy.
  4. Resource allocation: Allocate resources to support international expansion, including technology, marketing, and talent acquisition.
  5. Monitoring and evaluation: Continuously monitor and evaluate the progress of international expansion and make adjustments as needed.

By following these steps, SNA Educa can successfully navigate the complexities of international expansion and achieve sustainable growth in the global online education market.

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Case Description

SNA Educa (previously known as Codesser) is a non-profit organization which was created by the National Association of Farmers (Sociedad Nacional de Agricultura, SNA) in Chile. Its mission included improving the living conditions of people associated with rural activities. One way of doing this was by offering agricultural and technical education to low-income students in rural areas. SNA Educa currently manages around 20 high schools in different regions of Chile. In the early 2000, SNA Educa made a major decision: to buy a school to provide primary and secondary scientific humanistic education, a field in which the organization had neither previous educational experience nor managing skills. Even though the investment decision had proven financially convenient, several issues cast some doubts about the suitability of the decision: inadequate mission fit, low educational test scores of the school, the troublesome political environment related to school reform, child abuse in the school, , among others. After ten years of the acquisition, the board is now debating whether it should reverse its previous decision and sell the school.

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