Harvard Case - Shikshaa Public School: Options for Growth
"Shikshaa Public School: Options for Growth" Harvard business case study is written by Atul Arun Pathak, Madumitha R. It deals with the challenges in the field of Strategy. The case study is 12 page(s) long and it was first published on : May 28, 2021
At Fern Fort University, we recommend that Shikshaa Public School pursue a multi-pronged growth strategy focused on digital transformation, strategic partnerships, and expansion into new markets. This strategy will leverage Shikshaa's existing core competencies in quality education and strong community engagement while capitalizing on emerging opportunities in the Indian education landscape.
2. Background
Shikshaa Public School is a successful private school in Bangalore, India, known for its high academic standards and strong emphasis on extracurricular activities. The school faces growing competition from other private schools and the rise of online learning platforms. The case study centers around the school's Managing Director, Mr. Kumar, who is seeking to expand the school's reach and maintain its competitive advantage in a rapidly evolving education market.
3. Analysis of the Case Study
SWOT Analysis:
- Strengths: Strong brand reputation, experienced faculty, strong community ties, robust extracurricular program, innovative teaching methods.
- Weaknesses: Limited online presence, lack of a comprehensive digital strategy, dependence on traditional teaching methods, limited resources for expansion.
- Opportunities: Growing demand for quality education, increasing internet penetration, government initiatives for digital education, potential for international partnerships.
- Threats: Increasing competition from other private schools, emergence of online learning platforms, economic uncertainty, changing demographics.
Porter's Five Forces Analysis:
- Threat of New Entrants: High - The education sector is relatively easy to enter, with many new schools emerging.
- Bargaining Power of Buyers: Moderate - Parents have choices and can compare schools based on fees, curriculum, and reputation.
- Threat of Substitutes: High - Online learning platforms and alternative education models are gaining popularity.
- Bargaining Power of Suppliers: Low - Teachers and other staff are readily available in the market.
- Rivalry among Existing Competitors: High - The private school sector is highly competitive, with schools vying for students and resources.
Value Chain Analysis:
Shikshaa's value chain can be analyzed to identify areas for improvement:
- Inbound Logistics: Streamlining procurement processes and leveraging technology for inventory management.
- Operations: Implementing digital learning tools and enhancing teacher training.
- Outbound Logistics: Improving communication and marketing strategies for reaching potential students.
- Marketing and Sales: Developing a comprehensive digital marketing strategy and leveraging social media platforms.
- Service: Enhancing student support services and providing personalized learning experiences.
Business Model Innovation:
Shikshaa can explore business model innovation by:
- Developing a hybrid learning model: Combining online and offline learning to cater to diverse student needs.
- Offering specialized programs: Focusing on niche areas like STEM education, arts, or sports.
- Partnering with international schools: Expanding reach and offering global learning opportunities.
- Leveraging technology for personalized learning: Utilizing AI and analytics to tailor education to individual student needs.
4. Recommendations
1. Digital Transformation:
- Develop a comprehensive digital strategy: This should include a website, mobile app, online learning platform, and social media presence.
- Invest in technology and infrastructure: Upgrade IT systems, provide teachers with training on digital tools, and ensure access to high-speed internet.
- Implement a hybrid learning model: Offer a mix of online and offline learning to cater to diverse student needs and enhance flexibility.
- Leverage data analytics for personalized learning: Track student progress, identify areas for improvement, and tailor learning experiences.
2. Strategic Partnerships:
- Collaborate with international schools: Exchange programs, joint research projects, and curriculum development can enhance the school's global reach and reputation.
- Partner with EdTech companies: Integrate innovative learning tools and platforms into the curriculum.
- Establish partnerships with local businesses: Provide internships, mentorship programs, and career guidance to students.
3. Expansion into New Markets:
- Explore opportunities in emerging markets: The growing middle class in India and other developing countries presents a significant market for quality education.
- Consider franchising or setting up satellite campuses: This can help expand reach without significant capital investment.
- Offer online learning programs: This can cater to students in remote areas and expand access to quality education.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Shikshaa's existing strengths in quality education, community engagement, and innovation.
- External customers and internal clients: The recommendations address the needs of students, parents, teachers, and the broader community.
- Competitors: The recommendations aim to differentiate Shikshaa from competitors by leveraging technology, building strategic partnerships, and expanding into new markets.
- Attractiveness: The recommendations are expected to be financially viable, considering the growing demand for quality education and the potential for cost savings through digitalization.
Assumptions:
- The Indian education market will continue to grow, driven by increasing demand for quality education.
- Technology will play an increasingly important role in education, enabling personalized learning and access to global resources.
- Shikshaa's brand reputation and strong community ties will continue to be valuable assets.
6. Conclusion
By embracing digital transformation, forging strategic partnerships, and exploring new markets, Shikshaa Public School can solidify its position as a leading educational institution in India. This multi-pronged growth strategy will enable the school to adapt to the evolving education landscape, meet the diverse needs of students, and achieve sustainable growth.
7. Discussion
Alternatives:
- Focusing solely on traditional education: This would limit the school's ability to adapt to changing market dynamics and compete with innovative schools and online platforms.
- Merging with another school: This could provide access to resources and expertise but may compromise the school's identity and culture.
Risks:
- Technology adoption challenges: Implementing digital tools effectively requires significant investment, training, and change management.
- Competition from online platforms: Online learning platforms are becoming increasingly popular, posing a threat to traditional schools.
- Economic uncertainty: Economic downturns could impact student enrollment and funding.
Key Assumptions:
- The Indian education market will continue to grow.
- Technology will play a significant role in education.
- Shikshaa's brand reputation and community ties will remain strong.
8. Next Steps
- Develop a detailed strategic plan: This should outline the specific goals, strategies, and timelines for each recommendation.
- Secure funding: Invest in technology, infrastructure, and staff training.
- Implement digital transformation initiatives: Develop a website, mobile app, online learning platform, and social media presence.
- Establish strategic partnerships: Identify potential partners in India and abroad.
- Explore new markets: Conduct feasibility studies and develop market entry strategies.
- Monitor progress and adapt: Regularly evaluate the effectiveness of the growth strategy and make adjustments as needed.
By taking these steps, Shikshaa Public School can position itself for continued success in the dynamic Indian education landscape.
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Case Description
In March 2020, the director of Shikshaa Public School (SPS), a privately owned school with 785 students, located in Chennai, India, and his wife and co-founder were reviewing the school's performance and deciding its strategy going forward. The Indian education sector was highly regulated and competitive. Government schools, government-aided schools, and private schools all competed for new student enrolments to obtain a portion of the US$101.1 billion (in fiscal year 2019) Indian education sector. Having recently taken out a bank loan to construct a school building that increased SPS's capacity to 3,000 students, the cofounders were considering ways to increase SPS's revenue and profitability. The options considered were (1) more effective marketing to attract an increased enrolment of new students; (2) relocation of SPS to an upmarket location, where families had the potential to pay higher fees; and (3) acquisition of another school to expand rapidly and leverage the SPS brand.
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