As in india internet came in india, similarly internet user was big in india. Because of this internet consumer also increase. Due to this, more than half the sector in india is the education sector, due to which many startups were born in the edtech sector.
And this is the specialty of all the edtech companies so that if any one needs demand in the market, it makes them all fullfield.
One of them is edtech company, that is upGrad. which is it provides higher education for online student and even for professional who is looking for job. Also empowers those who can give their ultimate potential.
Today upGrad has a student of more than 20,00,000 and as on date it has reached $1.2 billion valuation, this company has become the third unicorn in edtech sector of india.
How upGrad scaled itself to such a huge level, what is their business model, what is their strategy and what are the business challenges they faced, all this we will cover on this post today.
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The upGrad was started by these four founders, whose name is ronnie screwvala, mayank kumar, phalgun kompalli, and ravijot chugh makeupGrad in 2015.
upGrad basically provides related verses of data, technology and management courses with higher quality education for which upGrad has partnership with very big indian educational institutions.
Such as Cambridge Judge Business School, Bits Pilani, Iiit-b and more. That's why upGrad is able to provide better and high quality education for its students & professional that too in low price.
If we talk about upGrad business challenge what he faced are look, doing business means challenge as most come in your life. Similarly, in this company too many challenges have been faced.
But here are the two main signature challenges that were stopping this company going forward I'll talk about it in detail.
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The 1st and biggest challenge here was people who were they used to spend money on online education but their psychology and thinking was there will be such a small course, no one can become a big man by doing it, just this type of thinking was people have looking around online courses.
Company Details
| City: | Mumbai |
|---|---|
| Founders: | Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli, and Ravijot Chugh |
| Founded: | 2015 |
| Industries: | EdTech,Education |
| Number of employees: | 1001-5000 |
| Revenue: | $80 Mn |
| Official Website: | upGrad.com |
Now here the upGrad had to completely change the perception, where there is my product experience, user experience, everything, and most important customer success story.
And upGrad second challenge was whatever courses he had made related to data, technology, management where for the student, for the working professional or for the job seeker.
Then ultimately the pricing goal of upGrad was such that the educational universities and big institutions give it, upGrad provide better and quality education will giveing online.
Where you can take education anytimes and anywheres in comfortably. Along with this, there is a very cool feature here that you can access 24/7 anytime.
But the big mess here was that upGrad keep the entire pricing setup at half price from offline education, because of which the student liked it. But the second problem came here, which is their online competition. Used to be why online companies used to competi these people next to them these people used to keep premium.
Which is people ultimately found it a little difficult to adjust whatever the value position of their product is and that means how justify whether their product will be able to sell in the market at such a price or not. It means what pricing would be right for a starting company.
So friend these two challenges the company had to face in markets. Now we will know and what is the business model of upGrad company.
upGrad Business Model
upGrad Company is one that focus in B2C Model. Here the company directly sells its product to the customer.
Along with this, he also pays attention to marketing and if someone wants to sell or wants to do his business with upGrad, then they can partnership with upGrad just by selling his product. Therefore, you will get some commission from the upGrad.
But here the entire focus of the upgrad is on the b2c(business-to-consumer) model.
Now friend we will know here what is the business strategy of upGrad.
upGrad Business Strategy
Today upgrad has over 20,00,000+ customers in their platform. Meaning more than 20,00,000 students have enrolled on their course. So today we will know what is the business strategy of upgrad and how was their business strategy in the beginning and whether something has changed or not.
Today I will tell you here 3 upgrad strategy that we can learn from this business case study and we can implement in our business.
1. Potential Customer To Customer
That is the customer who has the ability to become your customer, some customer has to make his customer. There are many such ways where the customer can do it once, one of them comes is offline event. Or do seminars and micro marketing then these are some ways where you can get initial customers.
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So the founders says that in initial time period upgrad, also implemented this same thing in their business. They first did offline events by going to colleges, the students know about their products and have done many other things where they get a lot of customers.
But it is said that those who try never fail, they did not stop even there, they wanted more and could acquire more customers. There comes another strategy that we'll cover now.
2. Freemium Strategy
What the company does here is that whatever event is organized from there. They want enrollment, then they told their students and customers. If you like our content, then only you give us money or else we can't charges single ₹1. We give sample content in which if you like it only then you can pay or don't give ₹1.
Along with this, the upGrad make a condition where they can share their stories to others. With this upGrad first challenge was also completed.
And they also got the story here, due to which more customers could known clearly about upGrad & enrolled to their course very fast.
You think it's a small thing psychology says if you watch something over and over and read about it well then you will be attracted to that thing very quickly.
With this upGrad also does this by asking its student and professional to make a short video in which a short definition is given about the course he/she is going to take also why choose the upGrad platform?
Because of this, it doesn't take long for the upGrad to bring next 1,000 customers to their platform. So you see, the upGrad works like this.
Where in the initial upGrad was think about 50 and 100 customers, now company will get more than thousand plus customers and along with this upGrad also got free promotion. Because company promoted the video the videos after this result.
3. Pricing Strategy
Here pricing plays a big major role for any business when there is no company. If you don't have the right pricing inside your product, then people will think it is highly overvalued.
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And or else the customer will think that the price of this product is very low because of this the company will not be good. In the initial days, you will have to face both the perceptions.
upGrad kept it at a lower price than offline institution to survive on the market. Along with this, by partnering with big institutions, he took his company to the next level for a long time.
Where service like mentor session, doubt and many more such features of great provided to its customer because of this, he countered the offline institution and is ruling the market in today's date.
So, along with this experts say in the upcoming days that the upGrad will show the next level performance on the market.
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