BYJU'S: The Blue Ocean Strategy

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 US$1.43 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?