INTRODUCTION OF BYJU’S

BYJU’S, an educational technology was developed by Think and learn pvt. ltd which
was established by BYJU RAVEENDRAN . In 2011 with the help of his students he
founded an educational company that offered online video based learning program for K-
12 as well as competitive exams .In 2015 the firm launched BYJU’S THE LEARNING
APP which was downloaded by around 2 million people within first three months after
its launch .In 2019 it was the most valued edtech company at $5.4 billion .It has also
acquired Indian cricket team’s jersey rights . It follows a business model called as
premium business model, basically this model is a price making strategy which offers
products for free with extra charge of availing more features of it. Byju has dignified
the education. It has become the most loved and preferable education app for students
in various age groups. This app offers highly effective, adaptive and engaging learning
programs . The annual customer retention rate is 90 percent. The secret behind their
success is their strong business model which was enhanced according to changing trends.
It utilizes 20 percent of its revenue for marketing progression which gives the company
an adequate ROI.
Name of the business- BYJU’S

Products/Services of BYJU’S-

 The main product of byju’s is its mobile based learning app.

 It provides educational content mainly to students from class 1 to 12 ,it also
prepares students for national and international competitive examinations such as
NEET,CAT,IIT-JRE,GMAT.
 The students who purchase these products are offered a Lenovo tab with a
memory card which provides offline services to students.
 In addition to this Byju’s offers its after sales service wherein the students are
provided with mentors to guide them throughout the completion of the course.

Owner of BYJU’S - Byju Raveendran . A teacher by choice and an entrepreneur by

chance.

Name of the person interviewed -MR MANIK PAL SINGH

Position -Business Development Associate (BDA)

Group’s Connection - Group member Manpreet kaur’s friend

The company uses various inputs to produce its products/services some of its inputs
include –

 The videos that are made

 The teachers in every video
 The memory card with all the videos stored in it
 The content development team, sales team etc.
 Technology used and upgradation
 The offices wherein all the operations are carried out

In this context the memory card which is considered to be as variable input has been
modified lately i.e. before the company provided different memory cards for different
subjects in its course packet but now it has reduced its variable input and this was
 done in a short span of time within a month. The same thing can be used for
technology as the company has to keep itself constantly upgraded with that.

The teachers ,content development team, the videos will be considered as fixed inputs
as videos are the base of any edtech company and it cannot change that, the teachers
are present in every video to make the students understand the concept and ofcourse
the content development team, the sales team which are responsible for development of
videos and its sales will be considered as fixed inputs for the company.

Apart from all the revenues that a company generates there are also expenses that a
company has to go through to meet its day to day operations. For now BYJU’S is
making a lot of expense in advertisement and promotion but that cannot be classified as
its monthly expense. Specifically the company’s largest monthly expense is the salary
expense and specifically on its business development associates

No of BDA’S currently = 5500(approx)

Base salary =54000

Expense per month =54000*5500

Total expense =297,000,00

Total Employees of the organization reaches to about 6000-8000 in number

If the prices of Byju’s product increases by 10% then there will less than 10% change
in quantity demanded , thus we can say that the prices of Byju’s product are Inelastic,
as the prices of product considered to be Inelastic only when the responsiveness of
percentage decrease in quantity demanded is less than the percentage increase in prices of
the product.

For Example –
Case - 1
Suppose Byju’s charges rupees 25000 per head for providing CAT coaching classes and
other course material.
Number of Enrolment at this prices = 100
Total Revenue = Price * Quantity
= 25000*100
=Rs. 25,00,000
Case – 2
10% Increase in prices, prices becomes Rs. 27500
Number of Enrolment = 95
Total Revenue = 27500*95
=Rs. 26,12,000

As we see can above, prices are gone up by 10% but the quantity demanded is fallen
by 5% ,which affect total revenue as we can see it is increased by Rs. 1,12,000 or we
can say increase in prices of Byju’s product will result in increase in total revenue by
0.045%.

For now the biggest competitor of BYJU’S is EXTRAMARKS. Both the companies
have its own advantages and disadvantages regarding the products and services that they
provide .The difference between the two companies can be classified in the following
table

Byju’s Extramarks
 Higher quality content  Low quality content

 Animation videos with interactive teacher  Fully animated videos

 Provides offline education in some institutions’  Does not provide offline education
in India
 4000 employees  3500 employees

 2000 million as in the month of april  25 millions per month revenue

 Byju’s is featuring Shahrukh Khan in their  No celebrity brand ambassador so

advertisement far.
BYJU’s can be described as monopolistic competition -

 There are large no of firms but not as large as in perfect competition

 Byju’s follows its independent price policy
 The price-output policy of Byju’s is not affected by its competitors
 There is no barriers to entry and exist
 The products of byjus differs from its competitors but there is not much difference
 Byju’s tries to promote its products through different advertisement expenses
 There are close substitutes to byju’s products buyers do not have knowledge of all
of them
 In order to sell its products prices can also be reduced

What Does Byju’s Do Well ?

 Byju’s provide much higher quality and more effective content than the
competitors.
 Byju’s provide rich and engaging learning programs.
 Every student can choose their favourite teacher through the video-based learning.
 The learning application make use of original content.
 They use interactive simulations and animations to engage.

What does Byju’s not do well ?

 Their offering is really expensive. Parents have to purchase the entire year’s
syllabus and they don’t have any other options.
 It takes a lot of time for them to solve any of their doubts.
 Their after sales services are bad.

How Byju’s and Extramarks are similar ?

 After sales support of Byju’s and ExtraMarks is really poor.
 Byju’s and ExtraMarks offerings are really expensive . Students have to purchase
the entire years syllabus and they don’t have any other options.
 They both provide much higher quality content and are more effective.
 How Byju’s and Extramarks are different?

Byju’s Extramarks
1. Provide videos with an interactive teacher. 1. Provide fully animated videos.
 24x7 chat 2. Not available.
3. They provide more courses. 3. They provide less courses.
4. Product approach to learning. 4. Teaching approach digitised.

LEARNINGS

From this project we learnt that for any business to run effectively and efficiently and
for all the decions that a manager makes there are certain factors that have to be mind
such as

 The inputs that are needed for the production of products and services
 The no of firms in the market in which the business is competing
 The demand and supply factors that directly effect the business
 To produce goods and services better than that of its competition
 The pricing and output decisions of a business can effect it if the customers are
price sensitive
 What type of products a company is producing how is it producing them and for
whom the production is being done