MANAGERIAL

ECONOMICS
COURSE PROJECT

Prepared by

ATUL KUMAR EMBA2227

AMBRISH NIGAM EMBA2214
HIMANSHU TOMAR EMBA2228
VINEET KUMAR EMBA2221
PRAFFUL NAUTIYAL EMBA2239
 Table of Contents

 Objective of the Study

 Findings

 Introduction Of Byju’s

 Products/Services of BYJU’S-

 Market share & Competitors

 Consumer Profile

 Analysis

 Case1

 Case2

 Byju’s Vs rest of competitors

 What Does Byju’s Do Well ?

 What does Byju’s not do well ?

 Government role & conclusion

 Study Objective

From this project we are going to understand that for any business to run effectively and
efficiently and for all the decisions that a manager makes there are certain factors that have
to be in mind mentioned below

 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 affect 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

Findings –

 Type of Byju’s market

 Effect of price increase on Demand
 Competition and effect of competition

Company Overview

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.

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 it’s after sales service wherein the students are
provided with mentors to guide them throughout the completion of the course.

Market share & Competitors

Byju’s by far is most visited and adopted educational company in India

Nearest Competitors are Unacademy, Vedantu

 Consumer Profile-

In current education scenario parents take the best decision for their children and
always had, so parents serve as customers of Byju’s, but the underground truth is actual
consumers are the students & teenagers that are using platform to study and learn.
Hence its primary target audience is the parents who are willing to imbibe quality
education to their children. Byjus constantly interact with parents with dashboard
reflecting performance along with one-on-one monthly mentoring sessions where
mentors interact with students and parents. These sessions aim to track and analyse the
child’s growth and give some recommendations to improve the child’s performance.

Case Analysis

Name of the person interviewed -Mr. Ambrish Nigam

Position – Head Operations.

Group’s Connection - Group member

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 of course 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 x 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 group of rest of competitors. Both the
companies have its own advantages and disadvantages regarding the products and services
that they provide.
Qualitative differences between Byju and competitiors

Byju’s Vs Rest of competitors

Byju’s-

 First mover advantage and brand image.

 Higher quality content
 Animation videos in interactive environment with teacher helps student adopt
subtle techniques more comprehensively
 Provides offline education in reputed institutions’ in India
 Higher customer retention due to quality and easily comprehendible content
 Byju’s is featuring Bollywood celebrities in their advertisement

Competitors-

 Low quality content

 Fully animated videos
 Does not provide offline education
  No celebrity brand ambassador so 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 exit
 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 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.

Government Role & conclusion

Users enrolling for online education in India touched 9.6 million users by 2021, from 1.6
million users in 2016. Point estimates shows that online market will grow massively
worldwide, presumably more than 243 billion U.S. dollars by 2022.

COVID-19 pandemic and lockdowns had shaked education system in India. With the closure
of schools for months and the loss in the business of school owners, people now are inclined
more towards online platforms of learning. With the emergence of a new set of rules formed
by the Indian government in 2020

NEP- New education Policy

Recently the ministry of human resource development has been renamed the ministry of
education and this education ministry has released a new education policy with a vision to
reshape the education system of India. They aim to transform the education standards of
India by the end of 2040.

Now with new set of rules emerged and formed by Government in 2020 online and digital
ways of learning are going to be new normal

Targets to be taken by government-At least 50% of the Indian population resides in rural
areas and is deprived of basic needs like electricity, water, shelter. If we want to educate
that fraction of society we need to first fulfil their basic needs. Government need to take
actions to provide them proper shelter and 24 hours availability of electricity, only the we
can be assured that guidelines of NEP will have any desired effect on that sector of our