Korea Market Analysis
& Opportunity for Repetico
Agenda
- Introduction of Korean education market
- General information Korean e-learning market
- Macro-environment analysis
- Competitor Analysis
- Customer analysis
- Conclusion
Introduction of Korean education market
Introduction of Korean education market
Highly competitive society leads more investment in education.
Introduction of Korean education market
According to the report from Euromonitor
- South Korea is suffering from high level of household debts (even higher than that of US before 2008 crisis
- Because of household debts, Koreans are reducing their consumption except...
- Education will likely experience strong growth in consumer spending over the 2014-2030 periods.
General information about Korean e-learning market
8 countries leading the way in online education - ICEF
- United States
- India
- China
- South Korea
- Malaysia
- United Kingdom
- Australia
- South Africa
General information about Korean e-learning market
Sales Volume of Korean e-learning market
unit: million euro
Macro-Environment Analysis
- Macro-economic Environment: prolonged economic downturn; reduction in consumer spending
- Socio-Cultural Environment: hierarchical social structure rooted from Confucianism & highly competitive social atmosphere; extremely strong emphasis on education
- Legal & Political Environment: Business-friendly environment, inefficient policies failing to support startups
- Technological Environment: strong internet and mobile infrastructure
Macro-Environment Analysis
- Trends of Major Segments
- Preschool to high school: Premium service, Digital textbook
- University Students: Sharing education sources
- After graduation: Differentiation for specific service
Macro-Environment Analysis
- Major Players of the market
- Telecommunication Provider: partnership with major companies in education market
- ICT Companies: providing e-learning platforms and solutions
- Startups: seeking for niche for avoiding competitions with big players
Competitor Analysis: Characteristic
WHAT to study
HOW to study
>
> Major players in Korean e-learning market grew rapidly by providing online lectures.
> The number of services providing learning methodologies is very limited.
Competitor Analysis: Major Areas of Contents
Foreign language
University Entrance Exam
Professional Certificate
/License
Government Job Exam
> So many players, including behemoths and startups, are engaged in foreign language and university entrance exam.
> Professional certificate and government job exams areas are well matched with Repetico's current service.
Self-Development
Digital books
Creativity
Management
Competitor Analysis: Startups
> Except the online lectures serviced by major hakwons (private tutoring companies), two areas in the red box is far from "smart learning".
> Methodologies for those two stick to old-fashioned way, there is much room for improvement.
Out of 75 startups listed in Rocketpuch (startup wikipedia)
Competitor Analysis: in the two areas
Who are major players? Hakwons and Publishers
What are they providing? Textbooks and Lectures including knowhows
How are they providing? Offline stores and hakwons + Online channels
What are the contents about?
Law accounts for major portion. Unique knowledge for specific fileds.
How do the students study? Memorization through old-fashioned way.
Competitor Analysis: Similar Services
From iTunes Application Chart in Education Category
> There is only one service which adopts similar function of Repetico in top 20.
> The concept of using flashcards for memorizing is not that popular in Korea.
> Several developers are trying to launch foreign-language-study application targeting preschoolers.
Customer Analysis: Segmentation
- Segmentation based on Age
- Preschool to high school
- University Students
- After graduation
Customer Analysis: University Students
- Top 5 key interests for University Students
- Money: tuition fees, living expenses
- Job: job-seeking activities
- Career: future career plan
- Grades: managing school credits
- Relationship
surveyed in 2013
Customer Analysis: University Students
Majority of university students prefer government jobs and professional jobs because of job security and work/life balance.
Customer Analysis: University Students
130,000 students as of 2009 - 300,000 students as of 2013
competition rate 655.2:1
Customer Analysis: What do they study?
9th level government job
: Korean, English, Korean History, Administrative Science, and Administrative Law
7th level government job
: Korean, English, Korean History, Administrative Science, Administrative Law, Economics, and Constitutional Law
> Memorizing is the key for success in these exams.
Customer Analysis: How do they study?
> Spend 10 to 13 hours for study, mostly memorizing.
Taking lectures
Study group
Self-study
Conclusion: SWOT
> Localization and Partnership are the keys for the success.
Strength
Weakness
Oppotunity
Threat
First mover advantage
Technological lead
"German" premium
Growth of e-learning market in Korea
Advanced infrastructure for e-learning
Need for better methodology
Great supplier power
Threats from copycat services
Government regulation
Lack of first-hand experience
Unfamiliar concept of service
Limited bargaining power
deck
By Yoon Seok Chae
