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

1. Preschool to high school: Premium service, Digital textbook
2. University Students: Sharing education sources
3. After graduation: Differentiation for specific service

Macro-Environment Analysis

- Major Players of the market

1. Telecommunication Provider: partnership with major companies in education market
2. ICT Companies: providing e-learning platforms and solutions
3. 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

1. Preschool to high school
2. University Students
3. After graduation

Customer Analysis: University Students 

- Top 5 key interests for University Students

1. Money: tuition fees, living expenses
2. Job:  job-seeking activities
3. Career: future career plan
4. Grades: managing school credits
5. 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