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Relating case Educomp with the reading The Core Competence of the Corporation.

1) The critical task for management is to create products that customers need but have not yet
imagined.

As per case people were ready to spend more on education. ESL had the product which gives enriched
experience to learning with help of digital learning which was totally new revolution in the field of
education.

2) During business expansion it is important to focus on core competency.

The time when government proposed to curb outsourcing of work related to digital content, ESL came
up with proposal with options: 1) Rural market penetration 2) Virtual learning solutions 3) R&D
investments in innovative products. All these options are viable based on their core competency in the
sector. ESL invested in setting up and maintaining computer labs in private schools under a build own
operate transfer (BOOT) model in government schools under a subcontract awarded by government.

3) Portfolio of competency

ELS has the product which targets different age group from 3 years to 25 years. It provided education
platform to preschool, K-12, Higher education, Vocational training and test preparation. Throughout the
evolution various services and products are launched such as e-Campus, PlanetVidya.com, e-learning
platforms with collaboration of top universities. Forming joint venture with Zeebo.Inc to launch the first
wireless education platform for children.

4) Core competencies are collective learning relating diverse skills and integration of multiple streams
of technologies.

Technologies businesses such as AsknLearn, AuthorGen, Learning.com, PerpleLeap, Savvica, Learning


hour were well integrated with the objective of the ELS providing digital learning experience to the
students of various age group by increasing reach to diverse market. It also ensured increased revenue
and profits.

5) Diversified portfolio of business belies a few shared core competencies.

Products and services such as smart class, Edureach, K-12 Schools, preschool, Little Millennium model,
Euro books are diversified. Each was based on core competency of ELS. All these products and services
offered are core products for ELS.

6) Core competency provides potential access to wide variety of markets.

Market was segmented to target population belonging to Preschool, K-12, Higher education, Vocational
training, Test preparation. As per exhibit-2 Revenues are increasing for each segment and market ha
CAGR of 14%.

7) A dominant position in core products allows a company to shape the evolution of applications and
end markets.
Due to dominant position they had option to penetrate to rural India with virtual learning. The company
provided all elements required for its implementation such as hardware, library digital content, training
to teachers and periodic support for smooth functioning of the program.

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