This case tests the candidate's ability to structure a diversification strategy, analyze multiple segments using financial metrics, and evaluate acquisition targets through profitability and payback period analysis. The case progresses logically from high-level market assessment to specific segment selection to detailed acquisition evaluation, requiring both quantitative reasoning and strategic judgment.
Your client is EduCo, one of the oldest and the largest corporate training and learning service provider in the US. Over the last two years, EduCo has been facing increasing competition from new and upcoming digital learning providers and MOOC start-ups.
The CEO believes that EduCo is operating in a very dynamic industry and needs to diversify and adapt to the changes for continued survival. The CEO has asked your firm to come up with a diversification strategy to ensure the firm maintains its market share in this evolving industry. How would you approach this?