Comparison of EdTech Industry in the United States of America, India and Kenya

Abstract

Education technology or the EdTech industry is one of the most promising industries right now. Demands for interactive and technology-enabled learning makes the whole learning process more accessible and has helped demand go uphill. Even after creating buzz around circles, there is one major problem these EdTech players face - Global expansion (Vora, 2013).

Most EdTech companies are start-ups that cannot afford to lose investor’s money on failed attempts of market expansion. So, either that market development opportunity ends up being unutilized or a failed attempt often. The nature of the EdTech industry and underlying education mechanism needed a close review (Tilak, 2015). Components that affect the EdTech industry needed to be identified and required an understanding of how they behave and impact these ventures. The best way to do so was to study different EdTech markets, and for better differentiation, Developed (Oketch, M., & Ngware, 2010), Emerging, and Underdeveloped economies were picked so there is no similarity among the three markets which are being studied.

The research aimed to understand the complex EdTech market at a macro level mainly through market potential, competition, and how diverse these markets are from each other. It is found that local players majorly rule the domestic EdTech space, and more prominent industry players are still to make land sliding global expansion (Thomas, D. A., & Nedeva, 2018).

The case study method was used to bring the relevant details related to the education sector in each of the markets. The market analysis was primarily done through three tools – SWOT Analysis, PESTEL Analysis, and Porter’s five force model Analysis. The analysis of each of the markets gave the following perspectives.

There are no barriers to entry of firms in the EdTech space, but EdTech is a complex industry as there needs to be the development of educational content keeping in mind consumer choices of that particular region, significant marketing costs have to be incurred on building awareness. This sense of customization region-wise has allowed local companies to dominate the EdTech space of their home country. The introduction of internet-based mobile applications opened a lot of opportunities in education technology (Miglani, N., & Burch, 2019). There were a lot of players entered in the tech-enabled education support services. One such tech-enabled service is the online degree. Online degree is the new much sought-after product.

The public-private partnership is critical for opening up new avenues in the EdTech sector, especially in developing and underdeveloped markets. Kenya and India have demonstrated their potential through their initiatives.

The use of mother tongue in developing educational content has been one of the significant reasons for the tremendous growth of EdTech players. EdTech companies have to look for content that reaches all and benefits all. Societies in the developing and underdeveloped economies show a higher level of the digital divide, companies have looked beyond English as a medium of learning to enable the education process (Ramiel, 2021).

Education is a sector that is linked with the growth of the economy. Education is the only action when spread across the population leads to the sustainable livelihood of the societies. Nations realise this fact and invest heavily in this sector. The countries that have invested in this sector have become well-developed nations. The growing and underdeveloped countries are lagging in the education of their citizens. The brick and mortar model of education delivery though effective but require huge investment and take time to bring the infrastructure. Here come the education technology-enabled service providers. These service providers could offer education services with little investment as they invest in new technology which complements the brick and mortar model of delivery. Hence there is huge traction towards the adoption of education technology-enabled teaching and learning process (Ciaschini, M., Socci, C., & Toffoli, 2016).

EdTech is a booming market that is expected to grow tremendously across the globe. The industry carries the expectations of several prominent investors and depends on how the EdTech sector evolves from here on. EdTech holds the key for education in underdeveloped and developing economies where education infrastructure is not robust and resources are scarce. The research paper tries to compare and contrast the education markets of developed, developing and underdeveloped markets. The suggestions from the paper could help in strategies for each of the markets.