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Surya Tutoring:

Evaluating a growth
equity deal in India
Question:
What competition was Surya facing, both at the
time and going forward? Could it pre-empt
future entry?

Group 4

Competition (During)
External

Other Institutes (Bansal, Resonance, Career Point, Mahesh Tutorials)


Private / Boarding Schools
Individual Teacher
Indirect Competition
40% CBSE weightage

Internal
Teachers of Surya Institute
70 / 280 IITians
Ability to replicate business model of Surya

Competition (Going Forward)


Self
Low barriers to entry
Increased threat of new competitors (direct)
Indirect Competitors (SATs, EILTs)
Lucrative Industry

1,50,000 aspirants (and growing)


Technology
Teleconferencing
Remote Video Classes
Equity broker and financial services groups

Pre-empting future entry


Expansion into major cities (Mumbai, Delhi, Bengaluru,
Chennai)
Stock Options to faculty
Technology
Management/Hierarchy

Pre-empting future entry


Besides their efforts, they
will not be able to thwart
competition fully as all 5
forces (Porters) are low.
Hence, the industry is
very competitive.

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