This document provides an overview of Coursera's business model for offering massive open online courses (MOOCs). It discusses Coursera's value proposition including offering prestigious courses from elite universities, verified certificates, recognition of credits, and career advancement services. Competitor analysis shows Coursera has the most students and courses compared to other MOOC providers. Coursera's customer selection targets individuals seeking new learning opportunities and career advancement as well as companies interested in corporate training. Coursera captures value through premium services, licensing, career services, merchandise, and affiliate programs. Strategic controls include establishing exclusive university partnerships, securing assessments, and exploring new revenue streams like corporate learning and a low-cost learning tablet.

1. MT5016
BUSINESS MODELS FOR HI-TECH PRODUCTS
Roberto De Joya Jr. A0118989E
Ryan Michael Gelig A0098535R
Zhou Xintao A0098599X
Liang Liang A0098464N
Jonathan Castillo A0098438M
Wong Chee Yeow A0104437M

2. INTRODUCTION
SCOPE OF ACTIVITES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

3. CHANGING TREND IN HIGHER EDUCATION
Rising Costs
Perception of shrinking financial returns
of education
Unequal access to employers
Unequal access to education

4. RISING COSTS OF HIGHER EDUCATION
http://www.bloomberg.com/news/2013-08-26/college-costs-surge-500-in-u-s-since-1985-chart-of-the-day.html
http://money.cnn.com/2011/06/13/news/economy/college_tuition_middle_class/

5. Free and paid (for premium services)
educational courses offered online and
open to anyone
The concept started from
University of Phoenix’s initiative
in 1989
1st MOOC experiment launched in
2008 by Stephen Downes and George
Siemens, “Connectivism and
Connective Knowledge”
Current MOOC providers:
Coursera, Udacity, edX,
KhanX
New York Times
declared 2012 as
the "Year of the
MOOC"
MASSIVE OPEN ONLINE COURSES

6. MASSIVE OPEN ONLINE COURSES
http://elearninginfographics.com/wp-content/uploads/Are-MOOCs-the-Future-of-Online-Education-Infographic.jpg

7. COURSERA
Founded in 2012 by Prof. Daphne Koller
and Andrew Ng from Stanford University
Raised $65M in funding from Silicon
Valley VCs
6.8M registered users
Offering 600+ courses
108 partner institutions

8. COURSERA

9. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

10. SCOPE OF ACTIVITIES
COURSERA
Learning
Institutions /
Universities
Amazon
Web Services
ACE Publishers Translators
Content Delivery X
Licensing X
Distribution X
Screening Services X
Marketing
X
Content
Development
X
Web Storage X
Server Infrastructure X
Search X
Accreditation X
Reading Materials X
Translations X

11. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

12. Elite Universities,
Publishers
Students
Students
Students within
a course
Peer
assessments
Free + Paid
courses
Course content,
textbook
recommendations
Amazon
Ad exposure for
textbook
recommendations
Employers
Job placement
for qualified
students
List of
Qualified
Students to
Hire
Textbooks
ACE Credit
ACE Credits granted on
passing Signature Track and
Credit Exam
Course
Accreditation
Non-partner
Institutions
School
Credits
License to
use platform and
certain courses
VALUE PROPOSITION
VALUE NETWORK

13.  COURSERA will only
offer classes/content
from the most
reputable institutions.
 A composition of
the members of the
Association of
American Universities
or “top five”
universities in
countries outside of
North America.
VALUE PROPOSITION
PRESTIGIOUS COURSES

14. Students who have completed the course
with Signature Track will receive a Verified
Certificate issued by COURSERA and the
participating university.
VALUE PROPOSITION
SIGNATURE TRACK

15.  Verified Certificate proves
that they have met the
passing criteria of the
online courses offered by
a university on
COURSERA.
 It can be used to advance
in their careers, gain
valuable credentials, or
build on what they already
know.
 People can also list their
Verified Certificate on
their résumé/CV and
include it on social
media/career profiles.
VALUE PROPOSITION
VERIFIED CERTIFICATE

16. Students can earn an ACE
CREDIT (American Council
on Education’s College
Credit) by signing up for an
eligible course in
the Signature Track.
As well as taking an online
proctored Credit
Recommendation Exam at
the end of the course.
VALUE PROPOSITION
RECOGNITION OF CREDITS

17. COURSERA Career Services - opt-in recruiting service
that allows students to find and connect with positions
that “match their skills and interests.”
VALUE PROPOSITION
CAREER ADVANCEMENT

18. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

19. COMPETITOR ANALYSIS
https://www.edsurge.com/n/2013-12-22-moocs-in-2013-breaking-down-the-numbers

20. *As of January 2014
COMPETITOR ANALYSIS
Organization Status For-profit For-profit Non-profit
Funding $65M $21.1M $60M
Number of Students 5+ million 1.8 million 1.65 million
Number of Courses
532
(Broad range of subjects)
33
(Technical fields)
125
(Broad range of subjects)
Number of
Languages
5 63+ 1
Pacing Start and end dates
No start/end dates (suggested
completion time)
Start and end dates
Verified Certification
Virtually verified certificates for
$30-100 for 70 courses
Virtually and physically proctored
exam certificates
Physically proctored exam
certificates
Accreditation
5 courses offered for ACE credit
for $90-190; Credit at licensing
institutions
5 courses offered for credit at
California State University
system for $150
Credit at licensing institutions
Career Services Limited number of companies Network of 400+ companies None
Platform
Development
Company Company + student contributions Open-source
Content
Development
Outsourced to elite partner
institutions
Co-developed with instructors
Developed by institutions in
xConsortium

21. COMPETITOR ANALYSIS

22. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

23. CUSTOMER SELECTION
Individuals
Companies
Learning Institutions / Universities

24. Individuals from around the world
Individuals with busy schedulesIndividuals interested in prestigious courses
Individuals pursuing particular courses
CUSTOMER SELECTION
INDIVIDUALS

25. CUSTOMER SELECTION
INDIVIDUALS
Source: MOOCs @ Edinburgh 2013, 10 May 2013
95
41
33 32
20
12
7
1
LearnNew
Things
TryOnline
Education
Togeta
certificate
Improveone's
career
Seewhat
MOOC'sare
Meetnew
people
Browse
Edinburgh's
Offering
Unsure
Aspirations
MOTIVATION SURVEY

26. CUSTOMER SELECTION
INDIVIDUALS
http://mfeldstein.com/the-most-thorough-description-to-date-of-university-experience-with-mooc/
DEMOGRAPHIC SURVEY

27. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

28. VALUE CAPTURE
Premium
Services
Licensing
Career
Services
Merchandise
Affiliates
Program

29. VALUE CAPTURE
VALUE CHAIN
Elite Universities,
Publishers
Students
Students
Students within
a course
Peer
assessments
Free + Paid
courses
Course content,
textbook
recommendations
% gross
revenue from
courses
Amazon
Exposure for
textbook
recommendations
% commission
on each book
sale
Employers
Job placement
for qualified
students
List of Qualified
Students to Hire
money
Textbooks
money
Payment for
Signature Track
Program
ACE Credit
ACE Credits granted on
passing Signature Track and
Credit Exam
Evaluation
Fee
Course
Accreditation
Non-partner
Institutions
School
Credits
Licensing Fees:
$3000 + additional
fee per student
License to
use platform and
certain courses

30. Signature Track
Premium Service
USD30-90 per course +
USD60-90 for exam
VALUE CAPTURE
PREMIUM SERVICES
Estimated total revenue of
USD$1,300,000 in 12 months
(25,000 students in the Signature Tracks)

31. Specialization
Certificate for a
set of courses
USD300-500 per
certificate
VALUE CAPTURE
PREMIUM SERVICES

32. VALUE CAPTURE
LICENSING
Licensing of COURSERA platform
and certain courses to non-
partner institutions
USD3,000 + additional fee per student

33. Affiliates Program with Amazon
COURSERA will collect profit from Amazon.com
each time students buy recommended textbooks.
http://www.timeshighereducation.co.uk/news/coursera-strikes-deal-with-publishers-on-textbooks/2003754.article
“The publishers will make relevant
chapters from e-textbooks
available free of charge, although
students who wish to read the
books in full, or read them once
their course has ended, will have
to purchase them.”
VALUE CAPTURE
AFFILIATES PROGRAM

34. COURSERA Company Gear
Earns twice as much money than textbook revenues
VALUE CAPTURE
MERCHANDISE

35. COURSERA Career Services
Companies seeking qualified employees pay a
certain fee for introduction, with a share of that
revenue going to colleges that offer the course.
VALUE CAPTURE
CAREER SERVICES

36. INTRODUCTION
SCOPE OF ACTIVITIES
VALUE PROPOSITION
COMPETITOR ANALYSIS
CUSTOMER SELECTION
VALUE CAPTURE
STRATEGIC CONTROL

37.  Signature Track: Obtained certificates can be used as
degree credits.
 ACE credit: expand to more subjects
 College credit: Universities can offer courses that can be
counted for college credits
 Secure Assessments: Testing centers to prove students
have done work themselves
 Establish the Gold Standard in Course Certification
recognized worldwide (like GMAT, IELTS) by employers and
universities
 Security: Identity verification technology through keystroke
biometrics and webcam
 Partnerships:
 Job Opportunities
STRATEGIC CONTROL
COMPLIMENTARY ASSETS

38. STRATEGIC CONTROL
BARRIER OF ENTRY
 Strengthen and establish exclusive relationships
with Elite Institutions
 Course videos, tests and presentations are
delivered only through:
a. COURSERA website;
b. Mobile application for iOS, Android, Windows
Phone; or
c. Limit the usage of course materials within the
COURSERA web platform and mobile
application.

39.  Corporate learning: COURSERA provide specific
courses for companies with charges
 ‘Freemium’ model: Charge for courses that students
are interested to further pursue after introductory
chapters
 Company-sponsored courses: give options to
employers to bid for Signature Track with the courses
they prefer or build customized Track for employers
 Charging tuition: Universities can offer tutors for
courses
 Charging for Proctored Exams: offer proctoring
services that connect proctors and students via
webcam
STRATEGIC CONTROL
REVENUE

40. • Develop the COURSERAPad, a cheap tablet
device with all the tools pre-installed for
learning-on-the-go
• Can be used by students from primary to
university level
• Manufacturing will be outsourced
STRATEGIC CONTROL
REVENUE

41. COURSERAPad: a color multitouch tablet running
COURSERA OS for learning-on-the-go
• Software:
– OS: customized version of Android
– COURSERA Store: similar to iTunes University where
users can choose new courses to enroll in.
– COURSERA Apps: Pre-installed apps that can help in
learning Math, Algebra, Accounting, Physics, etc.
• Hardware:
– Processor and memory enough to run apps smoothly
– Webcam for identity verification in Signature Track
– WiFi for internet connectivity
– Touchscreen
STRATEGIC CONTROL
REVENUE

42. STRATEGIC CONTROL
BUSINESS MODEL
Employers
Students
Students
Students within
a course
Coursera
Peer
assessments
Freemium or Paid
Certified Courses
Screen and recommend
potential candidates
Advertisers
Advertising
Fees
InstaEDU
Online Tutor
Commission
on sales
Payment for Signature
Track and/or
COURSERAPad
LinkedIn
Student Data
(Grades and
Certifications)
Companies
Specialized
Courses
Exposure for
Online Tutor
services
Exposure for
Ads
Signature Track students
get free access to
LinkedIn’s Premium
Services
Commission on
recruited
COURSERA
students
Recruitment and
advertising fees
Access to talent
database and
ad space
Bid for Signature Track
courses based on
preferred topic
COURSERA
Pad
Fees for
corporate learning
Online
tutoring
Pay discounted rate
*In addition to COURSERA’s
current business model

43. THE
END

44. Revenue for 9 months
(ending in Sept. 30, 2013)
*numbers in thousands
 Business networking website
 Number of Users: 277 million, Revenue: $1.52 billion
 Alexa global website ranking: 8th
APPENDIX

45.  Online tutoring company matching students with online tutors
 Founded by 3 Stanford graduates
 High quality tutors screened
 Subjects cover topics in higher education
APPENDIX