Business Success in Context: Defining a successful business model for language centers
The global language training industry is a highly competitive environment where several larger franchisors and licensors compete for a limited supply of highly capable entrepreneurs willing to invest in this industry. However, capability alone is often not enough to succeed in this industry.
Düggelin, Wilhelm, 2020
Type of Thesis Bachelor Thesis
Client inlingua International Ltd.
Supervisor Perrett, Pieter Jan
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The client company seeks to expand its network of language centers operated by partners. The company grants trade mark rights to several hundred partner firms worldwide. The company further publishes pedagogical multimedia for language training and provides partner centers with an e-learning platform. The aim of this thesis is to identify and describe a successful business model which could be adapted and implemented by new and existing partners of the client company. To arrive there, the business model of a successful partner in Latin America is mapped, and each component evaluated.
A survey as well as an interview with a successful partner company was conducted to identify the partner firm's Business Model Canvas based on Osterwalder et al. (2010). To understand the business model and its performance in the context of its external environment, a macro environment as well as an industry structure analysis accompanied the internal analysis. The results of both, the external and internal analysis were evaluated using scoring models in order to define strengths and weaknesses of the business model as well as opportunities and threats, inherent to the business’s environment.
This study displays a solid business model with several key features which could help other existing as well as new partners of the client company to better position themselves in their market as modern providers of high-quality language services. It further became clear that all components of the Business Model Canvas are of almost equal importance, but that the Value Proposition as well as the component Key Activities could remain relatively constant even in different environments. Attention is also given to the current corona virus related economic circumstances where language centers must be quick adapters in order to survive.
Besides suggesting that the client company evaluate several suggested options for how the Business Model Canvas could be used as a blueprint for new as well as existing partners, the thesis also provides strategic implications for the Latin American partner company which served as the principal case for this thesis.
Studyprogram: Business Administration International Management (Bachelor)
Keywords Language center, partner business model, business model canvas, macro analysis, industry analysis, SWOT-analysis, expansion, Latin America
Confidentiality: vertraulich