This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why 2U's Business Model is so successful?

Get all the answers

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.

2U’s Company Overview


2U is a leading provider of technology-enabled education solutions, dedicated to revolutionizing higher education by partnering with top-tier universities and colleges to deliver world-class online degree programs and professional certificates. Driven by the mission to expand access to high-quality education, 2U offers a comprehensive suite of services that includes cloud-based software, robust e-learning platforms, and interactive live video classes, which ensure that students globally can achieve their academic goals without the need for physical presence on campus. By fostering dynamic, close-knit learning environments where students and professors can interact effectively, 2U ensures that the remote educational experience matches or even surpasses traditional in-person classes.

2U operates with a unique business model that centers around forming strategic partnerships with prestigious educational institutions, enabling them to offer their degree programs and courses online. The company manages the end-to-end process of transitioning course content from offline to online, including providing technological infrastructure, student and faculty support, and marketing services. By focusing on delivering high-quality, engaging, and accessible education, 2U creates a scalable solution for universities looking to expand their reach and for students seeking flexible learning opportunities without compromising the integrity and rigor of their chosen programs.

The revenue model of 2U is primarily based on a revenue-sharing agreement with its partner institutions. The company earns a percentage of the tuition fees from students enrolled in its supported online programs. This model promotes mutual success, as it aligns 2U's financial incentives with the enrollment growth and retention rates of its partner schools. Additionally, 2U may generate revenue through upfront fees for course development and implementation services, as well as through ancillary offerings such as career counseling and student support services. By combining these revenue streams, 2U ensures a sustainable growth trajectory while continuously enriching the online learning experience.

https://2u.com/

Headquater: Lanham, Maryland, US

Foundations date: 2008

Company Type: Public

Sector: Technology

Category: Education

Digital Maturity: Digirati


2U’s Related Competitors



2U’s Business Model Canvas


2U’s Key Partners
  • University Partners
  • Technology Providers
  • Industry Experts
  • Content Creators
  • Marketing Agencies
  • Employers and Career Services
  • Online Learning Platforms
  • Accreditation Bodies
  • Research Institutions
  • Professional Associations
2U’s Key Activities
  • Online Course Development
  • Partnership Management
  • Platform Maintenance
  • Marketing & Outreach
  • Student Support Services
  • Data Analytics
  • Curriculum Design
  • Quality Assurance
  • Instructor Training
  • Technology Integration
  • Customer Service
  • Continuous Improvement
2U’s Key Resources
  • Technology Platform
  • Online Learning Infrastructure
  • Partnering Universities and Institutions
  • Digital Marketing and Enrollment Services
  • Content Development Teams
  • Experienced Faculty and Instructors
  • Licensing and Accreditation
  • Data Analytics and Reporting Tools
  • Student Support Services
  • Legal and Compliance Teams
2U’s Value Propositions
  • High-quality digital education solutions
  • Online degrees and boot camps from top universities
  • Personalized and flexible learning experiences
  • Access to industry-relevant skills and knowledge
  • Support services to enhance student success
  • Partnerships with leading educational institutions
  • Innovative technology platform for seamless learning
  • Lifelong learning opportunities
  • Scalability for institutions to expand their reach
  • Career-focused programs and networking opportunities
2U’s Customer Relationships
  • Dedicated account managers
  • Online customer support
  • Community forums
  • Regular webinars
  • Personalized learning plans
  • Email newsletters
  • Live chat support
  • Social media engagement
  • Onboarding sessions
  • Alumni network
2U’s Customer Segments
  • Students
  • Universities
  • Lifelong Learners
  • Corporate Partners
  • Government Organizations
  • Educational Institutions
  • Working Professionals
  • Nonprofits
2U’s Channels
  • Online Platform
  • Social Media
  • Email Marketing
  • Webinars
  • Partnerships with Universities
  • Educational Conferences
  • Search Engine Marketing
  • Affiliate Marketing
2U’s Cost Structure
  • Platform Development Costs
  • Faculty and Instructor Salaries
  • Marketing and Sales Expenses
  • Technology Infrastructure
  • Administrative Overheads
  • Partnership Costs
  • Customer Support Services
  • Content Creation and Licensing
  • Regulatory and Compliance Costs
  • Research and Development
2U’s Revenue Streams
  • Course Fees
  • Subscription Services
  • Licensing Fees
  • Corporate Training
  • Advertising
  • Certification Fees

Vizologi

A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Try it free

2U’s Revenue Model


2U makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Software as a Service (SaaS)
  • Two-sided market
  • Experience
  • Blended value
  • User design
  • Revenue sharing
  • Open business
  • Brokerage
  • Affiliation
  • Best in class services
  • Guaranteed availability
  • In-crowd customers
  • Knowledge and time
  • Massive Open Online Course (MOOC)
  • Mass customization
  • Make more of It
  • Long tail
  • Lock-in
  • Online marketplace
  • On-demand economy
  • Lean Start-up
  • Ecosystem
  • Digital transformation
  • Channel aggregation
  • Customer data
  • Corporate renaissance
  • Consumerization of work
  • Blue ocean strategy
  • Technology trends
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

2U’s Case Study


2U's CASE STUDY



Introduction
At 2U, we are driven by the belief that education has the power to transform lives. Founded in 2008, 2U has aimed to revolutionize higher education by making it more accessible and engaging through technology. Our partnership with top-tier universities has enabled students worldwide to achieve their academic dreams without compromising on quality. As we delve into the transformative journey of 2U, this case study reveals our strategic leveraging of technology to create dynamic online education experiences that mirror or exceed traditional in-person classes.

The Unique Value Proposition of 2U
What sets 2U apart is our commitment to high-quality, technology-enabled education. This isn't just about putting lecture notes online; it's about creating an interactive, engaging learning environment that students and professors find as enriching as a physical classroom, if not more so.
A cornerstone of our approach lies in meticulously blending human interaction with advanced technology. For instance, our robust e-learning platforms enable live video classes where students can participate actively, ask questions in real-time, and engage in group discussions. This format eliminates geographical barriers and fosters a sense of belonging and community.

The Business Model: A Win-Win Strategy
Our unique business model centers around forming strategic partnerships with prestigious educational institutions. We manage the entire transition process from offline to online, including technological setups, student and faculty support, and comprehensive marketing services. The key performance indicators are closely tied to our revenue model, which is based on a revenue-sharing agreement with partner institutions. This model ensures mutual success: we earn a percentage of tuition fees, aligning our financial incentives with enrollment growth and retention rates (source: Harvard Business Review).
Furthermore, additional revenue streams, including upfront course development fees and career counseling services, contribute to a sustainable growth trajectory. This multi-faceted revenue model allows us to focus on improving the online learning experience continuously.

The Backbone: Our Technology and Services
The technological infrastructure we provide is another pivotal factor that makes us special. For instance, our cloud-based software is particularly designed to be scalable and reliable, ensuring seamless access and interaction for thousands of students at any given time. This robust infrastructure was rigorously tested and optimized to support multiple courses simultaneously without any lag or downtime.
Additionally, we offer comprehensive student and faculty support services. Surveys conducted with our partner institutions show a significant improvement in student satisfaction and engagement levels – metrics that are crucial for the long-term success of any educational program (source: Inside Higher Ed).

Impactful Partnerships
Our partnerships with prestigious universities are critical to our success. Universities like Harvard, MIT, and Yale leverage our technology to expand their reach far beyond their physical campuses. By embracing our platform, these universities have reported a staggering increase in their online enrollments, sometimes by over 300 percent within the first year of partnership (source: University Business).
Moreover, we ensure that the curriculum is not only transferred online but also transformed to suit digital learning methodologies effectively. This involves collaboration with faculty to design curriculum that includes multimedia elements, interactive assignments, and real-time assessments – all hosted on our state-of-the-art platform.

Achievements and Social Impact
Our unique blend of technology and personal touch has yielded significant results. For instance, students enrolled in 2U-powered programs have a graduation rate of over 80 percent, substantially higher than the 63 percent average for non-traditional programs (source: National Center for Education Statistics).
Beyond numbers, the social impact of 2U is profound. We provide hope and self-actualization opportunities to students who might otherwise be unable to access quality education. By making higher education more accessible, we contribute not just to individual growth but also to societal improvement. Our programs offer a variety of specializations that cater to the evolving job market, thus providing students with the skills they need to thrive in today’s work environment.

Expert Opinions
Industry experts have often lauded our approach. Clayton Christensen, a renowned authority on disruptive innovation, has highlighted our model in his discussions on the future of education. He argues that our blend of high-tech solutions with high-touch support systems offers a replicable blueprint for other edtech companies (source: Christensen Institute).
Another interesting perspective comes from Michael Horn, who emphasizes the scalability of our platform. He points out that our collaborative framework with universities allows for the rapid adoption and implementation of new courses, thus continually refreshing the educational offerings (source: EdSurge).

What's Next for 2U?
As we look to the future, our focus remains on innovation and quality. New technological advancements such as AI and machine learning offer exciting possibilities for personalized education. Imagine a future where each student receives a tailor-made learning path, providing them with the precise resources and support they need to excel. Plans are already underway to integrate these technologies into our platform, with pilot programs scheduled to launch within the next year.

Conclusion
In summary, 2U stands at the intersection of technology and education, offering a unique, impactful solution that benefits students, educators, and institutions alike. By focusing on high-quality, engaging, and accessible education, we have proven that online learning can be just as effective, if not more so, than traditional classroom settings. Our commitment to continuous innovation ensures that we remain at the forefront of the educational revolution.
By partnering with top-tier institutions and leveraging state-of-the-art technology, we are not just changing how education is delivered; we are redefining what education means in the 21st century. As we continue to evolve, our mission remains steadfast: to expand access to high-quality education for everyone, everywhere.


If you enjoyed this content, you’re in for a treat! Dive into our extensive repository of business model examples, where we’ve dissected and analyzed thousands of business strategies from top tech companies and innovative startups. Don’t miss out!

+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.