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 Chegg's Business Model is so successful?

Get all the answers


Chegg’s Company Overview


Chegg is an American online textbook rental company based in Santa Clara, California that specializes in online textbook rentals (both in physical and digital formats), homework help, online tutoring, scholarships, and internship matching. It is meant to help students in high school and college. They also own EasyBib, Citation Machine, BibMe, and Cite This For Me citation services. The company was founded in 2005 by three Iowa State University students who wanted to make education more affordable and accessible. Since then, Chegg has become one of the leading providers of online learning solutions, serving over 6.4 million subscribers in 2020. Chegg's mission is to empower students to take control of their education and achieve their academic goals. Chegg is an online education platform that provides various services to students, such as textbook rentals, homework help, online tutoring, test preparation, and scholarship matching. Chegg's business model is based on generating revenue from both students and content providers. Students pay a monthly subscription fee to access Chegg's services, while content providers receive a share of the revenue from their contributions. Chegg's value proposition is to offer affordable and convenient access to high-quality educational resources and personalized guidance.

https://www.chegg.com/

Country: California

Foundations date: 2005

Type: Public

Sector: Information & Media

Categories: Education


Chegg’s Customer Needs


Social impact:

Life changing: self-actualization, motivation, affiliation/belonging

Emotional: provides access, badge value, reduces anxiety, rewards me

Functional: saves time, simplifies, reduces effort, avoids hassles, quality, makes money, reduces cost, organizes, integrates, connects, sensory appeal


Chegg’s Related Competitors



Chegg’s Business Operations


Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Platform as a Service (PaaS):

Platform as a Service (PaaS) is a class of cloud computing services that enable users to create, operate, and manage apps without the burden of establishing and maintaining the infrastructure usually involved with designing and developing an app.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Embed code:

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