Questions and Answers
What was the new market Chegg wanted to go after?
Lifelong learners
What did Dwane do?
Head of Chegg's business development function. Had to recommend to CEO Dan Rosensweig whether Chegg should raise its bid for different companies or not.
How was Chegg founded?
In 2005, Aayush Phumbra and his partners recognized the potential in an online site at Iowa State called Cheggpost.
What was the original market for Cheggpost once they acquired it?
Signup and view all the answers
What did the co-founders reason about students when they were starting up?
Signup and view all the answers
Why did Chegg hire Nathan Schultz as CCO?
Signup and view all the answers
How did Chegg maintain its success in the face of emerging competition?
Signup and view all the answers
Could digital textbooks be priced lower than printed textbooks?
Signup and view all the answers
What is Chegg Student Hub?
Signup and view all the answers
What was the CourseRank acquisition?
Signup and view all the answers
What was the Cramster acquisition?
Signup and view all the answers
What happened with the Notehall acquisition?
Signup and view all the answers
What was the Student of Fortune acquisition?
Signup and view all the answers
What did Chegg do with the acquisition of Zinch?
Signup and view all the answers
What is the term for what Chegg did with Flux/3D3R?
Signup and view all the answers
What did Chegg do after numerous acquisitions?
Signup and view all the answers
What did Jeff Buening do when he joined the business development team?
Signup and view all the answers
What are distribution partnerships?
Signup and view all the answers
What are platform integration partnerships?
Signup and view all the answers
What marketing partnerships did Chegg engage in?
Signup and view all the answers
Why didn't Chegg pick up two startups?
Signup and view all the answers
How were traditional degree programs being disrupted?
Signup and view all the answers
What were the trends pointing to for Chegg?
Signup and view all the answers
Study Notes
Chegg Overview
- Chegg targets lifelong learners as a new market to expand its services.
- Founded in 2005 by Aayush Phumbra and partners, initially recognized potential in a site called Cheggpost.
Business Development and Leadership
- Dwane, head of business development, advised CEO Dan Rosensweig on acquisition bids.
- Nathan Schultz was hired as Chief Commercial Officer (CCO) to develop systems for rapid growth.
Market Challenges and Adaptations
- Originally, Cheggpost faced challenges due to seasonal supply and demand imbalances.
- The co-founders hypothesized that students might prefer renting textbooks online.
- To combat competition, Chegg formed partnerships with college bookstores.
Digital Transition
- Digital textbooks were a threat to Chegg's traditional business due to lower pricing potential.
- Chegg launched the Student Hub, encompassing digital products and services to support various student needs.
Significant Acquisitions
- CourseRank was the first acquisition crucial for building "The Student Graph."
- Cramster provided homework assistance to nearly 1 million students.
- Notehall's acquisition was problematic; expected growth did not occur, leading to its closure.
- Student of Fortune enabled users to connect with subject experts for personalized tutorials.
Further Expansions
- Acquired Zinch to connect students with universities and scholarships, enhancing targeted recruitment.
- Chegg employed an acqui-hire strategy with Flux/3D3R to integrate new teams.
- Post-acquisition, Chegg established a structured acquisition process to streamline future efforts.
Ecosystem Mapping and Partnerships
- Jeff Buening mapped the education ecosystem, identifying key participants by segment to inform strategy.
- Developed three types of partnerships:
- Distribution partnerships for digital access codes (DACs) with publishers.
- Platform integration partnerships for service-oriented architecture to enhance product offerings.
- Marketing partnerships, notably with TRESemme for promotional samples with textbook deliveries.
Strategic Decisions
- Opted against acquiring two startups due to ROI concerns and potential negative sequencing impacts.
- Traditional degree programs face disruption from online open courses, indicating a shift in educational delivery.
Future Opportunities
- Trends suggest a growing opportunity for Chegg to position itself as a central player in the learning ecosystem.
- Chegg aims to serve as a clearinghouse for modular learning content to a global audience.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the evolution and strategies of Chegg as it adapts to the needs of lifelong learners. From its founding to key acquisitions, it highlights significant developments in business leadership and market challenges. Test your knowledge on Chegg's transformation and digital adaptations.