Chegg Business Development Overview

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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?

Struggled, mostly due to seasonal supply and demand imbalances. Signup and view all the answers

What did the co-founders reason about students when they were starting up?

Students might prefer to rent textbooks online. Signup and view all the answers

Why did Chegg hire Nathan Schultz as CCO?

To help build processes and systems needed to support rapid growth. Signup and view all the answers

How did Chegg maintain its success in the face of emerging competition?

Partnered with college bookstores. Signup and view all the answers

Could digital textbooks be priced lower than printed textbooks?

Yes, would crush Chegg's traditional business. Signup and view all the answers

What is Chegg Student Hub?

A set of digital products and services that could capitalize on the company's existing relationships with students. Signup and view all the answers

What was the CourseRank acquisition?

First acquisition, was key to building what would later be called 'The Student Graph'. Signup and view all the answers

What was the Cramster acquisition?

A company that assisted nearly 1-million student members with their homework. Signup and view all the answers

What happened with the Notehall acquisition?

Did not go as smoothly as the others; growth did not materialize. Signup and view all the answers

What was the Student of Fortune acquisition?

Allowed users to post questions to a network of subject experts. Signup and view all the answers

What did Chegg do with the acquisition of Zinch?

Match students with schools and scholarships; universities paid them to reach desired student profiles. Signup and view all the answers

What is the term for what Chegg did with Flux/3D3R?

Acqui-hire. Signup and view all the answers

What did Chegg do after numerous acquisitions?

Devised a more structured acquisition process. Signup and view all the answers

What did Jeff Buening do when he joined the business development team?

Systematically mapped the education ecosystem, identifying key participants by segment. Signup and view all the answers

What are distribution partnerships?

Chegg had the capabilities needed to distribute digital access codes (DACs) and worked with publishers to do so. Signup and view all the answers

What are platform integration partnerships?

Developing a service-oriented architecture to allow multiple teams to offer products and services leveraging Chegg's student graph. Signup and view all the answers

What marketing partnerships did Chegg engage in?

Chegg partnered with TRESemme to offer hair product samples along with textbook deliveries. Signup and view all the answers

Why didn't Chegg pick up two startups?

First one couldn't demonstrate an acceptable ROI; second had a big sequencing impact of events. Signup and view all the answers

How were traditional degree programs being disrupted?

Online open courses. Signup and view all the answers

What were the trends pointing to for Chegg?

A tremendous opportunity to position itself at the center of the ecosystem and provide access to modular learning content. 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.

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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.