Shikshaa Public School: Options for Growth
In March 2020, the director of Shikshaa Public School (SPS), a privately owned school with 785 students, located in Chennai, India, and his wife and co-founder were reviewing the school's performance and deciding its strategy going forward. The Indian education sector was highly regulated and competitive. Government schools, government-aided schools, and private schools all competed for new student enrolments to obtain a portion of the US$101.1 billion (in fiscal year 2019) Indian education sector. Having recently taken out a bank loan to construct a school building that increased SPS's capacity to 3,000 students, the cofounders were considering ways to increase SPS's revenue and profitability. The options considered were (1) more effective marketing to attract an increased enrolment of new students; (2) relocation of SPS to an upmarket location, where families had the potential to pay higher fees; and (3) acquisition of another school to expand rapidly and leverage the SPS brand. Atul Arun Pathak is affiliated with Indian Institute of Management Nagpur.