Wednesday, September 25, 2024

Week 4 Group Discussion_Group 1

Group 1

Au Ka Chun, Thad

Chau Yee Ki, Joyce

Wong Ying Kit, Alpha

Lam Chak Fung, Alex

Ng Hio Tong, Toby

Lai Ka Yin, Rika


Duolingo






















Competitive Rivalry: Moderate to high


There are quite a number of competitors for Duolingo. However, the Company provides various teaching methods and the learning schedule is flexible, which can accommodate the needs of different customers and offset the impacts of competitive industry to some extent. 


Supplier Bargaining Power: Moderate to high


The suppliers of Duolingo are the teachers, and they may need to be qualified with different professions. Thus, it might have a few numbers of suppliers which increases the bargaining power of suppliers. 


Nevertheless, Duolingo provides unique experiences to the users such as getting streak which acts as the peer-to-peer interaction.  


Buyer Bargaining Power: High


Since Duolingo is free of charge for the basic usage, the switching costs of users are also relatively low and there is no "commitment" (as known as money) to the Company. In addition, the user loyalty seems to be increased due to the personalised features.


Threat of Substitution: Low to moderate


Despite a number of substitutes in the market and the in-app purchases for upgrade functions of Duolingo, most of those companies are still more expensive than Duolingo which makes the threat of substitution lower.


Threat of New Entry: Low to moderate


The market of the language online learning platform is quite competitive and as for a mobile APP, the cost of research and development is high which might be the difficulties for new entry. 


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