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Pearson SWOT & PESTLE Analysis

ID : 52838653| Mar 2021| 15 pages

COMPANY PROFILE -Pearson

Business Sector :Education and Publishing

Operating Geography :UK, Europe, Global

About Pearson :

Pearson PLC is 176 years old multinational company; it was founded by Mr. Samuel Pearson in Yorkshire by the name of S. Pearson & Son. Since its inception, Pearson has been cornering whichever industry it entered, the former Pearson construction business which was shifted to London, England in 1890 was a renowned leading construction company globally. Later in 1920 as the company transformed into a publishing business it amplified itself to becoming the world’s leading education company. Penguin Books of Pearson was merged with Bertelsmann, a German conglomerate. The company provides assessment, courseware and services. They provide content in different forms and via diversified channels like online services and books. In the year 2015, Pearson decided that they will shift their focus to education and learning only.
It has its presence over 70 countries all over the world and having more than 22,500 employees as of 2020. They have a purpose to help in progress of people by learning, they are shifting their focus from product centric approach to a leaner’s centric approach, in this approach they are trying to understand learner’s need and build the platform accordingly. They envision for new Pearson learning platform on which learning future will be made. ‘Content, assessment and services’ form the 3 core competencies of Peasron presenting it with an edge over the competitors. With the launch of its Aida application – the first mobile AI calculus tutor, Peasorn is also one of the most innovatie education company.
Pearson’s mission statement states “To help people make progress in their lives through learning.” The company’s vision is “To have a direct relationship with millions of lifelong learners and to link education to the way people aspire to live and work every day. To shape the future of learning, we collaborate with a diversified group of partners”
Pearson’s USP or Unique Selling Proposition lies in being one of world’s leading education company based on its market cap of 5.7 Billion USD as of 2020.

Pearson Revenue :


US$ 4.94 billion - FY ending 31st December 2019 (y-o-y growth of (negative) -10.36% )
US$ 5.51 billion - FY ending 31st December 2018

Competitive Analysis of Pearson

SWOT
PESTLE

The SWOT analysis for Pearson is presented below in a matrix followed by detailed analysis

StrengthsWeaknesses
1. Offers connected services and one stop destination for their users
2. Significant growth in the revenue from Pearson digital
3. Wide range of product portfolio
4. Notable business growth across its key businesses
1. Few products have high market shares whilst many products have low market shares
2. Pearson has high employee turnover rates
OpportunitiesThreats
1. Increase in number of internet users globally
2. Increased usage of social media
3. Leveraging growth by focusing on digital initiatives
1. Offline courses and learning drastically impacted due to Covid19
2. Technological advancements by competitors
3. American colleges preferring digitization of the textbooks
4. Industry has intense rivalry and high threat of new entrants
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Pearson

Strength

1. Offers connected services and one-stop destination for their users: There is an increased demand for online education. Pearson offers a digital business with complete services for their clients. Pearson’s virtual school is a proven partner school model, they are having complete domain knowledge. Pearson is even scaling up in existing states to increase the penetration in the market. Their other products like online program management and other higher education services are a proven partner for the undergraduate model which is having a multi-program and discipline approach, it comes with a promise of “anytime and anywhere learning”. Pearson gives the capital and infrastructure that institutions require, as well as provides services like design and development of course, student enrolment and retention, market research, and insights.

2. Significant growth in the revenue from Pearson digital: Digitalization is significantly growing and Pearson is leveraging itself to match the upward trend by increasingly becoming more digital. As of 2019 66% of Pearson's total revenues was generated from the digital stream, representing an up from 59% in 2017. With its revenue of £2.5 billion generated from the digital sector, Pearson is cornering the market by becoming one of the world's leading digital learning company by revenue. Almost 2/3rd of Pearson's revenue is digital or digitally-enabled.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Cengage
  • McGraw-Hill Education
  • MacMillan
  • John Wiley
  • Blackboard.
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in Pearson SWOT & PESTLE Analysis Report

1. Pearson annual report 2019 - https://www.pearson.com/content/dam/one-dot-com/one-dot-com/global/standalone/ar2019/2019-ar.pdf

2. Pearson 2020 Nine-Month Trading Update - https://www.pearson.com/news-and-research/announcements/2020/10/pearson-2020-nine-month-trading-update--unaudited-.html

3. Pearson COVID-19 and current trading update march 2020 - https://www.pearson.com/news-and-research/announcements/2020/03/pearson-covid-19-and-current-trading-update.html

4. Pearson About us- https://www.pearson.com/about-us.html

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Pearson SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Pearson SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/pearson/ [Accessed 23 Oct, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Pearson SWOT and PESTLE analysis has been conducted by and reviewed by senior analysts from Barakaat Consulting.

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