SWOT analysis of PE (Pearson Education) Pvt Ltd.

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The SWOT analysis helps to summarise the key environmental issues and the strategic capabilities of an organisation that are most likely to impact on strategy development (Johnson, Scholes & Whittington, 2005, p. 102). This task performs a SWOT on Pearson Education.

Strengths
Pearson Education is a strong brand name with more than 40 years of experience. Its curriculum is designed after a systematic and rigorous process.
It has strong e-presence as also products utilising latest technology like ‘podcasting’ where audio study guides can be played back on iPods.
Marketing strategies like segmentation are used which help in targeting consumers better (Pearson PLC., 2007, p. 61).
It is a CSR active company and was ranked ‘Platinum’ for a second year in 2007 in the Business in the Community Corporate Responsibility Index and the Environment Index rankings (Progress Report 2007, 2008).

Weaknesses
Most of the sales (almost 70%) are concentrated in North America (Pearson Education: overview, 2007). It has a very small presence in Asia and Africa (Pearson PLC., 2008, p.16).
There is a high focus on English language publishing.
The growth in the higher education segment has been quite slow compared to other segments (Pearson PLC., 2007, p. 103).
High dependency on the US government with more than 90% funds coming from state, local governments and remainder from federal sources (Pearson PLC., 2007, p. 9).
Free cashflows have declined according to the 2007 Annual Report (Pearson PLC., 2007, p. 104).



Opportunities
Expansion in Asia Pacific segment in countries like China and India where there is a huge consumer market is a very big opportunity.
There is a worldwide growth opportunity for Pearson Education’s MyLabs adaptive e-learning solutions which is currently available in over 50 countries and whose demand has grown by 50% over the past five years (Pearson PLC., 2007, p. 5).
Strengthening position in publishing languages other then English could also be considered an opportunity.

Threats
Pearson Education’s intellectual property rights may have insufficient protection in some countries. Despite of copyright laws, infringement may still exist (Pearson PLC., 2007, p. 19).
Operation in digital distribution channels in a competitive environment is difficult and need adaptability.
Competition from non-profit organisations can also be a considerable threat.
Foreign currency rates fluctuations pose a major financial threat (Pearson PLC., 2007, p. 20).



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