Does it really make good business sense for a commercial organisation to target the mass education market?
Yes, it does. the computer education business has a pyramidal structure. The base is huge with a large number of people wanting to merely familiarise themselves with computers. Though this segment offers very low margins, the large base makes it an attractive one. The top is narrow and is constituted by people with a specific career orientation towards new-generation computer programming. The margins hereare the highest as such people are willing to pay high fees in order to procure a lucrative career. A number of education companies that had initially targeted only the top end have now begun to address the lower parts of the pyramid as well. This is because they have realised that it may not make good business sense to address a small niche. We have decided that we will mainly target the mass market but will also offer top-end courses to our students. As India has a huge people-base, any other strategy, that too during the growth phase of the business would only restrict opportunities
