A Study On E-Learning Business Model

Online education represents a new business model, and we think its potential marketing size is a unique advantage. However, even with the rise of MOOC (Massive Open Online Courses), positive changes in online consumer behavior, and evaluation of different revenue models, profitability-represented by a successful business model--will ultimately determine if online education survives as a new industry.This study on the business model of online education uses socio-economic development as a guide, traditional commercial business model as research framework, and practical principles to design the study structure. The study begins with analysis of factors driving online education and business models. First, we evaluated profit and revenue models being used both at home and abroad for online education. Next, we analyzed the operating model and market potential of online education, by identifying and categorizing the market while also enumerating specific needs of online consumers. Then we identified and analyzed the industry chain--players, relationships, collaboration and services-needed for the business model, as well as its benefits and effects. Fourth, we projected current cost and revenue streams based on adoption of the business model, its operational requirements and its underlying value propositions about revenue channels, cost control, financial resource management, and profit categories. Executing the business model requires major financial investment, partnership development, marketing promotion, and development of multiple revenue streams. Lastly, we compared the study recommendations against a case study of Coursera, the online e-learning provider.The study utilized research on innovations in profit and revenue models for actual online education providers, e-learning industry characteristics, actual online consumer behavior, and changes in social perception of e-learning. Analysis of these factors was used in developing our online education business model with specific reference to its application in online education in China.