Primary problems
The primary problem that the company is experiencing is the possible loss of popularity of the services that Chegg offers after the inevitable growth of the digital textbooks market. The expansion of the digital books market appears to be unavoidable, as a switch from costly printing technologies to efficient, convenient, and easy to use digital printing is a logical consequence of the worldwide internet penetrating all spheres of everyday life of the population.
Students, as the youngest and most innovation-seeking part of Web users, are most likely to be among the first group of users eager to change the habitual way of using textbooks to the one that brings new opportunities and beneficial changes. Such changes can put a serious threat on the competitive abilities of the services that Chegg has been improving for years. The owners of the company are currently facing a fundamental dilemma: whether to start adapting the company’s services to the needs of the digital textbooks market or to focus on improving the existing services and making them more attractive and competitive.
Insights from the Case and Potential Decisions
The potential decisions that can solve the dilemma should rely on the gained experience, identifying the main specifics of the market which play an essential role in determining the further development of the company, and the analysis of future perspectives related to the growth of popularity of digital books. The analysis of the market leads to the conclusion that the demand for textbook rentals is met with a relatively big supply provided by different services.
The success of Chegg inspired many entrepreneurs to invest in similar projects that soon have become Chegg’s competitors. Therefore, Chegg is no longer the only service offering printed textbooks rentals, and continuing leadership in the market achieved by the company is no longer guaranteed. However, the possibility of acquisition of CourseRank gives the company significant advantages compared to its competitors. The expansion of the company will bring the ability to provide comprehensive services for students and make Chegg’s website a unique and very useful source for obtaining all necessary information.
Potential courses of actions
Potential actions that can save the company from failure related to a possible invasion of digital textbooks include re-orientation towards providing both print and digital textbook rental services. Though the digital textbooks market has many features that seem to be unclear how to deal with, the owners of Chegg can become the pioneers in establishing an effective network of services providing the opportunities for exchanging the digital versions of textbooks among students. The company should seek cooperation with digital publishers. Such cooperation can help to find effective solutions for finding an effective way to use digital books in online rental services.
Hiring specialists who have experience working with digital publishing appears to be a good idea. Acquisition of CourseRank and broadening the company’s range of services to provide comprehensive help in tutoring and studying can also bring great results. If the company manages to unite several most important services for students, including textbooks rentals, information about classes, an opportunity to create optimal schedules, etc., its rating will inevitably grow. Therefore, cooperation with digital publishers and broadening the range of services, which are useful in students’ everyday life, appear to be good solutions. The company can continue being a leader in the market if it provides necessary innovations and improvements of the services.