Test Prep & Tutoring Professionals : Test Prep & Tutoring Business Integration Strategy

Test Prep & Tutoring ProfessionalsJanuary 2015 Industry Update

Are you integrating?

During 2014, TPP fielded a fair number of questions about business integration. I suspect the coming SAT Redesign has a some companies brainstorming.

While the partnership between CB and Khan Academy will culminate in a free P/SAT prep platform and this will be a challenge to test prep providers, a better understanding is warranted. This institutional partnership is a form of vertical integration.

Vertical integration was made famous by Andrew Carnegie and Carnegie Steel. Carnegie Steel used backward integration to control elements of the production process. This form of integration is not exclusive to big business nor is it the only form of integration. Horizontal integration involves developing (or acquiring firms with) like products in order to gain economies of scale. Horizontal integration seems particularly well suited for test prep & tutoring firms.

There are a number of fields related to test prep & tutoring. The usual suspects include: publishing, content creation, admissions advising, and study skills. More recently there seems to be an uptick in learning differences and cognitive training as well.

I've found that most firms at least dabble in one of the above. If there is something your company does well that is NOT directly related to tutoring or test prep delivery, it may be time to explore developing that area as a revenue driver. Stick to things that could be easily re-purposed and that are complementary to your existing product mix.

For example, if you write your own material, consider expanding into publishing, or apps, or flashcards; or, if you have developed an excellent study-skills platform, consider specializing in that area. You could also consider a more deliberate partnership with corollary partners such as cognitive specialists or learning difference counselors.

The possibilities are numerous but the main point is that most companies have internal processes & products which, if strategically integrated and leveraged, could help them diversify, increase revenue, and adapt to a changing business environment.

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