Businessmodel of McGraw-Hill Education

Customer Segments

McGraw-Hill Education provides products to all members of the education community, including educators, students, tutors, professional learners and instructors. This includes schools, colleges, universities and corporate entities that purchase institution-wide, subscription-based solutions.

The Company’s serves education markets, including pre-kindergarten, elementary, secondary and vocational fields; higher education markets, including college, university, and post-graduate fields; and business markets, including within the healthcare, engineering, computer technology sectors.

McGraw-Hill Education’s principal market is the US; however, the Company also provides educational resources and solutions to customers across more than 135 countries worldwide and in almost 60 languages.

Value Propositions

McGraw-Hill is one of the most well-regarded and well-known educational resource providers in the world. Its reputation as a provider of high quality, reliable products and services is one of its greatest values.

The Company offers a broad range of innovative solutions, making frequent updates and developments to its product range, and integrates third-party functionality and content from a range of respected sources and platforms.

McGraw-Hill Education’s products are flexible and accessible, providing the option of physical, digital and hybrid products, with all digital products accessible through web portals and or mobile applications.

The Company also provides ongoing technical support to customers and makes some learning resources available to users free of charge.

Channels

McGraw-Hill Education operates a website at www.mheducation.com, where customers can browse the Company’s products, solutions and services. Purchases of some products can be made through the website, while more complex solutions can be purchased through the McGraw-Hill Education sales team.

The Company also provides a range of mobile and tablet apps for iOS, Android and Windows operating systems, including Words to Learn By, Word Wonderland Elementary, McGraw-Hill K-12 ConnectED, and My Video Tutor.

Customer Relationships

McGraw-Hill Education customers can purchase the Company’s learning products directly from its online store, with no interaction with sales representatives. Users can also register for the McGraw-Hill Education Connect learning platform through the Company’s website, with students and learners requiring a specific URL provided by their teacher or instructor before setting up an account.

For larger subscriptions at the enterprise level, including those purchased by schools, universities and corporate entities, customers can contact the McGraw-Hill Education sales team directly.

The McGraw-Hill Education homepage provides links to various customer care resources, where user can access technical support, place orders and contact sales representatives. The Company also hosts a feedback form that enables customers to review their customer experience.

Additionally, McGraw-Hill Education interacts with customers through its social media accounts, including through Facebook, Twitter, LinkedIn and Pinterest.

Key Activities

McGraw-Hill Education provides educational materials and learning solutions to students, instructors, professionals, and educational institutions worldwide. This includes learning content, tools, and services delivered through print, digital, and hybrid solutions aimed at learners in the pre-kindergarten, secondary school, college and university, and the professional learning and information markets.

The Company’s activities are divided into two principal operating segments: the Higher Education, Professional and International Group, and the School Education Group.

The former provides instructional and adaptive learning content and institutional services to higher education students and educators; professional products, such as subscription-based information services, for customers within the business, medical, and education testing sectors; and products that serve educational and professional markets worldwide.

The latter segment provides instructional content and services to elementary and secondary schools, and assessment products and solutions, including customised instruction and reporting services for all levels of formal and professional education.

Key Partners

McGraw-Hill Learning has a range of partners, primarily content providers, software development companies, education service providers, vendors and affiliates. The Company claims to partner with more than 14,000 authors and educators worldwide. This includes a number of product and content providers – including NBC Learn, Discovery Education and Compass Learning – that enable users to access third-party resources directly from the McGraw-Hill Education website.

In 2012 the Company launched its Digital Learning Partnership Program, which encourages colleges and universities to transition to digital solutions, based on similar projects undertaken with with Indiana University and the University of Minnesota. McGraw-Hill Education also operates a vendor portal that enables suppliers to create and update profiles, increasing vendor efficiency, and manages a network of affiliate marketing partners across the internet.

Key Resources

McGraw-Hill Education’s key resources are its online learning platform, its IT infrastructure, its product portfolio, its network of content, vendor and integration partners and its personnel.

The Company also operates seven publishing centres worldwide, which play a key role in the provision of the Company’s services. McGraw-Hill Education does not have any patent applications filed with the US Patent and Trademark Office.

Cost Structure

McGraw-Hill Education incurs costs in relation to the development of its learning platform and educational products, the maintenance of its IT infrastructure, management of its various partnerships, and retention of its personnel.

The Company operates offices in more than 53 countries – including across North America, India, China, Europe, the Middle East, and South America – and employs more than 6,000 employees worldwide, representing significant costs with regard to rent, utilities, salaries and benefits.

Revenue Streams

McGraw-Hill Education generates revenue through the sale of physical and digital learning resources, education platform subscriptions and hybrid learning solutions.

The Company’s products are divided into four principal segments: McGraw-Hill Education School, which refers to services tailored to K-12 learners and adult education; McGraw-Hill Education Higher Education, which refers to products and services aimed at college level learners; McGraw-Hill Education Professional, focused on post-graduate and professional learners; and McGraw-Hill Education International, which relates to products for learners outside the US.

The Company’s subscription-based solutions and platforms – including student and teacher resources – are priced on a per year and per student basis, while its textbooks and physical resources can be purchased in return for one-time payments.