Sylvan Case Analysis in Order Term Paper

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As we have seen, for example, Sylvan had split its business activity into two main business segments, Sylvan Learning Center and Sylvan Education Solutions, both operating on specific sub-markets, both on the K-12 customer segment. For the postsecondary customer segment, again there are two different business levels, Sylvan International Universities and Sylvan English Language Instructions. So, as we can see, diversification seems to be a key strategy in this phase, mainly because the education industry has different customer segments, generally depending on the customers' age, but also on their locations or abilities.

If in some cases, the company chose to develop in-house solutions, it was often the case that a serious and aggressive acquisition strategy was applied in order to complete the company's products. This was the case, for example, in the postsecondary market segment, but also in what some of the international ventures were concerned.

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According both to the company's CEO and to the final evaluation for the company's future, it seems that this trend will continue after 2000, with a distinct emphasis on the international aspect.

The diversification strategy that the company has been using so far is quite adequate at present, mainly because of the increased fragmentation of the market that we have referred to, but also because this trend is expected to continue in the future as well. The problem with such a strategy is that the businesses Sylvan has acquired were not only very costly, but also with high operating and fixed costs. As such, it may be advisable if not to reduce some of the business segments in which the company is operating, at least to watch them closer in….....

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