Should Kahoot invest in developing more educational content or expand into corporate training and team-building markets?

Introduction

The trade-off question at hand is whether Kahoot should invest in developing more educational content or expand into corporate training and team-building markets. This scenario involves balancing the company's core educational focus with potential new revenue streams. I'll analyze this trade-off by examining the product's current state, potential impacts, and key metrics, then design an experiment to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on Kahoot's current market position, I'm thinking they might be facing growth pressure. Could you share more about the company's current growth rate and market share in the education sector?

Why it matters: Helps understand the urgency and scale of the expansion decision. Expected answer: Moderate growth, dominant in K-12 but room for expansion. Impact on approach: Would influence the aggressiveness of the expansion strategy.

• Business Context: I'm assuming Kahoot's primary revenue model is B2B subscriptions for schools. Is this correct, and are there any other significant revenue streams?

Why it matters: Informs how new markets might complement or cannibalize existing revenue. Expected answer: Primarily B2B subscriptions, with some B2C elements. Impact on approach: Would shape how we position and price offerings in new markets.

• User Impact: Thinking about Kahoot's core users, how much overlap do we see between educators and corporate trainers in terms of product needs?

Why it matters: Determines the level of product adaptation needed for new markets. Expected answer: Some overlap in engagement features, but different content needs. Impact on approach: Would influence the balance between content development and feature adaptation.

• Technical: Considering Kahoot's current platform, how easily can it be adapted for corporate use cases without major architectural changes?

Why it matters: Affects the feasibility and timeline of expansion. Expected answer: Core platform is flexible, but some customization needed. Impact on approach: Would impact resource allocation between content and platform development.

• Resource: What's our current capacity for content creation versus product development? Are we constrained in either area?

Why it matters: Helps prioritize where to invest resources. Expected answer: Balanced team, but content creation might be a bottleneck. Impact on approach: Could lead to partnerships for content or focusing on platform scalability.