Business Strategy Formulation Using the Business Model Canvas: Evidence from an EdTech Startup in South Africa

Abstract

The rapid advancement of digital technology has significantly influenced the growth of educational technology (EdTech) startups, particularly in developing countries such as South Africa. Challenges related to unequal access to quality education, youth unemployment, and limited career guidance among secondary school learners have created opportunities for innovative digital education platforms. This study aims to analyze the formulation of business strategy using the Business Model Canvas (BMC) approach in the context of an EdTech startup operating in South Africa.

The research adopts a qualitative descriptive method, using interviews and document analysis to examine the nine building blocks of the Business Model Canvas, including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The findings indicate that the EdTech platform’s core value proposition—career guidance, psychometric testing, and expert consultation—addresses critical gaps faced by South African high school learners in making informed educational and career decisions.

Furthermore, the analysis highlights the importance of strategic partnerships with schools, universities, and education-related institutions, as well as the effective use of digital channels to reach a diverse and geographically dispersed market. The study concludes that the Business Model Canvas is an effective strategic tool for EdTech startups in South Africa, enabling them to create, deliver, and capture value sustainably while responding to the evolving needs of the education sector.