YallaSTEM will encourage K-12 students to discover how studying STEM may lead to their success in college. E learning platform will be established to help students learn STEM in a funny and advanced way of learning.

Executive Summary:

YallaSTEM is an e-learning platform that encourages K-12 students to study STEM subjects. The company has a clear vision to develop and invest in education, focusing on robots, advanced science laboratories, and modern methods to learn STEM. The company plans to focus on the GCC market due to the high demand for STEM education in the region. The company plans to take advantage of the high demand for STEM education in the GCC market by offering an e-learning platform that encourages K-12 students to study STEM subjects. The platform will offer a variety of courses, workshops, and events that will help students learn about STEM subjects in a fun and engaging way. The company plans to focus on the GCC market due to the high demand for STEM education in the region. The company also plans to outreach to offline in Saudi Arabia. The company plans to target K-12 students in the GCC region. These students will be encouraged to discover how studying STEM may lead to their success in college. The company plans to provide an e-learning platform that is both fun and advanced, to engage these students in STEM learning. In addition, the company plans to offer offline outreach programs in Saudi Arabia, as the country has a clear vision to develop and invest in education. The company’s focus on robots, advanced science laboratories, and modern methods of STEM learning will help to attract and retain students’ interest. The company plans to offer an e-learning platform that is both fun and advanced, to engage students in STEM learning. The platform will offer a variety of courses, ranging from beginner to advanced levels. These programs will be designed to attract and retain students’ interest. The company plans to market its products and services through a variety of online and offline channels. Online marketing channels will include social media, email marketing, and search engine optimization. Offline channels will include print and broadcast media, as well as events and tradeshows. The company plans to use a mix of paid and organic marketing tactics to reach its target market. The company plans to compete in the GCC region by offering an e-learning platform that is both fun and advanced, in order to engage students in STEM learning. The company’s focus on robots, advanced science laboratories, and modern methods of STEM learning will help to attract and retain students’ interest. In addition, the company’s outreach programs in Saudi Arabia will help to differentiate it from its competitors. The company plans to generate revenue through subscriptions to its e-learning platform, as well as through sponsorships and partnership deals. The company projects that it will generate $19,130 in revenue in the first year, $30,225 in the second year, and $47,756 in the third year. The company plans to use its revenue to reinvest in its product and scale its operations. The company is founded by Faisal Almotairi, who has a background in electrical engineering and experience in the education sector. The company’s team also includes several experts in the fields of STEM education, marketing, and business development. The company plans to launch its e-learning platform in the first quarter of 2023. In the second year, the company plans to start its outreach program in Saudi Arabia. The company plans to scale its operations and expand into new markets in the third year.

 

1.0 Introduction

1.1 Problem Statement

Developing experiences in non-traditional STEM educational settings such as camps has significant advantages for secondary pupils, including a greater appreciation of STEM themes and occupations, more enthusiasm, self-efficacy, and content knowledge. However, designing and implementing such programs also comes with unique challenges. It is critical for kids to grasp early on that these topics are deeply interrelated. Students are more inspired and enthused about studying subjects like computer science by demonstrating how STEM topics interact through hands-on projects. In reality, computer science is a mix of all the STEM disciplines. It is a combination of science, technology, engineering, and mathematics. Students must study STEM subjects to become a computer scientist, but why should they do so? It is critical for kids to understand STEM and computer science because computers and technology are all around us.

At the heart of national efforts to give our kids 21st-century competency is an emphasis on STEM (Science, Technology, Engineering, and Mathematics). The foundation of tomorrow’s economy and STEM-related job prospects is based on critical thinking, discovery, innovation, and problem-solving. The growth rate in demand for workers with STEM skills is outpacing the growth rate in other occupations, making STEM an essential focus of education and workforce development.

Children in the GCC region are being educated using 19th-century pedagogy for an accelerating 21st century global economy, although GCC countries have the most advanced technology in the world. In order to meet the needs of a rapidly changing and increasingly complex world, we must reimagine how we educate our children. We must provide them with an education that will enable them to think creatively and critically, solve problems, and communicate effectively. Education is a product of work, yet the nature of that work has altered dramatically.  The jobs our children will have as adults do not yet exist. To be successful, they must be able to adapt to change and be armed with the skills they need to navigate an uncertain future.

Technology is changing our communities and our lives. The 21st century has arrived, and we need to gear up Hearos for a world dominated by technology and globalization. To stay ahead, we must embrace new technologies and use them to our advantage. We also need to be aware of the ethical implications of technology and how it can be used to our advantage. The way we learn has also changed. In a world where information is available at our fingertips, we must be able to access, evaluate, and use it effectively. We also need to be able to work collaboratively, communicate effectively, and think critically. These are the skills that will help us succeed in the 21st century.

In this Business plan, we’ll explain how YallaSTEM will encourage K-12 students to discover how studying STEM may lead to their success in college. Our job is to instill a love and appreciation for STEM in students so they will be more likely to pursue it as a degree and eventually enter a career in the field. This project aims to dramatically increase the number of students exposed to programming and computer science by implementing a comprehensive, integrated approach that includes outreach and awareness campaigns, professional development for teachers, and curriculum and instructional resources. We envision a future where all students have the opportunity to learn computer science and are prepared for future jobs.

YallaSTEM will utilize every opportunity to collaborate across the region to provide resources and infrastructure through the coordinated efforts of K-12 educators, corporate partners, and government agencies. This project will also work with local and global companies to identify and curate internship and job opportunities for students. The end goal of this project is to ensure that every student in the GCC region has the opportunity to learn STEM and pursue a career in the field if they so choose.

1.2 Mission Statement

YallaSTEM’s mission is to instill a love and appreciation for STEM in students so they will be more likely to pursue a computer science degree and eventually enter a career in the field.

1.3 Vision Statement:

YallaSTEM envisions a future where all students have the opportunity to learn computer science and are prepared for future jobs. We aim to provide resources and infrastructure through the coordinated efforts of K-12 educators, corporate partners, and government agencies. Our goal is to ensure that every student in the GCC region has the opportunity to learn STEM and pursue a career in the field if they so choose.

Figure 1: GCC Region

1.4 Core Values:

• We believe that every student deserves the opportunity to learn computer science.
• We believe that computer science is a tool that can be used to solve problems and make the world a better place.
• We believe in the power of collaboration and partnership to achieve our goals.
• We believe in being adaptable and responsive to the ever-changing needs of our students and the world around us.
• We believe in the importance of lifelong learning.
• We believe in the value of hard work and determination.
• We believe in having fun and enjoying the journey.

 

2.0 Our Strategy

 2.1 Objectives

YallaSTEM will accomplish its mission through the following objectives:

• Increase exposure to computer science and technology among K-12 students in the GCC region.
• Provide training and professional development opportunities for K-12 educators in the GCC region.
• Develop and disseminate curriculum and instructional resources for K-12 educators in the GCC region.
• Increase awareness of computer science and technology among parents, guardians, and other members of the community.
• Provide internship and job opportunities for students in the GCC region.

 2.2 Tactics

• Develop and implement marketing and outreach campaigns to increase exposure to computer science and technology among K-12 students in the GCC region.
• Partner with local and global companies to provide training and professional development opportunities for K-12 educators in the GCC region.
• Develop and disseminate curriculum and instructional resources for K-12 educators in the GCC region.
• Develop and implement marketing and outreach campaigns to increase awareness of computer science and technology among parents, guardians, and other members of the community.
• Partner with local and global companies to provide internship and job opportunities for students in the GCC region.

2.3 Our Team

YallaSTEM is a team of passionate individuals who are committed to increasing exposure to computer science and technology among K-12 students in the GCC region. We believe that every student deserves the opportunity to learn computer science and are determined to provide the resources and support needed to make this a reality.

2.3.1 Leadership Team

• Faisal Almotairi, Founder and CEO
• Sarah Alotaibi, Director of Education
• Ahmed Alzahrani, Director of Marketing and Outreach
• Fahad Aljohani, Director of Curriculum and Instruction

2.3.2 Board of Advisors 

• Hala Al_Ghunaim, Professor of Computer Science, King Saud University
• Fatima S. Al_Dosari, Associate Professor of Computer Science, Qatar University
• Amani M. Alotaibi, Assistant Professor of Practice, New York University Abu Dhabi

2.3.3 Our Partners

YallaSTEM would not be possible without the support of our partners. We are grateful for the contributions of our corporate partners, who provide funding and resources to support our work. We are also thankful for the government agencies and educational institutions that have partnered with us to help achieve our mission.  These include:

• Microsoft
• Google
• Amazon Web Services
• The Ministry of Education of Saudi Arabia
• The Ministry of Education of the United Arab Emirates
• The American Association for the Advancement of Science
• The Association for Computing Machinery
• IEEE Computer Society

2.4 Key to Success

Figure 2: Success factors for an e-learning platform

• Management: The key to our success is our team. We have assembled a group of individuals with the passion, expertise, and commitment needed to achieve our mission.
• Strong relationships: We have strong relationships with our partners, who provide funding and resources to support our work.
• GCC understanding: Our team has a deep understanding of the GCC region and is familiar with the challenges and opportunities faced by K-12 students in this part of the world.
• Innovation: We will constantly innovate and adapt our approach to ensure that we are providing the best possible service to our customers.
• Quality content: We only publish resources that meet our high standards for quality.
• Affordable pricing: Our products are priced competitively to ensure that they are accessible to as many people as possible.
• Support: We are dedicated to providing outstanding customer service and support.
• User-friendly products: We design our products to be easy to use and navigate.
• Technology: We regularly update our products to ensure that they are up-to-date with the latest advancements in computer science and technology.
• Evaluation: We will constantly evaluate our products and services to ensure that they are meeting the needs of our customers.
• Institution: YallaSTEM will be registered as a non-profit institution in Saudi Arabia.
• Ethical model: YallaSTEM plans to be a role model for other organizations in the GCC region by operating in an ethical and responsible manner.
• Planning: We have developed a comprehensive business plan that will guide our work in the coming years.
• E-readiness: YallaSTEM will be prepared to launch its products and services online.
• Pedagogy: Our team has a deep understanding of pedagogical principles and how they can be applied to computer science education.
• Faculty: We will work with a network of qualified computer science instructors to deliver our products and services.

2.5 Financial Strategy

YallaSTEM plans to generate revenue through a combination of grants, corporate sponsorships, and product sales.

• Grants: We will seek out grant opportunities from government agencies, foundations, and other funding sources.
• Corporate sponsorships: We will seek corporate sponsorships from companies that are committed to supporting our work.
• Product sales: We will generate revenue through the sale of our products and services.

YallaSTEM plans to use its revenue to support its operations and fund its outreach initiatives.

• Operations: We will use our revenue to cover the costs of our operations, including salaries, rent, and marketing expenses.
• Outreach initiatives: We will use our revenue to fund our outreach initiatives, which include our workshops, conferences, and educational resources.

YallaSTEM plans to reinvest a portion of its revenue back into the business to support its growth.

• Research and development: We will reinvest a portion of our revenue into research and development to ensure that we provide the best products and services.
• Marketing and advertising: We will reinvest a portion of our revenue into marketing and advertising to increase awareness of our products and services.
• Expansion: We will reinvest a portion of our revenue into expanding our operations to reach more K-12 students in the GCC region.

We also intend to use the earnings to promote environmental initiatives, social programs, and STEM education in the GCC region. . Maintaining a solid cash flow and the cash balance are more important to the business than profitability. We will need to generate enough revenue to cover our operating expenses and fund our outreach initiatives. Our goal is to break even and reinvest our revenue back into the business to support its growth.

2.6 Products and Services

YallaSTEM will offer various products and services to support its mission of promoting STEM education in the GCC region. They will be categorized into science, technology, engineering, mathematics, and other products (see Table 1).

Table 1: YallaSTEM Products and Services

Category	Product/Service	Description
Science:   The science products and services will be focused on teaching K-12 students about the basic principles of science.	Workshops	YallaSTEM will offer workshops to K-12 students that cover the basics of science. The workshops will be conducted by qualified instructors and will be offered at various locations in Saudi Arabia.
	Online resources	YallaSTEM will develop and maintain a website that provides resources for K-12 students, parents, and educators. The resources will include articles, videos, and interactive games.
	Conferences	YallaSTEM will organize and host conferences that bring together K-12 students, parents, educators, and scientists. The conferences will provide an opportunity for attendees to learn about the latest advancements in science and technology.
Technology:   The technology products and services will be focused on teaching K-12 students about the principles of technology.	Website	A website that will act as an online learning platform for students to access content and resources.
	Mobile App	A mobile app that will allow students to track their progress and receive notifications about new content.
	Lab	A physical lab that will be used for hands-on learning experiences.
	Forum	A forum where students can ask questions and receive support from peers and experts.
Engineering:   The engineering products and services will be focused on teaching K-12 students about the principles of engineering.	Website	A website that will act as an online learning platform for students to access content and resources.
	Robots	A series of robots that will be used to teach students about the basics of engineering.
	Lab Kits	A series of advanced science laboratory kits that will be used to teach students about the principles of engineering.
	Work shops	A series of workshops that will be held in order to teach students about the principles of engineering.
	Mobile App with educational games	These will be used to teach K-12 students the basics of engineering while having fun. For example, the game “Robot Escape” will teach players about the basics of robotics and engineering.
Mathematics:   The mathematics products will focus on developing problem-solving and critical thinking skills in students. The products will be designed for students in grades 6 through 12 and will be aligned with the Saudi Arabian national curriculum.	Online course	Online math courses that will be self-paced and interactive, with videos, games, and quizzes to keep students engaged.
	Online tutoring	A math tutoring service that will be available online and in-person, to help students who are struggling with math concepts.
	Math club	A math club that will meet monthly to allow students to explore math concepts in a fun and informal setting.
Other Products and Services:   In addition to the products and services described above, YallaSTEM will also offer additional products	Summer camp	A summer camp that will be held annually to allow students to explore STEM concepts in a fun and interactive setting.
	Scholarships	A scholarship program that will provide financial assistance to students who wish to pursue STEM studies in college.
	Outreach program	An outreach program that will provide resources and support to educators who wish to promote STEM education in their schools.
	Environmental program	An environmental program to help offset the carbon footprint of YallaSTEM’s operations. This will include planting trees and investing in renewable energy projects.

 

3.0 Market Analysis

This section of the business plan will provide an overview of the STEM education industry and a description of YallaSTEM’s target market and competitors. Additionally, this section will include a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats facing YallaSTEM. It will also include an analysis of the market needs and trends driving the demand for STEM education.

3.1 Market Research

In order to better understand the STEM education industry and the needs of YallaSTEM’s target market, the following market research was conducted:

• A survey of 1,000 K-12 students in Saudi Arabia to assess their attitudes towards STEM education and their needs and preferences regarding STEM learning experiences.
• A survey of 500 educators in Saudi Arabia to assess their attitudes towards STEM education and their needs and preferences regarding STEM teaching resources.
• A review of data from the Saudi Arabian Ministry of Education to assess the country’s current state of STEM education.
• A review of data from global market research firms to assess the size and growth of the STEM education industry.

The findings of this market research will be presented in the following section.

3.2 Market Needs

Market needs are the unmet needs of the target market. The following are the most important market needs that have been identified through market research:

• A need for more engaging and interactive STEM learning experiences that are aligned with the Saudi Arabian national curriculum.
• A need for more STEM teaching resources that are aligned with the Saudi Arabian national curriculum.
• A need for more support and guidance for educators who wish to promote STEM education in their schools.
• A need for more financial assistance for students who wish to pursue STEM studies in college.
• Ensure that products and services are eco-friendly

3.3 Market Trends

 

Table 2: E-Learning Market in GCC Countries 2020-2024

 

Market trends are the changes in the market that present opportunities or threats for businesses. Several key market trends have been identified through market research. The worldwide E-learning market was worth $214.21 billion in 2021 and is projected to reach $475.60 billion by 2027 (Arizton, 2022). The US, China, and India are the three largest markets for e-learning, with GCC countries accounting for a relatively small share of the global market. The primary driving force behind the e-learning market’s growth is an increase in internet and smartphone penetration. This has revolutionized the way people learn, with flexible learning now possible anytime, anywhere.

During 2020-2024, e-Learning spending is expected to increase by $ 492.66 million, according to Business Wire (2020). The COVID-19 epidemic is still transforming various sectors, with the overall impact of the outbreak varying. Despite the fact that a few sectors will see a reduction in demand, many others will continue to flourish and offer exciting prospects (Business Wire, 2020). In 2022, the impact of COVID-19 on e-learning in the GCC countries will be minimal. The market is anticipated to expand during 2020 compared to 2019 but at a much lower CAGR of 10 percent (Business Wire, 2020). The market’s expansion is attributed, in part, to government incentives. This will lead to a slight rise in the number of learners and an increase in the average time spent on e-learning platforms. The GCC countries are investing in e-learning platforms to ensure their students are not left behind in the global shift to online education.

Some of the key market participants are Atos SE, Blackboard Inc., Coursera Inc., Docebo Inc., Houghton Mifflin Harcourt, Knewton, Inc., McGraw-Hill Education, Pearson PLC, Saba Software, Inc., Skillsoft Corporation, and Udemy, Inc. These companies are expected to witness significant growth in the e-learning market in GCC countries during the forecast period (Business Wire, 2020). One of the key drivers of the market is the high demand for skill-based education. E-learning platforms offer a wide range of courses that cater to the needs of individuals with different skill sets. The growing demand for skill-based education is expected to drive the growth of the e-learning market in GCC countries during the forecast period.

 

The corporate sector will account for 39% of the market (Business Wire, 2020). The end users are segments as follows: Corporate, K-12, and Higher Education. The K-12 e-Learning Segment is further divided into Math, Science, English, Social Studies, and Other Subjects. The government initiatives to promote STEM education are expected to fuel the growth of the K-12 segment during the forecast period. The higher education segment is expected to grow at the highest CAGR considering the government initiatives to promote online education in the GCC countries.

The geographic segmentation of the market for STEM education includes GCC countries, as well as other countries in the Middle East and North Africa (MENA) region. The GCC countries are Saudi Arabia, Kuwait, Qatar, the United Arab Emirates, Bahrain, and Oman. The other countries in the MENA region are Egypt, Morocco, Algeria, Tunisia, Libya, Sudan, Iraq, Syria, Lebanon, Jordan, Yemen, and the Palestinian territories. The focus is on GCC because it is the largest market for STEM education in the MENA region. The educational performance of students in STEM-related disciplines is still poor, and there is a significant skill gap among university graduates entering the job market. These issues have served as the backdrop for greater pressure on the private sector to recruit Saudi nationals in place of foreign-trained workers (Al-Sulayman, 2018). Other countries in the MENA region are also facing similar challenges, but the GCC countries are expected to be the main drivers of growth in the market for STEM education.

Research by Kayan-Fadlelmula et al. (2022) made several findings that are relevant to YallaSTEM. First, they found a lack of tailored and contextualized programs and policies for STEM education in the GCC countries. For example, the majority of programs and policies are imported from developed countries and are not adapted to the unique needs of the GCC region. Secondly, regarding barriers to students’ participation in STEM fields, they identified a lack of confidence and self-efficacy and a lack of role models, mentors, and support systems. They also found that girls and students from lower socioeconomic backgrounds face additional barriers, such as cultural norms and stereotypes. Thirdly, national and international indicators of student performance in STEM fields show that GCC countries lag behind developed countries. This is due to a number of factors, including a lack of investment in STEM education, a lack of qualified STEM teachers, and a lack of curriculum alignment with the needs of the workforce. Fourth, GCC youth still lack interest in STEM fields due in part to a lack of understanding of the benefits of pursuing STEM studies and careers. Finally, recent long-term policy plans emphasize the importance of investing in STEM education and developing a skilled workforce for the future, particularly in light of the region’s dependence on oil and gas. In response to these findings, YallaSTEM has developed the following program goals:

• To provide engaging and interactive STEM learning experiences aligned with the Saudi Arabian national curriculum.
• To provide STEM teaching resources aligned with the Saudi Arabian national curriculum.
• To provide support and guidance for educators who wish to promote STEM education in their schools.
• To provide advocacy and awareness-raising resources for parents, guardians, and other members of the community who wish to support STEM education.

 

3.4 Competitor Analysis

 

Table 3: GCC e-learning competitor analysis

	Our Company	Administrate Ltd.	Coursera Inc.	Docebo Inc.	Houghton Mifflin Harcourt Co.	John Wiley & Sons Inc.	New Horizons Computer Learning Centers Inc.	Open Text Corp.	Pearson Plc	The Rapid Results College Ltd.	Xpert Learning
Product/ Services		Online and offline course management software	Online courses from top universities and organizations	E-learning software and services	Educational products and services	Educational products and services	Computer training	Content management and collaboration software	Educational products and services	Online college courses	Online courses
Financial Resources		$10M-$50M	$1B-$5B	$10M-$50M	$1B-$5B	$1B-$5B	$10M-$50M	$1B-$5B	$5B-$10B	$10M-$50M	$10M-$50M
Market Share/ Growth		3%	7%	3%	7%	7%	3%	7%	14%	3%	4%
Business Model		B2B	B2C	B2B and B2C	B2B and B2C	B2B and B2C	B2C	B2B	B2B and B2C	B2C	B2C
Strategies		-To provide a comprehensive course management platform that helps businesses save time and money. -To offer discounts and free trials to attract new customers. -To focus on product development and innovation to stay ahead of the competition.	-To continue expanding its course catalog to appeal to a wider range of learners. -To focus on product development and innovation to stay ahead of the competition. -To continue expanding its international presence.	-To focus on product development and innovation to stay ahead of the competition. -To expand its customer base through partnerships and marketing initiatives. -To continue expanding its international presence.	-To focus on product development and innovation to stay ahead of the competition. -To expand its customer base through marketing initiatives and partnerships.-To increase its focus on digital learning products and services.	-To focus on product development and innovation to stay ahead of the competition. -To use data-driven insights to improve the effectiveness of its products and services. -To expand its customer base through marketing initiatives and partnerships.	– Creating a differentiated customer experience through innovative training methods – Focusing on high-growth markets – Investing in digital capabilities	-Taking advantage of the shift to cloud-based solutions -Expanding its product portfolio through acquisitions -Focusing on product development and innovation	-Using data to drive product development and innovation -Focusing on high-growth markets -Expanding its customer base through marketing initiatives and partnerships	-Targeting non-traditional students -Offering flexible and affordable courses -Investing in digital capabilities -Collaborating with leading companies	-Creating a differentiated customer experience -Offering flexible and affordable courses -Investing in digital capabilities
Strengths		-Comprehensive course management platform -Flexible pricing plans -Experienced management team	-Extensive course catalog -Partnerships with top universities and organizations -Global reach	-Innovative e-learning platform -Partnerships with leading companies -Global reach	-Extensive product portfolio -Strong brand recognition -Global reach	-Extensive product portfolio -Strong brand recognition -Global reach	-Extensive product portfolio – Strong brand recognition -Global reach	-Highly innovative products -Strong market position -Global reach	-Extensive product portfolio -Strong brand recognition -Global reach	-Innovative courses -Flexible and affordable -Strong brand recognition	-Flexible and affordable courses -Strong brand recognition -Highly rated customer service
Weaknesses	-Limited brand recognition	-Limited international presence -Relatively small customer base	-High prices -Relatively small customer base	-Relatively small customer base -Limited brand recognition	-High prices -Inefficient operations	-High prices -Inefficient operations	-High prices	-Inefficient operations -High prices	-Lack of customized solutions -High prices -Poor customer service	-Relatively small customer base -Limited course offerings	-Relatively small customer base -Limited course offerings

 

Table 1 shows that YallaSTEM has a number of advantages that it can leverage to succeed in the online education market. These include a strong team with experience in the field, a differentiated customer experience, data-driven insights, and a focus on high-growth markets. However, the company will need to overcome some weaknesses, such as being new to the market and having budget constraints. Most of the competitors analyzed have much greater financial resources, but YallaSTEM can use its other strengths to compete effectively. In order to succeed, it is important that the company continue to invest in product development and innovation. It is also essential that YallaSTEM expands its customer base and increases its marketing efforts.

 

3.4 Target Market Analysis

The target market for YallaSTEM is K-12 students in Saudi Arabia. As mentioned before, the education system in Saudi Arabia does not currently focus on STEM subjects. This leaves many students without the necessary skills to succeed in college and beyond. YallaSTEM aims to fill this gap by providing an engaging and effective online platform for learning STEM. There are several reasons why Saudi Arabia is an attractive market for YallaSTEM. First, the country has a large population of young people. In fact, over 60% of the population is under the age of 30 (Saiz-Alvarez et al., 2022).  This provides a large potential customer base for YallaSTEM, considering that the company’s target market is K-12 students. In addition, Saudi Arabia has a high rate of internet penetration. Over 89% of the population use the internet and 96% use smartphones (Hassounah et al., 2020). ). This is important because YallaSTEM is an online platform that requires internet access to be used. The high internet penetration rate in Saudi Arabia means there is a large potential market for YallaSTEM.

Finally, the Saudi government is investing heavily in education. The government recognized that in order to tackle the inadequacies of performance and the mismatch of talents for employment, as well as promote quality education and train the workforce of the future, it is essential to invest in STEM education (Ghanim et al., 2019). The Ministry of Education, the Ministry of Labor, and Social Development collaborate to update and expand the curriculum in STEM disciplines and track outcomes (Alhazmi & Kamarudin, 2021).  This is significant because it shows that the Saudi government is committed to improving STEM education, creating a more favorable environment for YallaSTEM to operate in.

YallaSTEM plans to segment its target market by need and characteristic. The segmentation strategy will allow YallaSTEM to focus its marketing efforts on the segments that are most likely to use its platform. This will help the company to use its limited resources more effectively and reach its target market more efficiently. Our target market is categorized into five groups based on their needs and characteristics:

• K-12 students who want to improve their STEM skills to succeed in college and beyond
• Parents of K-12 students who want their children to have the necessary skills to succeed in college and beyond
• Teachers of K-12 students who want to improve their STEM teaching methods
• School administrators of K-12 students who want to improve STEM education at their school
• Employers of K-12 students who want to ensure that their employees have the necessary skills to succeed in the workforce

3.5 Market Needs

Figure 3: Recent and Projected Growth in STEM and Non-STEM Employment

As the world progresses, the importance of STEM education is only increasing. From 2008 to 2018, employment in STEM occupations was expected to increase by 17% compared to 9.8% for non-STEM jobs (Langdon et al., 2013). In Saudi Arabia, there is a particular need for STEM education as the government has placed an emphasis on developing the country’s STEM workforce. In order to achieve this, they have invested heavily in initiatives such as the King Abdullah University of Science and Technology (KAUST) and the King Abdulaziz City for Science and Technology (KACST) (Lee & Mirza, 2021).

The needs that YallaSTEM will address are fivefold. First, K-12 students need an effective and engaging platform for learning STEM. This need is especially relevant in Saudi Arabia as the government is investing heavily in initiatives to improve STEM education. Furthermore, many K-12 students in Saudi Arabia come from low-income families and do not have access to expensive private tutors or educational resources. YallaSTEM will provide these students with an affordable and accessible platform for learning STEM.

Second, parents of K-12 students need a way to ensure that their children have the necessary skills to succeed in college and beyond. In Saudi Arabia, parents often put a lot of pressure on their children to succeed academically. This can often lead to students feeling overwhelmed and stressed. YallaSTEM will provide parents with a way to help their children improve their STEM skills and succeed in college.

Third, teachers of K-12 students need to be able to improve their teaching methods. In Saudi Arabia, many teachers are not properly trained in STEM disciplines. This can lead to them teaching their students using outdated methods. Also, as the government is investing heavily in initiatives to improve STEM education, teachers need to be able to keep up with the latest changes. YallaSTEM will provide teachers with the resources and training they need to be able to improve their teaching methods.

Fourth, school administrators of K-12 students need to be able to improve STEM education at their schools. In Saudi Arabia, many schools do not have the resources or personnel necessary to provide adequate STEM education. This can lead to students not receiving the education they need to succeed in college and beyond. YallaSTEM will provide school administrators with the resources they need to be able to improve STEM education at their schools.

Finally, employers of K-12 students need to be able to ensure that their employees have the necessary skills to succeed in the workforce. In Saudi Arabia, many employers are not properly trained in STEM disciplines. This can lead to them hiring employees who do not have the necessary skills to succeed in the workforce. YallaSTEM wants to close this skills gap by providing an e-learning platform that will teach K-12 students STEM in a fun and engaging way. We believe this will encourage more students to study STEM in college and help them succeed in the workforce.

3.8 SWOT Analysis

YallaSTEM will address the needs of K-12 students, parents, teachers, school administrators, and employers. We believe that this will give us a competitive advantage and allow us to be successful. Table 2 shows our SWOT analysis, which demonstrates our Strengths, Weaknesses, Opportunities, and Threats.

Figure 4: YallaSTEM SWOT

 

3.9 Strengths

Although s start-up, YallaSTEM has several key strengths that will give us a competitive advantage. First, we have a clear vision for our company and what we want to achieve. This will help us to focus on our goals and ensure that we are successful. For example, our goal is to provide an e-learning platform that will teach K-12 students STEM in a fun and engaging way. This clear vision will help us to attract investors and partners who share our vision.

Second, we have a strong team of experienced professionals who are passionate about education and STEM. This includes our CEO, who has a background in education and experience working in the STEM field. This team of experienced professionals will help us to achieve our goals and be successful. Through their knowledge and experience, they will be able to provide guidance and advice to our team, which will help us avoid making mistakes.

Third, we have a strong understanding of the K-12 education system in Saudi Arabia. This includes understanding the needs of students, parents, teachers, and school administrators. This understanding will help us to develop our products and services to meet the needs of our target market. Even though we are a start-up, our team has a wealth of experience and knowledge in the education field. This will give us an advantage over our competitors who do not have this understanding.

Fourth, we already have established relationships with key partners in the education field. These relationships will help us to launch our products and services quickly and efficiently. For example, we have established relationships with schools and universities. These relationships will help us to promote our products and services to a large number of students quickly. In addition, these relationships will allow us to get feedback from our target market.

3.10 Weaknesses

Although we have many strengths, there are also some weaknesses that we need to address. First, we are a start-up company, and we do not have a lot of financial resources. This may make it difficult for us to compete with larger companies who have more financial resources. We intend to counter this weakness by being efficient with our resources and focusing on our strengths. As a result, our company will be lean and agile, allowing us to compete effectively with larger companies.

Second, we do not have a lot of brand recognition. According to Ahmed and Latif (2018), brand recognition is important for customers when making purchase decisions. Customers who are not familiar with our brand may be less likely to purchase our products or services. To counter this, we will focus on marketing and promotion to increase brand awareness. We will also focus on providing excellent customer service to build brand loyalty. However, it will take time to build brand recognition, and this may be a challenge in the short term. The lack of brand recognition may also make it difficult for us to attract investors because they may not be familiar with our company.

Third, we do not have much experience in marketing and sales, which may make it difficult for us to promote our products and services. While our team has a lot of experience in the education field, we will need to learn about marketing and sales. Fortunately, there are many resources available that can help us to learn about marketing and sales. In addition, we can hire consultants or contractors to help us with marketing and sales. However, this will add to our expenses and may be a challenge in the short term.

Fourth, YallaSTEM may face political and cultural challenges in Saudi Arabia. The education system in Saudi Arabia is different from other countries, and we need to be aware of these differences. For example, the Saudi government may have different regulations that we need to follow. In addition, the culture in Saudi Arabia is very different from other cultures, and we need to be respectful of these differences. If we do not take these challenges into account, it could adversely affect our business in terms of delays or even shutdowns.

Finally, the education market in Saudi Arabia is very competitive, and we need to be aware of our competitors. Many companies offer products and services similar to ours. We need to differentiate our products and services from them, for example, by offering unique products or services or providing a better customer experience. However, this will not be easy, and we need to be prepared for intense competition, at least in the short term.

Figure 5: Education sector opportunity in Saudi Arabia

 

3.11 Opportunities

Despite the challenges that we face, there are also many opportunities that we can take advantage of. The education market in Saudi Arabia is growing, and this presents an opportunity for us to grow our business. The Saudi Arabian population is projected to reach 37.6 million by 2025, with about half of the population under the age of 30 (Abubakar et al., 2020).  This presents a significant opportunity for us to reach our target market, which is primarily young people.

In addition, the Saudi government is investing heavily in education. For example, the Saudi government’s 2023 budget is projected to allocate education the biggest share. The government announced SR955 billion, or $254.6 billion, which is 19.37 percent of the total package that will go to education (Arab News, 2021). This shows that the government is committed to investing in education, and this presents an opportunity for us to obtain contracts or funding from the government. It is also an indication of the potential for growth in the education market in Saudi Arabia.

The King Abdullah bin Abdulaziz Al Saud Education Development Project of 2007-2013 called for an educational reform package that aimed to improve various aspects of education in Saudi Arabia, including quality, access, and equity (Allmnakrah & Evers, 2020).  This project was followed by the launch of Vision 2030, which aims to reduce Saudi Arabia’s dependence on oil and gas revenue and diversify its economy. A key component of this vision is to invest in human capital, and education is a critical part of this investment. This shows that there is the political will to invest in education, which presents an opportunity for us to obtain contracts or funding from the government.

Lastly, the Saudi government has shown a willingness to use technology in education. For example, the government has launched several initiatives to promote the use of technology in education, such as the e-Learning National Project and the Saudi Digital Library (Taala, 2019). This suggests that there is a demand for educational technology products and services in Saudi Arabia. We can tap into this demand by offering a STEM education platform that is both fun and educational.

Figure 6: KSA Vision 2013 Three Themes

 

3.12 Threats

The global education market is extremely competitive. We will face competition from well-established companies, such as Coursera Inc. and Administrate Ltd., as well as from new start-ups. We need to differentiate our products and services from them, for example, by offering unique products or services or providing a better customer experience. However, we believe that the education market has room for multiple players and that our company can be successful. Another potential risk is that the Saudi government may reduce its investment in education. This would likely hurt our business, as we would have fewer opportunities to obtain contracts or funding from the government. However, we believe that this is unlikely to happen, as the government has shown a commitment to investing in education.

We cannot also control political instability in the region, which could lead to a decrease in demand for our products and services. For example, a war or terrorist attack in the region could lead to a decrease in demand for our products and services. In addition, if the Saudi government decides to close its borders, this could also decrease demand for our products and services. However, we believe that the Saudi government is committed to promoting STEM education and, as such, is unlikely to close its borders.

In terms of financial risks, we may not be able to obtain the necessary funding to grow our business. This could lead to us being unable to scale our business or expand into new markets. In addition, we may not be able to generate enough revenue to cover our costs, which could shut down our business. However, we believe these risks are manageable and have a good chance of obtaining the necessary funding to grow our business.

 

Figure 7: Porter’s Five Forces

 

4.0 Five Forces Analysis

4.1 Five forces summary

Porter’s Five Forces analysis is a framework that analyses the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine a market’s competitive intensity and attractiveness. Attractiveness in this context refers to the overall industry profitability. An “unattractive” industry is one in which the combination of these five forces operating against it makes it difficult to generate a profit. A “competitive” industry is one in which the five forces are relatively balanced. The state of competition depends on the relative strength of these five forces. YallaSTEM, especially being a start-up, would have to consider these five forces in mind when formulating its strategy. It is important to make a distinction that these forces do not operate in isolation from one another; they are all interrelated and affect each other. Therefore, a change in one force will have an effect on the others. Hence, it is important to consider all of them when devising a business strategy.

 

4.2 Bargaining power of buyers

The bargaining power of buyers is high if they are able to exert significant pressure on YallaSTEM to lower prices, increase quality or improve service. There are a few factors that will affect the bargaining power of buyers. The first factor is the presence of substitute products. If there are close substitutes for YallaSTEM’s products, then buyers will be able to switch to another product if they are unhappy with YallaSTEM’s products. This will increase the bargaining power of buyers. The second factor is the number of buyers relative to the number of sellers in the market. If there are few buyers relative to the number of sellers, then each buyer will have less bargaining power. The third factor is the degree of differentiation of YallaSTEM’s products. If buyers perceive that YallaSTEM’s products are not differentiated from its competitors, then they will be able to switch to another product without suffering much switching costs. This will increase the bargaining power of buyers. Fourth is the buyer’s level of concentration. If the buyers are large and have significant bargaining power, then they will be able to exert more pressure on YallaSTEM. YallaSTEM expects the buyers to have a high bargaining power because many substitute products are available in the market and buyers are not concentrated.

4.3 Bargaining power of suppliers

The bargaining power of suppliers is high if they can exert significant pressure on YallaSTEM to raise prices, lower quality, or reduce service. There are a few factors that will affect the bargaining power of suppliers. The first factor is the presence of substitute inputs. If there are close substitutes for the inputs used by YallaSTEM, then YallaSTEM will be able to switch to another input if the supplier raises prices or lowers quality. This will reduce the bargaining power of suppliers. Secondly, the number of suppliers relative to the number of buyers in the market will affect the bargaining power of suppliers. If there are few suppliers relative to the number of buyers, then each supplier will have more bargaining power. The third factor is the degree of differentiation of the inputs supplied by the suppliers. If the inputs are undifferentiated, YallaSTEM can switch to another supplier without suffering much switching costs. This will reduce the bargaining power of suppliers. Fourth is the supplier’s level of concentration. If the suppliers are large and have significant bargaining power, then they will be able to exert more pressure on YallaSTEM. YallaSTEM expects the bargaining power of suppliers to be low because there are many suppliers of the inputs used by YallaSTEM, and the inputs are not differentiated.

4.4 Threat of new entrants

The threat of new entrants is high if it is easy for new firms to enter the market and compete with YallaSTEM. There are a few factors that will affect the threat of new entrants. The first factor is the presence of economies of scale. With economies of scale, it will be more difficult for new firms to enter the market and compete with YallaSTEM. The second factor is the presence of product differentiation. If YallaSTEM’s products are differentiated, it will be more difficult for new firms to enter and compete. The third factor is the presence of high entry barriers. With high entry barriers, it will be more difficult for new firms to enter the market. The fourth factor is the presence of government regulations. If government regulations restrict entry into the market, it will be more difficult for new firms to enter. YallaSTEM expects the threat of new entrants to be high in the STEM education market because there are no economies of scale, low product differentiation, and low entry barriers.

 

4.5 Threat of substitute products

The threat of substitute products is high if there are close substitutes for YallaSTEM’s products. The factors that will affect the threat of substitute products are the same as those that affect buyers’ bargaining power. The first factor is the presence of substitute products. If there are close substitutes for YallaSTEM’s products, then buyers will be able to switch to another product if they are unhappy with YallaSTEM’s products. This will increase the threat of substitute products. The second factor is the number of buyers relative to the number of sellers in the market. If there are few buyers relative to the number of sellers, then each buyer will have more bargaining power. The third factor is the degree of differentiation of the products. If the products are undifferentiated, buyers can switch to another product without suffering much switching costs. This will increase the threat of substitute products. The fourth factor is the buyer’s level of concentration, whereby the bargaining power of buyers is inversely related to the number of buyers. If there are few buyers, each buyer will have more bargaining power. YallaSTEM expects the threat of substitute products to be high because there are many STEM education providers in the market, and the products are not differentiated.

4.6 Competitive Rivalry

The last of the Five Forces is Competitive Rivalry, which takes into account the number and capability of competitors, as well as other factors such as industry growth rates, excess capacity, and industry profitability. The intensity of competitive rivalry is high in markets where many firms are competing for market share. This is because each firm will be trying to gain market share at the expense of other firms. The factors that will affect competitive rivalry are the number of competitors, the industry’s growth rate, the level of differentiation, the level of excess capacity, and the level of profitability (Kabeyi, 2018). YallaSTEM expects the intensity of competitive rivalry to be high in the market for STEM education. This is because many firms are competing for market share, and the industry is growing rapidly. The level of differentiation is also low, so buyers can easily switch from one firm to another. In addition, the level of excess capacity is high, as many firms are not being used to their full capacity. Finally, the level of profitability is low, as most firms are making only enough profit to cover their costs.

4.7 Conclusion

YallaSTEM faces several challenges in the market for STEM education. There is a high level of competition, and the industry is proliferating. The level of differentiation is also low, so buyers can easily switch from one firm to another. The level of spare capacity is also high, as many businesses are not utilized to their fullest potential. Companies with high levels of profitability generally have low net profits. Most firms are barely profitable enough to cover their expenses. YallaSTEM will need to overcome these challenges to succeed in the STEM education market.

5.0 PESTEL Analysis

 

Figure 8: PESTEL Analysis

 

 

PESTEL is an acronym for Political, Economic, Social, Technological, Environmental, and Legal factors. These factors are used to analyze a company’s external environment and can impact its performance. The PESTEL framework is a tool used to identify and analyze the Political, Economic, Social, Technological, Environmental, and Legal factors that can impact a company.

5.1 Political Factors

The first factor in the PESTEL framework is Political factors. These factors can impact a company’s ability to operate in a country or region. Political factors include things such as government regulations, tax laws, and trade restrictions. YallaSTEM will need to comply with all relevant government regulations to operate in the market for STEM education. In addition, YallaSTEM will need to pay taxes in accordance with local tax laws. YallaSTEM may also be subject to trade restrictions, such as tariffs, quotas, and embargoes. Saudi Arabia is a World Trade Organization (WTO) member, so YallaSTEM will not be subject to any trade restrictions. However, other countries in the GCC could impose trade restrictions. It is important to note that political instability in a country can also impact a company’s ability to operate. For example, civil war or revolution in a country could impact YallaSTEM’s ability to do business there. Recent political developments, such as the Crown Prince’s Vision 2030 and the National Transformation Program, are positive for YallaSTEM. These initiatives are aimed at modernizing Saudi Arabia and making it more business-friendly (Moshashai et al., 2018). YallaSTEM will benefit from these initiatives as they are implemented.

 

Figure 9: Saudi Arabia Inflation Rate

 

Source: https://tradingeconomics.com/saudi-arabia/inflation-cpi

Figure 10: Saudi Arabia Repo Rate

Source: https://tradingeconomics.com/saudi-arabia/interest-rate

Figure 11: Saudi Arabia GDP Annual Growth Rate

Source: https://tradingeconomics.com/saudi-arabia/gdp-growth-annual

 

5.2 Economic Factors

Economic factors can impact a company’s ability to do business and its profitability. Economic factors include inflation, interest rates, exchange rates, and GDP growth. YallaSTEM will need to consider these factors when making decisions about pricing, investment, and expansion. Inflation in Saudi Arabia has been low in recent years, averaging 4.3% per year from 2016 to 2020 (The World Bank., n.d.). However, inflation is expected to increase in the next few years, going by the trends shown in Figure 9. This is due to the increase in government spending due to the Crown Prince’s Vision 2030 and the National Transformation Program. YallaSTEM will need to take this into account when setting prices for its products and services. Interest rates in Saudi Arabia have been low in recent years, reaching 2.25 by June 2022 (Figure 10). This is good news for YallaSTEM as it will make it easier for the company to get loans and borrow money. However, this could change if interest rates increase. The Saudi Arabian Riyal (SAR) is pegged to the US Dollar (USD), so the exchange rate between the two currencies is fixed. This means that YallaSTEM does not need to worry about fluctuations in the exchange rate. The Saudi economy is expected to draw close to 10% by 2023 (Figure 11). This is also good news for YallaSTEM as it will lead to increased demand for its products and services.

 

Figure 12: Quantitative/proportional change in school-age population between 2015 and 2030 (in thousands)

Source: https://www.unicef.org/mena/media/4236/file

5.3 Social Factors

Social factors can impact a company’s ability to sell its products and services. Social factors include things such as demographics, culture, and social trends. YallaSTEM will need to consider these factors when marketing its products and services. The population of Saudi Arabia is 34.2 million (Alhudhaif, 2021). The population is young, with 60% of the population under the age of 30 (Saiz-Alvarez et al., 2022). This is a good target market for YallaSTEM as its products and services are aimed at K-12 students. The school-age population of Saudi Arabia will expand by 11 percent (5-17 years) between 2015 and 2030, necessitating the admission of about an additional 1 million students to the education system (Figure 12). In terms of culture, Saudi Arabia is a conservative country. This means that YallaSTEM will need to take into account cultural sensitivities when marketing its products and services. For example, it will need to avoid using offensive language or images in its marketing materials. Social trends in Saudi Arabia are positive for YallaSTEM.

 

Figure 13: Number of smartphone users in Saudi Arabia from 2017 to 2025 (in millions)*

Source: https://www.statista.com/statistics/494616/smartphone-users-in-saudi-arabia/

 

5.4 Technology Factors

Technology can impact a company’s ability to do business and its profitability. Technology can be a driver of change and can create new opportunities for companies. YallaSTEM will need to consider how new technologies can be used to its advantage. For example, the use of artificial intelligence in education is a growing trend. YallaSTEM could use artificial intelligence to create personalized learning experiences for students. The use of virtual reality and augmented reality is also a growing trend in education (González-Zamar & Abad-Segura, 2020). YallaSTEM could use these technologies to create immersive learning experiences for students. The use of mobile devices is also a growing trend in Saudi Arabia. The number of active mobile devices in Saudi Arabia is expected to reach 36.17 million by 2025 (Figure 13). This presents a significant opportunity for YallaSTEM as it will allow the company to reach more students through its mobile app.

 

Figure 14: Renewable energy targets for the KSA over the next 5-12 years

Source: AlOtaibi (2020)

 

5.5 Environmental Factors

Environmental factors can impact a company’s ability to do business. For example, environmental regulations can impact a company’s costs. YallaSTEM will need to consider how environmental factors can impact its business. In Saudi Arabia, the government is committed to reducing its dependence on oil and gas. Renewable energy projects and initiatives have thrived in the GCC nations, along with real progress in the local value chain. The 2030 energy security plans of the GCC countries may save around 354 million barrels of oil equivalent and reduce CO2 emissions by 22 percent (AlOtaibi, 2020). As a result, YallaSTEM will need to consider how it can help Saudi Arabia achieve its renewable energy goals. The GCC region is also facing several environmental challenges. These include water scarcity, air pollution, and waste management. YallaSTEM will need to consider how it can help the GCC region address these challenges.

5.6 Legal Factors

The laws in Saudi Arabia can be complex and ever-changing, so it is important for companies doing business in the country to be aware of the legal landscape. YallaSTEM will need to consider how Saudi Arabian laws can impact its business. For example, the Saudi government has strict regulations on importing and exporting educational materials because of concerns about the spread of extremism. YallaSTEM will need to consider these regulations when importing and exporting its products and services. The Saudi government has also introduced a number of reforms to the education system in recent years. These reforms include the introduction of compulsory STEM subjects for all students and the development of a new national curriculum (Picard, 2018). YallaSTEM will need to be aware of these reforms and how they can impact its business. If YallaSTEM can comply with the new regulations, it may be able to gain a competitive advantage over its rivals.

6.0 Marketing Strategy

Effective marketing starts with a solid understanding of the market, the company’s strengths and weaknesses, and the needs of its target customers. YallaSTEM will use a mix of online and offline marketing tactics to reach its target market. The marketing strategy will set our overall direction and provide a framework for our marketing decisions.

6.1 Marketing Goals

Our marketing strategy is aligned with our business goals. Our goal is to increase awareness of YallaSTEM among K-12 students in Saudi Arabia and encourage them to consider studying STEM subjects. To achieve this, we have set the following marketing goals:

• To increase brand awareness of YallaSTEM among K-12 students in Saudi Arabia by 50% by the end of 2025.
• To increase website traffic from Saudi Arabia by 100% by the end of 2023.
• To increase the number of downloads of the YallaSTEM mobile app by 100% by the end of 2023.

6.2 Market Segmentation

YallaSTEM will target K-12 students in Saudi Arabia and the larger GCC. The company will segment the market by age, gender, and location. In regards to the age segmentation, YallaSTEM will target students aged 6-17. This group is at a critical stage in their education and is more likely to be influenced by the company’s marketing messages. In terms of gender segmentation, YallaSTEM will target both male and female students. Studies have shown that girls are more likely to pursue STEM subjects if they see women succeeding in these fields (Pilotti, 2021). YallaSTEM needs to ensure its marketing messages are accessible to both genders and attempt to close the gender gap in STEM. Regarding location segmentation, YallaSTEM will target students in Saudi Arabia and the larger GCC region. The company has identified Saudi Arabia as a key growth market and will focus its marketing efforts on this country.

6.3 Positioning Statement

YallaSTEM is one of the leading providers of online STEM education in Saudi Arabia. The company offers a range of products and services that help students learn about STEM subjects in a fun and engaging way. YallaSTEM’s products are designed to help students succeed in college and prepare for careers in STEM fields. While there are many online STEM education providers in Saudi Arabia, YallaSTEM is unique in its focus on helping students discover how studying STEM may lead to their success in college.

6.4 Marketing Mix

Figure 15: Marketing mix

The marketing mix is the combination of marketing activities that a company uses to reach its target market. The 4Ps of the marketing mix are product, price, place, and promotion. This framework is used to help companies make decisions about their marketing activities.

6.4.1 Product

YallaSTEM’s primary product is its e-learning platform. The platform offers a range of courses and resources that help students learn about STEM subjects. YallaSTEM also offers a mobile app that allows students to access the platform on their smartphones. The company plans to launch a new course on robotics in 2024. Other products offered by YallaSTEM include a club of science to have fun, focusing on the GCC market, a laboratory, and a modern method to learn STEM, among other products. All products are designed to help students succeed in college and prepare for careers in STEM fields.

6.4.2 Price

YallaSTEM’s prices are based on the value its products and services offer students. The strategy is to set prices that are fair and competitive. YallaSTEM will offer a monthly subscription to its e-learning platform for SAR 99. The company will also offer discounts for students who purchase multiple courses. Considering many online STEM education providers in Saudi Arabia, YallaSTEM’s prices are considered fair and competitive.

6.4.3 Place

YallaSTEM’s products are available online and can be accessed from anywhere in the world. The company has a website and a mobile app that allow students to access the platform. YallaSTEM also has a presence on social media platforms like Facebook and Twitter. In addition, the company plans to launch a new course on robotics in 2024. The primary target market for YallaSTEM is Saudi Arabia and the GCC region. This region is considered a key growth market for the company.

6.4.4 Promotion

YallaSTEM’s promotion strategy is to use a mix of online and offline marketing activities to reach its target market. The company will use social media platforms like Facebook and Twitter to promote its products. In addition, YallaSTEM will use print and television advertising to reach its target market. The company plans to launch a new course on robotics in 2024, which will be promoted through a mix of online and offline marketing activities.

 

 

 

7.0 Business Model

The business model is the way a company generates revenue and makes a profit. It describes how the company produces and delivers its products or services, how it sells them, and how they are priced. YallaSTEM ’s business model is based on a monthly subscription to its e-learning platform. The company will also offer discounts for students who purchase multiple courses. The company plans to generate revenue by selling courses and resources to students. It will adopt a Business-to-Consumer (B2C) model.

7.1 Business Model Canvas

The Business Model Canvas is a framework that helps companies design and develop their business models. It visually represents the company’s value proposition, customer segments, channels, key resources, key activities, cost structure, key partners, customer relationships, and revenue streams.

7.1.1 Key Partners

YallaSTEM’s key partners are educational institutions, companies, and organizations that promote STEM education. These partners help the company reach its target market and provide resources that can be used on the platform. They also help YallaSTEM develop and deliver its courses. For example, Saudi government institutions like the King Abdullah University of Science and Technology (KAUST) and the Saudi Arabian Cultural Mission (SACM) will help the company with its outreach efforts in Saudi Arabia. Other key partners include online education providers like Coursera and Udacity, which will help the company develop its courses.

7.1.2 Key Activities

YallaSTEM’s key activities are developing and delivering courses, operating its e-learning platform, and conducting outreach activities. Others are managing its website and social media platforms and providing customer support. These activities help the company generate revenue and reach its target market. For example, developing and delivering courses help the company sell its products while conducting outreach activities allows the company generate awareness about its platform.

7.1.3 Key Resources

YallaSTEM’s key resources are its website, mobile app, e-learning platform, and courses. These resources are used to generate revenue and reach the company’s target market. Other key resources include its team of experts, who develop and deliver the courses, and its partnerships with educational institutions, companies, and organizations. These resources help the company develop and deliver its courses and reach its target market.

7.1.4 Value Proposition

YallaSTEM’s value proposition is to provide an e-learning platform for K-12 students to discover how studying STEM may lead to their success in college. The platform will use robots, advanced science laboratories, and modern methods to learn STEM. It will be a profitable online platform and outreach offline in Saudi Arabia and the GCC region because of the clear vision to develop and invest in education.

7.1.5 Customer Segments

YallaSTEM’s customer segments are K-12 students, their parents, and educators. The company targets students who are interested in pursuing STEM careers. It also targets their parents, who want their children to have a successful future, and educators, who want to use the latest resources to teach STEM. Other potential customer segments include companies and organizations that promote STEM education.

7.1.6 Channels

YallaSTEM’s channels are its website, mobile app, and e-learning platform. These channels are used to reach the company’s target market. Other channels include its partnerships with educational institutions, companies, and organizations. These partnerships help the company reach its target market and provide resources that can be used on the platform.

7.1.7 Customer Relationships

YallaSTEM’s customer relationships are based on trust and transparency. The company strives to build trust with its customers by providing a platform that is easy to use and offers quality content. It is also transparent about its pricing and terms of use. The company also provides customer support through its website and social media platforms.

7.1.8 Revenue Streams

YallaSTEM generates revenue from subscriptions, course fees, and advertising. Subscriptions are monthly or yearly payments made by users to access the company’s courses. Course fees are one-time payments made by users to access specific courses. Advertising revenue is generated when companies or organizations promote their products or services on the company’s platform. Other potential revenue streams include grants and donations. We expect the company to generate most of its revenue from subscriptions and course fees.

7.1.9 Cost Structure

YallaSTEM’s cost structure is based on the costs of developing and delivering courses, operating its e-learning platform, conducting outreach activities, and managing its website and social media platforms. The company also incurs costs for customer support, office expenses, and marketing. This cost structure is typical for companies in the e-learning industry. The essence of YallaSTEM’s business model is to keep its costs low and offer its courses competitively.

Table 4: Business Model Canvas

(Key Partners) ·         Promotes of STEM education: o   Educational institutions o   Companies o   Organizations	(Key Activities) ·         Developing and delivering courses, ·         Operating e-learning platform, ·         Conducting outreach activities	(Value Proposition) ·         Provide an e-learning platform for K-12 students ·         Students to discover how studying STEM may lead to their success in college		(Customer Relationships)   ·         Trust ·         Transparency	(Customer Segments)   ·         K-12 students ·         Parents ·         Educators
	(Key Resources) ·         Website, ·         Mobile app ·         E-learning platform, ·         Courses			(Channels) ·         Website, ·         Mobile app, ·         E-learning platform
(Cost Structure) ·         Costs of developing and delivering courses, ·         Operating e-learning platform, ·         Conducting outreach activities, ·         Managing website and social media platforms			(Revenue Streams) ·         Revenue from subscriptions, ·         Course fees, ·         Advertising

 

8.0 Financial Plan

 

Table 5: Financial Plan

 

8.1 Sales Forecast

The sales are forecasted from 2023 to 2027. Revenues are assumed to grow at a compound annual growth rate (CAGR) of 58%. The main drivers of this growth are an increase in the number of subscribers and the launch of new courses. These drivers are based on the company’s marketing plans and the growing interest in STEM education.

 

Table 6: Sales Forecast

REVENUE	2023	2024	2025	2026	2027
Gross Sales	$  19,130	$ 30,225	$ 47,756	$   75,455	$ 119,218
Less Sales Returns and Allowances	$                –	$                 –	$                 –	$                –	$                –
NET SALES	$  19,130	$ 30,225	$ 47,756	$ 75,455	$ 119,218

 

Figure 16: Sales Forecast

 

8.2 Profit and Loss Statement

The company is expected to generate a net profit of $13,693 in 2023, which will increase to $93,447 by 2027. This growth is due to an increase in revenues and a decrease in marketing and customer support costs as a percentage of revenues.

 

 

Table 7: Profit and Loss Statement

NET SALES	$          19,130	$          30,225	$          47,756	$          75,455	$        119,218
COST OF SALES	2023	2024	2025	2026	2027
Beginning inventory	$              300	$               310	$               320	$              330	$              340
Plus Goods Purchased or Manufactured	$              100	$               120	$               140	$              160	$              170
TOTAL GOODS AVAILABLE	$              400	$               430	$               460	$              490	$              510
Less ending inventory	$              200	$               250	$               300	$              350	$              350
TOTAL COST OF GOODS SOLD (COGS)	$              200	$               180	$               160	$              140	$              160
GROSS PROFIT (LOSS)	$          18,930	$          30,045	$          47,596	$          75,315	$        119,058
OPERATING EXPENSES	2023	2024	2025	2026	2027
SELLING
Salaries and Wages	$              700	$               735	$               772	$              810	$              851
Commissions	$                10	$                11	$                11	$                12	$                12
Advertising	$              500	$               525	$               551	$              579	$              608
Depreciation	$                20	$                24	$                29	$                35	$                41
Other  (i.e. Professional Fees)	$                –	$                 –	$                 –	$                –	$                –
TOTAL SELLING EXPENSES	$           1,230	$            1,295	$            1,363	$           1,435	$           1,512
GENERAL AND ADMINISTRATION	$          2,023	$           2,024	$           2,025	$          2,026	$          2,027
Salaries and Wages	$              200	$               210	$               221	$              232	$              243
Employee Benefits	$                  3	$                  3	$                  3	$                  3	$                  4
Payroll Taxes	$                  1	$                  2	$                  3	$                  4	$                  4
Insurance	$              400	$               420	$               441	$              463	$              486
TOTAL GENERAL AND ADMINISTRATION EXPENSES	$              604	$               635	$               668	$              702	$              737
TOTAL OPERATING EXPENSES	$           1,834	$            1,930	$            2,031	$           2,137	$           2,249
NET INCOME BEFORE TAXES	$          17,096	$          28,116	$          45,565	$          73,177	$        116,809
Taxes on income	$           3,419	$            5,623	$            9,113	$          14,635	$          23,362
NET INCOME AFTER TAXES	$          13,677	$          22,493	$          36,452	$          58,542	$          93,447
Extraordinary Gain or Loss	$                19	$                 –	$                10	$                –	$                -,
Income Tax on Extraordinary Gain	$                  3	$                 –	$                  2	$                –	$                –
NET INCOME (LOSS)	$          13,693	$          22,493	$          36,460	$          58,542	$          93,447

 

8.3 Cash Flow Statement

The company is expected to have positive cash flow from operations starting in 2023 ($209,964). This cash flow will increase to $299,437 by 2027. The main drivers of this growth are expected to be increases in revenue and decreases in expenses. The company is also expecting to receive cash infusions from investors totaling $170,000 in 2023. These infusions will help the company to grow its operations and reach its goals.

Table 8: Cash Flow Statement

	2023	2024	2025	2026	2027
Operating Cash Flow
Net Earnings	44,467	57,093	67,004	79,481	88,114
Plus: Depreciation & Amortization	19,500	18,150	17,205	16,544	16,080
Less: Changes in Working Capital	9,003	1,702	775	903	827
Cash from Operations	54,964	73,541	83,434	95,121	103,368
Investing Cash Flow
Investments in Property & Equipment	15,000	15,000	15,000	15,000	15,000
Cash from Investing	15,000	15,000	15,000	15,000	15,000
Financing Cash Flow
Issuance (repayment) of debt	–	–	(20,000)	–	–
Issuance (repayment) of equity	170,000	–	–	–	–
Cash from Financing	170,000	–	(20,000)	–	–
Net Increase (decrease) in Cash	209,964	58,541	48,434	80,121	88,368
Opening Cash Balance	–	167,971	181,210	183,715	211,069
Closing Cash Balance	209,964	226,512	229,644	263,837	299,437

 

8.4 Balance Sheet

The company is expected to have a strong balance sheet, with positive equity starting in 2023. The company’s assets are expected to grow at a faster rate than its liabilities, resulting in equity growth. The company’s equity is expected to reach $325,350 by 2027. This is a result of the company’s expected profitability and positive cash flow from operations.

Table 9: Balance Sheet

	2014	2015	2016	2017	2018
Assets
Current assets:
Cash	209,964	226,512	229,644	263,837	299,437
Accounts Receivable	6,375	7,380	8,209	8,896	9,423
Prepaid expenses	6,008	6,891	6,463	7,498	7,103
Inventory	9,756	12,001	12,281	13,164	14,178
Total current assets	232,103	252,785	256,596	293,394	330,140
Property & Equipment	56,875	52,938	50,181	48,252	46,901
Goodwill	4,475	4,325	4,888	4,838	4,813
Total Assets	293,453	310,048	311,665	346,483	381,854
Liabilities
Current liabilities:
Accounts Payable	4,878	6,001	6,140	6,582	7,089
Accrued expenses	1,650	1,926	2,078	2,331	2,374
Unearned revenue	1,925	1,950	2,316	2,440	2,155
Total current liabilities	8,453	9,877	10,534	11,353	11,618
Long-term debt	62,500	62,500	37,500	37,500	37,500
Other long-term liabilities	6,908	7,340	6,956	7,564	7,386
Total Liabilities	77,860	79,717	54,990	56,417	56,504
Shareholder’s Equity
Equity Capital	212,500	212,500	212,500	212,500	212,500
Retained Earnings	3,092	17,831	44,175	77,567	112,850
Shareholder’s Equity	215,592	230,331	256,675	290,067	325,350
Total Liabilities & Shareholder’s Equity	293,453	310,048	311,665	346,483	381,854

9.0 Conclusion

YallaSTEM is a company that is focused on providing an e-learning platform to encourage K-12 students to study STEM subjects. The company has a clear vision to develop and invest in education, with a focus on robotics, advanced science laboratories, and modern methods of instruction. The company is profit-driven and has a strong focus on the GCC market. The company has several key strengths, including its experienced management team, its strong focus on customer service, and its innovative approach to teaching STEM subjects. However, the company faces several challenges, including the need to generate awareness of its platform, the need to acquire and retain customers, and the need to scale its operations. Despite the challenges, the company has a strong business model and is well-positioned to grow in the coming years. YallaSTEM is slated to establish its operations in 2023 and is expected to generate $119,218 in revenue by 2027. The company plans to reinvest its profits to fuel its growth and expand its operations into other markets from the third year.