Hello! Thanks for your question about Naviance's strategy, market share drivers, and competitive advantage. The short version is that Naviance's uniqueness and advantage is in partnering with school districts to provide students with educational tools from K-12, then leveraging the information gained about the students to better assist in the college application process. The details have been entered into the project spreadsheet and have been copied below with the relevant links.
METHODOLOGY
Neither Naviance nor its parent company, Hobsons, is publicly traded or publishes an annual report. We therefore started by reviewing Hobson's press kit and the white papers published on Naviance's website to understand their own vision of their company strategy, both now and in the future. Armed with that information, we studied educational and industry sites to get an outsider's view of Naviance's strategy, market share drivers, and competitive advantage.
COMPANY STRATEGY
Since neither Naviance nor its parent company Hobson's publishes a public annual report for their investors, we have to infer their strategy by their actions.
Naviance's principle strategy has been to reach the students by partnering with both individual schools and school districts. The school districts, not the students themselves, foot the bill. Those schools then provide students with Naviance logins and a primer explaining the service. Their outreach is bolstered by a yearly conference, the Naviance Summer Institute, which brings together hundreds of counselors, teachers, and administrators "for three days of high-quality product training, knowledge sharing, and networking opportunities." Essentially, Naviance and Hobson's strategy has been to reach students and families by building strong relationships with the gatekeepers of the educational establishment. They have been remarkably successful, creating partnerships with over 12,000 schools in over 100 countries.
Naviance is pursuing a long-term strategy by reaching increasingly younger students. Though marketed primarily as a tool for high-school students considering their college options, Naviance also provides a program for middle school students "that helps them develop critical non-cognitive skills and college knowledge and instills confidence so that they’ll persevere to reach their long-term college and career goals." In April 2016, Hobsons announced the launch of Naviance for Elementary School: "Students are able explore what makes them unique, what kind of options lie ahead of them, and what types of preparation and planning can lead to exciting opportunities." From this, we infer that the long-term strategy is to develop a reliance on and trust in Naviance from an early age, thereby creating an expectation among students and parents that Naviance will be used by any given district.
DRIVERS OF MARKET SHARE
Hobsons is also continuing a long-standing strategy of acquiring properties that it sees as compatible with its core products. In fact, Hobsons acquired Naviance in 2007 to add it to Hobsons' own suite of solutions for students. Most recently, in January 2017, Hobsons acquired RepVisits, a site that helps students schedule visits with college admission reps, with the intent of integrating this service with Naviance. As a result of its growth, Naviance has a 2.9% market share of the Academic Learning Management software market. However, Naviance is "the college engine of choice for most school districts" because "it is the only site where students can maintain one account from middle through high school."
Hobsons, Naviance's parent company, has had two recent developments which are likely to serve as drivers: First, Hobsons recently appointed Kate Cassino as its new CEO. Cassino joined the company as COO, with oversight of the Naviance, Intersect, and Starfish product lines, and her subsequent appointment as CEO may indicate an intention to aggressively expand those lines. Second, Hobsons recently (July 2017) won an over $1 billion Federal contract. While this contract does not seem to bear directly on the Naviance line, it is likely to serve as a driver for increased market share across all of Hobson's lines.
COMPETATIVE ADVANTAGE / DIFFERENTIATION FROM COMPETATORS
Naviance's competitive advantage is that it isn't only a college admissions aid or an educational supplement, but combines the two in one "K-12" package. As noted in the above sections, they are expanding their suite of educational solutions into even the elementary school level, allowing students to maintain a single account from grade school to college. Naviance can then use the data gathered over the course of the child's education to help guide them through the college application process. So, for example, Blackboard offers an excellent suite of solutions for both K-12 and Higher Education, but does not offer the same assistance as Naviance for bridging between the two. Conversely, Overgrad offers more financial assistance information than Naviance, but does not include the K-12 educational package.
CONCLUSION
To wrap it up, the above information that we learned about Naviance has been entered into the project spreadsheet. We found that Naviance's uniqueness and advantage is in partnering with school districts to provide students with educational tools from K-12, then leveraging the information gained about the students to better assist in the college application process.
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