K12 Inc. was the first company to enter the k-12 online education market, providing a "one-stop shop" for charter schools wanting to offer digitized traditional learning. While currently serving less than 0.5% of students nationally, significant growth is possible through rebranding and reengineering its workforce to introduce current enrollments to new product lines. However, education is a blame-focused industry and the company faces negative media attention and increasing competition from virtual charter schools. The company generates $1 billion in combined annual revenues across its school, private school, and wholesale business units, holding $130 million in cash. It could change its focus from being a digital traditional school to a "future ready school" through curriculum

1. The Story Letter to CEO
K12 Inc. was first to
market in k12 online
education space
supplying “one stop”
shopping to charters who
wish to offer digitized
“traditional” learning.

2. Boom Scenario
K12 Inc. is trading at 80% of present value.
Servicing less than 0.5% students nationally so
significant growth possible.
With rebranding and workforce re-engineering
could introduce current enrollment to new product
line.
Breaking up company parts could create upside
value

3. Bust Scenario
Education is a “blame game” industry.
Company has negative media attention.
Lots of Virtual Charter Schools popping up.
Potential conflicts of interest having managed
school unit, private school unit, and wholesale
businesses.

4. Valuables
● K12 Inc. services schools in 30 states and offers private
school globally. Largest virtual school.
● Services 125K students who are entitled to top notch
education (more choice)
● FuelBand: Separate entity selling wholesale services
direct to schools, growth story as sell services 3rd party
to all schools
● Total Combined company $1 billion in revenues
● $130 million in cash

5. Solution
Change from being a digital “traditional school” to being a
“future ready school”.
- Be curriculum agnostic, offer content choice according
to “student’s engaged learning”.
- Utilize authentic learning evidence to justify learning
gains as metrics, ie use a Transfolio: a Transcript with
attached e-portfolio
- Reengineer workforce to become creative certified
educators earning a market based wage
- Strategic partnerships with multiple content providers
- Analyze value of different parts of business units.