ROSETTA STONE INC.: CHANGING THE WAY PEOPLE LEARN LANGUAGES

Rosetta Stone Inc. is a leading provider of technology-based language learning solutions. Acclaimed for the speed, power and effectiveness of its Dynamic Immersion method, Rosetta Stone has revolutionized language learning.

Rosetta Stone Inc. is changing the way the world learns languages. Rosetta Stone provides interactive solutions that are acclaimed for the lower speed and power to unlock the natural language-learning ability in everyone. Available in more than 30 languages, Rosetta Stone language learning solutions are used by schools, organizations, and millions of individuals in over 150 countries throughout the world.

Rosetta Stones mission was to change the way people learn languages. The company blended language learning with technology at a time when globalization connected more and more individuals and institutions to each other.

The potential for profit in the language learning industry encouraged management to become more proactive and aggressive about Rosetta Stones growth. In 2007, an industry analysis commissioned from The Nielsen Company, a market research firm, found that the language learning industry produced over $83 billion in consumer spending. Of this amount, $32 billion, or 39 percent of the total, was spent on self-study options. In the United States, the industry generated $5 billion in consumer spending in 2007, of which $2 billion was for self-study. Over 90 percent of the $83 billion was spent outside the United States.

The companys debut on the New York Stock Exchange brought capital and resources that placed Rosetta Stone in an exciting and promising position. Tom Adams, President and Chief Executive Officer, said We are excited about hardware trends and the potential of educational technology in general. We are working in new ways with online socialization. We see our primary opportunity as growing through our own innovation With added financial resources we can entertain mergers and acquisitions down the line. To effectively compete, Rosetta Stone will have to push product and service development as well as attract and retain talented personnel.

Case Study Questions (25 marks each):

1. How should the company move forward in order to sustain its momentum? Discuss.

2. How can Rosetta Stone grow internationally? Elaborate.

3. Under which strategic type, can Rosetta Stone Inc. fall? Elaborate.

4. Choose any two variables from the societal environment and discuss whether they can be considered as opportunities or threats for Rosetta Stone Inc.