Edugo's Dilemma: The Financial Logic of Choosing B2B or B2B2C

Giuseppe Tomasello founded Edugo with the goal of developing effective language-learning tools powered by advanced AI technology. The case details Edugo’s product iterations and demonstrates how financial logic can guide strategic corporate decisions. It applies financial concepts such as net present value (NPV) and the cost of capital to help the founder determine the optimal business model. Edugo’s key technological breakthrough was its ability to generate customized content using digitalized transcripts from online or offline language classes. By leveraging a large dataset from these transcripts, Edugo created AI-generated review materials and interactive exercises tailored to individual learners. At the time of the case, Giuseppe faced a crucial decision: whether to market these innovations directly to end-users (B2C) or through language schools (B2B2C).