Based on the IR interview, SPRIX Inc. outlined plans to expand its business in Japan and overseas, centered on Mori Juku. It is pursuing an operating model that aims for strong educational outcomes while controlling instructor costs at Mori Juku, as well as expanding its foundational academic skills assessment business centered on TOFAS.
SPRIX Inc. published an IR interview discussing its growth strategy, centered on its Mori Juku tutoring school business and assessment business. Mori Juku focuses on one-to-one instruction, with an operating model specializing in test preparation and the use of AI to optimize instruction for each student. It currently operates 221 schools nationwide and focuses on providing education to the middle-income segment.
Mori Juku accounts for more than half of SPRIX's sales, Shonan Seminar approximately 30%, Kawaijuku Manavis approximately 10%, and other businesses including TOFAS the remainder. Mori Juku is distinguished by its highly efficient operations and customizable teaching materials, enabling it to maintain stable results while controlling instructor costs at its schools.
TOFAS, a foundational academic skills assessment, has been offered since 2021, and approximately 3.5 million people in 44 countries worldwide have taken it. As an assessment of basic academic skills, it is being promoted mainly in Southeast Asia and South America, and there are cases in which it has influenced the allocation of human resources in developing countries. Going forward, SPRIX plans to accelerate its global expansion on the basis of TOFAS.
SPRIX Inc. announced plans to expand Mori Juku into the Kansai area and open 7 schools in Osaka. With nationwide expansion as its premise, it plans to expand geographically while maintaining proprietary teaching materials that are not affected by the schools to which students in each region apply, as well as its one-to-one instruction system.
SPRIX Inc. aims to build an ecosystem for its foundational academic skills business by creating synergies between its overseas expansion and assessment business. Despite the impact of the declining birth rate on the education industry, it outlined a strategy of investing cash generated by its existing businesses in new businesses.