■Company Overview
3. strengths
Waseda Academy ＜4718＞ has set “raising children who do it seriously” as an educational philosophy, and they are trying to differentiate themselves by providing both “intrinsic value” and “essential value” as value to be provided. “Intrinsic value” is the ultimate goal of customers, improving grades and passing the school of their choice, and it is also the universal value of a cram school that is achieved by continuing to provide high-quality class services. On the other hand, “essential value” means developing attitudes and abilities that are the foundation for living a rich life even when becoming a member of society, and specifically, it means fostering an attitude and challenge spirit to seriously tackle problems, and the ability to overcome difficulties and get through.
As a result of working to provide this “intrinsic value” and “intrinsic value,” the company has established a position as a preparatory school that produces the highest number of successful students in the industry every year to private difficult junior high schools and difficult high schools in the Tokyo metropolitan area. The reason why many successful students are produced in difficult schools every year is that they have not only developed and provided high-quality curricula and teaching materials, but they have also continuously worked to improve education and training systems to make teachers learn teaching methods directly linked to passing. Also, since the COVID-19 pandemic, it seems that actively utilizing ICT such as “Waseda Red Dual” and “Waseda Academy Online” and providing services that encourage customers to improve convenience and learning efficiency ahead of the industry has also led to improvements in pass results, and it has become the company's strength. In addition, “creating a learning space” to motivate students and increase their motivation to learn, the fact that they provide a learning environment where they compete and work hard with each other, and furthermore, setting incentives and introducing personnel evaluation systems that include not only teachers but also office workers in order to achieve the common goal of “passing the school of your choice” are also thought to be factors that continue to maintain high passing records.
4. Status of partnerships with major shareholders
Looking at the company's major shareholders, the largest shareholder as of the end of 2024/3 was Nagase with a shareholding ratio of 18.49%, Eishinkan Co., Ltd. 9.62% in 2nd place, Meiko Network Japan 5.00% in 5th place, and Gakken Holdings ＜9470＞ 2.76% in the same industry as the 8th place.
Of these, Nagase signed a partnership agreement with Yotsuya Otsuka Co., Ltd., a subsidiary of Nagase and a pioneer in junior high school entrance exam guidance, in 1997. The details of the partnership stipulate that teaching materials used in elementary school are purchased from Yotsuya Otsuka, instructed in accordance with the curriculum, and that the company can perform proxy work as an official test venue carried out by Yotsuya Otsuka. Also, in 2023/11, it joined the Toshin Satellite Preparatory School operated by Nagase.
The second-largest shareholder, Eishinkan, is a Shingaku Juku based in Kyushu, and they have a collaborative relationship in terms of business, such as co-hosting special entrance exam preparation courses, summer training camps, instructor training, etc. for Keio Gijuku Girls' High School and La Salle High School. Also, a capital and business alliance was concluded with Meiko Network Japan, the 5th largest shareholder, for the purpose of joint development of the tutoring school “Waseda Academy Individual Guidance Center,” but the partnership was dissolved in November 2021. However, Meiko Network Japan intends to continue holding the company's shares. As for Gakken Holdings, which is ranked 8th, it has signed a business partnership agreement with a group company relating to the Gakushuku business under the Waseda Academy brand overseas.
(Author: FISCO Visiting Analyst Joe Sato)