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Degreed

To connect learning to opportunities by becoming the universal currency for skills, powering global workforce mobility.

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Degreed SWOT Analysis

Updated: October 1, 2025 • 2025-Q4 Analysis

The Degreed SWOT analysis reveals a company at a critical inflection point. Its formidable strengths—brand leadership, an enviable enterprise client base, and a vast data ecosystem—position it to capitalize on the immense opportunity of the skills-based economy. However, significant weaknesses in user experience and platform complexity, coupled with existential threats from integrated HRIS suites like Workday and the pervasive Microsoft Teams ecosystem, create urgency. The core challenge is to evolve beyond its LXP origins. Degreed must transition into an indispensable, AI-driven talent marketplace with a radically simplified UX. Success hinges on becoming deeply embedded in the enterprise workflow and proving tangible ROI, transforming from a 'nice-to-have' learning tool into a 'must-have' strategic talent platform. This strategic pivot is not just an opportunity for growth; it is a necessity for long-term survival and market leadership.

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To connect learning to opportunities by becoming the universal currency for skills, powering global workforce mobility.

Strengths

  • BRAND: Premier brand recognition as the LXP category creator.
  • CLIENTS: Impressive roster of Global 2000 enterprise clients.
  • ECOSYSTEM: Unmatched aggregation of third-party learning content.
  • DATA: Vast dataset of user learning activities and skill interests.
  • VISION: Founder-led vision for a skills-based future of work.

Weaknesses

  • UX: User interface perceived as complex by some users (G2 reviews).
  • INTEGRATION: Deep HRIS integration can be complex & resource-intensive.
  • ANALYTICS: Reporting capabilities lag behind client expectations.
  • PRICING: Premium pricing model faces pressure from bundled suites.
  • ADOPTION: Driving consistent, daily user engagement remains a challenge.

Opportunities

  • MARKETPLACE: Huge demand for integrated internal talent marketplaces.
  • AI: Generative AI can radically enhance personalization and content.
  • RE-SKILLING: Global economic shifts necessitate mass workforce upskilling.
  • DATA: Monetize anonymized skills data for labor market insights.
  • EXPANSION: Move beyond L&D buyers to Chief Human Resources Officers.

Threats

  • SUITES: Workday, Oracle, SAP bundling 'good-enough' LXP features.
  • MICROSOFT: Viva Learning's integration into Teams is a major threat.
  • ECONOMY: L&D budgets are often the first to be cut in a recession.
  • STARTUPS: Niche, AI-first startups attacking parts of the value chain.
  • COMPLACENCY: Risk of losing innovator edge as the market matures.

Key Priorities

  • PLATFORM: Evolve from LXP to an integrated AI-powered talent marketplace.
  • EXPERIENCE: Radically simplify the user experience to drive daily usage.
  • INTEGRATION: Deepen & simplify HRIS integrations to become indispensable.
  • VALUE: Clearly articulate ROI beyond learning to protect against cuts.

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Strategic pillars derived from our vision-focused SWOT analysis

1

SKILLS CURRENCY

Establish Degreed as the definitive system of record for skills.

2

INTELLIGENT PLATFORM

Evolve from LXP to an AI-driven talent marketplace.

3

ENTERPRISE INTEGRATION

Deeply embed within core HRIS & workflow systems.

4

CONSUMER-GRADE UX

Deliver an unparalleled, personalized user experience.

Degreed logo

Degreed Market

  • Founded: 2012
  • Market Share: Leading share in LXP category, emerging in talent marketplace.
  • Customer Base: Global 2000 enterprises, mid-market companies (e.g., AT&T, Unilever)
  • Category:
    Talent Management
  • SIC Code: 8299 Educational Services, Not Elsewhere Classified
  • NAICS Code: 611430 Professional and Management Development Training
  • Location: Pleasanton, California
  • Zip Code: 94588 Oakland, California
    Congressional District: CA-14 HAYWARD
  • Employees: 800
Competitors
Cornerstone OnDemand logo
Cornerstone OnDemand Request Analysis
Workday logo
Workday View Analysis
Microsoft logo
Microsoft View Analysis
Guild Education logo
Guild Education Request Analysis
BetterUp logo
BetterUp View Analysis
Products & Services
No products or services data available
Distribution Channels

Degreed Product Market Fit Analysis

Updated: October 1, 2025

Degreed is the upskilling platform that powers business agility. It provides real-time skill insights to guide strategy, boosts employee retention by linking learning directly to career growth, and maximizes L&D ROI with a unified, engaging platform. This transforms talent development from a cost center into a strategic driver of growth and innovation for the world's leading companies.

1

DRIVE business agility with real-time skill insights to guide strategy.

2

BOOST employee retention by linking learning directly to career growth.

3

MAXIMIZE L&D ROI with a unified, engaging, and personalized platform.



Before State

  • Siloed, compliance-focused learning (LMS)
  • Invisible employee skills and aspirations
  • Reactive, slow, and biased hiring/promo
  • Skills gaps derail strategic initiatives

After State

  • Unified, democratized learning ecosystem
  • Visible, verified skills data for all
  • Agile internal mobility and development
  • Data-driven workforce planning

Negative Impacts

  • Low employee engagement and high turnover
  • Wasted L&D spend on irrelevant content
  • Inability to adapt to market changes
  • Loss of top talent to external roles

Positive Outcomes

  • Increased employee retention and engagement
  • Improved internal fill rates for open roles
  • Measurable ROI on learning investment
  • Enhanced organizational agility and skills

Key Metrics

Customer Retention Rates
~90-95% for enterprise clients
Net Promoter Score (NPS)
Estimated 30-40
User Growth Rate
Driven by enterprise seat expansion
Customer Feedback/Reviews
500+ reviews on G2
Repeat Purchase Rates
High via multi-year contract renewals

Requirements

  • Executive buy-in for a skills-first culture
  • Integration with core HRIS (e.g., Workday)
  • Manager training on development conversations
  • Commitment to continuous learning

Why Degreed

  • Connect all learning content sources
  • Leverage AI for personalized recommendations
  • Link skills to projects, gigs, and roles
  • Provide rich analytics to leaders

Degreed Competitive Advantage

  • Open platform vs. closed HRIS suites
  • Focus on user-centric skill building
  • Largest aggregated catalog of content
  • Pioneering skills intelligence engine

Proof Points

  • Unilever connects 140k employees to skills
  • Capgemini uses Degreed for upskilling
  • Major banks reduce time-to-fill roles
  • Featured in Gartner Magic Quadrant for LXP
Degreed logo

Degreed Market Positioning

What You Do

  • An upskilling platform connecting learning to career opportunities.

Target Market

  • Large enterprises aiming to build a skills-based organization.

Differentiation

  • Open ecosystem aggregating all learning types
  • Focus on skills as the core unit of talent

Revenue Streams

  • SaaS subscriptions (per user/per month)
  • Professional services for implementation
Degreed logo

Degreed Operations and Technology

Company Operations
  • Organizational Structure: Functional with regional sales & CS teams
  • Supply Chain: Digital; content partnerships (e.g., Coursera, Pluralsight)
  • Tech Patents: Patents related to skill measurement and learning path algorithms.
  • Website: https://degreed.com/
Top Clients
Degreed logo

Degreed Competitive Forces

Threat of New Entry

MODERATE: High initial capital for R&D and sales, but AI-native startups can enter niche segments of the market with lower barriers.

Supplier Power

MODERATE: Power from key content providers (Coursera, Pluralsight) is significant, but Degreed's large user base provides leverage.

Buyer Power

HIGH: Large enterprise clients have significant negotiating power, demand deep integrations, and can churn to a 'good-enough' suite.

Threat of Substitution

HIGH: 'Good-enough' solutions within Microsoft Teams (Viva) or existing HRIS systems are a major substitute, even if less functional.

Competitive Rivalry

HIGH: Intense rivalry from integrated HRIS suites (Workday, SAP), pure-play LXPs (Cornerstone), and tech giants (Microsoft Viva).

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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Alignment LLC specializes in AI-powered business analysis. Through the Alignment Method, we combine advanced prompting, structured frameworks, and expert oversight to deliver actionable insights that help companies understand how AI sees their data and market position.