Degreed
To connect learning to opportunities by becoming the universal currency for skills, powering global workforce mobility.
Degreed SWOT Analysis
How to Use This Analysis
This analysis for Degreed was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.
While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.
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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.
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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Degreed Market
AI-Powered Insights
Powered by leading AI models:
Gemini
- Degreed Corporate Website (About Us, Leadership, Blog)
- Crunchbase & PitchBook for funding and valuation data
- G2 and Capterra for customer reviews and product feedback
- HR Executive, SHRM, and other HR tech publications for industry trends
- LinkedIn for executive profiles and employee count estimates
- Gartner Magic Quadrant for Learning Experience Platforms
- 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:
- 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
Products & Services
Distribution Channels
Degreed Business Model Analysis
AI-Powered Insights
Powered by leading AI models:
Gemini
- Degreed Corporate Website (About Us, Leadership, Blog)
- Crunchbase & PitchBook for funding and valuation data
- G2 and Capterra for customer reviews and product feedback
- HR Executive, SHRM, and other HR tech publications for industry trends
- LinkedIn for executive profiles and employee count estimates
- Gartner Magic Quadrant for Learning Experience Platforms
Problem
- Skills gaps are hindering business growth.
- Employees don't see paths for career growth.
- Corporate learning is disconnected and dull.
- Companies can't find the talent they need.
Solution
- Unified platform for all learning types.
- AI-driven personalization and recommendations.
- Internal marketplace for jobs, gigs, projects.
- Deep analytics on workforce skills.
Key Metrics
- Monthly Active Users (MAU)
- Verified Skills per User
- Net Revenue Retention (NRR)
- Internal Mobility Rate
Unique
- Open platform vs closed-suite competitors.
- Focus on skills as the core organizing unit.
- Largest aggregated content marketplace.
- User-centric, consumer-grade experience.
Advantage
- Brand synonymous with modern learning.
- Proprietary skills data from millions of users.
- Deeply embedded in enterprise workflows.
- Strong C-level relationships in F500.
Channels
- Direct enterprise sales force.
- Strategic consulting partners (e.g., Deloitte).
- Thought leadership marketing.
- Customer referrals and case studies.
Customer Segments
- Global 2000/Fortune 500 companies.
- CHROs and Chief Learning Officers.
- Business unit leaders with skill gaps.
- Employees seeking career development.
Costs
- Salaries (Sales, R&D, G&A).
- Cloud infrastructure and hosting (AWS/Azure).
- Marketing and event sponsorships.
- Content licensing fees.
Degreed Product Market Fit Analysis
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.
DRIVE business agility with real-time skill insights to guide strategy.
BOOST employee retention by linking learning directly to career growth.
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
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 Market Positioning
AI-Powered Insights
Powered by leading AI models:
Gemini
- Degreed Corporate Website (About Us, Leadership, Blog)
- Crunchbase & PitchBook for funding and valuation data
- G2 and Capterra for customer reviews and product feedback
- HR Executive, SHRM, and other HR tech publications for industry trends
- LinkedIn for executive profiles and employee count estimates
- Gartner Magic Quadrant for Learning Experience Platforms
Strategic pillars derived from our vision-focused SWOT analysis
Establish Degreed as the definitive system of record for skills.
Evolve from LXP to an AI-driven talent marketplace.
Deeply embed within core HRIS & workflow systems.
Deliver an unparalleled, personalized user experience.
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 Operations and Technology
AI-Powered Insights
Powered by leading AI models:
Gemini
- Degreed Corporate Website (About Us, Leadership, Blog)
- Crunchbase & PitchBook for funding and valuation data
- G2 and Capterra for customer reviews and product feedback
- HR Executive, SHRM, and other HR tech publications for industry trends
- LinkedIn for executive profiles and employee count estimates
- Gartner Magic Quadrant for Learning Experience Platforms
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/
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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About Alignment LLC
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.