Gakken Bet Its Future on Care Services After Its Flagship Magazines Closed
- Gakken's flagship study magazines ceased publication and the company sold its headquarters
- Resources went into a loss-making care business that made up about 2% of sales
- Transferring capabilities built in education was central to the turnaround
Gakken's story is a practical lesson in what to do when a core business fades. Built on study magazines, the company faced a shrinking birth rate and a declining core, and moved resources into a nursing care business that was then loss-making, even selling its head office to fund the shift. A flagship magazine closing and headquarters being sold looked grim at the time; in hindsight they were the price of the transition.
Most companies instead defend the core — cut prices, cut staff, keep pouring resources into a shrinking market. Gakken accepted the old market was not coming back. The hard part is not the judgement but living through the ugly numbers.
The second lesson is how existing strengths transferred: skills built in education — managing people, running sites, designing processes — apply in care. Successful pivots usually move capability into growing demand rather than leaping into something new. Watch whether other legacy publishers follow.