PESTEL ANALYSIS OF COMPITITORS

VIKRAM SINGH A.M. - askIITians

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EDUCATION INDUSTRY IN INDIASEGMENT MARKET

SHARE ( Cr )REGULATED

KEY FEATURES BUSINESS POTENTIAL

PRE+ PLAY SCHOOL

6000 -7000 NO FRANCHISE BASED LUCRATIVE INVESTMENT

SCHOOL EDUCATION

20,000 -25,000 HIGH LARGEST MARKET HUGE UNTAPPED RURAL MARKET

HIGHER EDUCATION

15,000-20,000 HIGH VARIETY OF COURSES

SCOPE FOR PVT. INST.

VOCATIONAL EDUCATION

5,000-6,000 NO FRANCHISE BASED SCOPE FOR PPP

TEST PREPARATION

600-800 NO HIGH FEES NICHE FOCUSED MARKET

COACHING CLASSES

7500-7800 NO URBAN DRIVEN SOCIABILITY ISSUES

PRESCHOOL

COACHING CLASSES

VOCATIONAL TRAINING

BOOK MARKET

MULTIMEDIA IN SCHOOLS

EUROKIDS

FIITJEE

NIIT

S CHAND

EDUCOMP

KIDZEE

AKASH

APTECH

EVERONN

BACHPAN

RESONANCE

VETA

VARIOUS PLAYERS

EXTRAMARKS

DISHAPEARSON

WHAT IS PESTEL ANALYSIS ?

POLITICAL ECONOMICAL

SOCIAL TECHNOLOGICAL

ECOLOGICAL LEGAL

PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration.

POLITICAL FACTORS

Schools being privatized

A government initiative creates the risk that the school may fail to deliver the policy or be diverted away from local priorities etc.

Changes to the skills required to be a teacher/ tutor

Changes to curriculum with short lead times

Government directive to change the pattern of exams

Approvals and legal hinders imposed by government

CBSE bans coaching for JEE, schools look to dodge rule

ECONOMICAL FACTORS

Central or local government funding decisions may affect school/ establishment finances.

Education industry is recession-resistant industry.

The need to run breakfast/ after schools clubs

Over provision of school places in the area resulting in competition from neighboring schools

The risk of highly valued, key staff moving on to more ‘up and coming’ schools/ academies

SOCIAL FACTORS

• People tend to upgrade their skills for more competitive opportunities when the business cycle turns.

• Demographic changes may affect likely pupil rolls or the nature of pupils needs e.g. pupils with English as a second language etc.

• Inability to attract staff• Social networking – blogs, Facebook, Twitter• Parental preference – an increase in ‘parent power’ has

allowed parents more freedom of choice over their child’s school

• As the recession becomes severe and unemployment increases, there is greater motivation for workforce to join institutions

TECHNOLOGICAL FACTORS

• Education policy has missed out on technological revolution though online tutoring is catching up in India. Eg Askiitians Tutor-Vista and Math guru

• Introduction of E-Learning and Online Tutoring Risk of selecting the wrong technology at times of change

New computer viruses may affect school/ college operations

Move from paper based books to e-book readers

Computer hardware being out of date

Computer software being out of date

Time to manage IT systems

ECOLOGICAL / CULTURAL FACTORS

• Change in life style of people• Literacy Rate• Population• People acceptance for the new change in system• Educational Migration• Increase in Competition level • Deregulations in educational sector:-It will

arrest the outflow of Indian students to Foreign Universities

LEGAL FACTORS

New legislation may create risks of non-compliance with the law, create new administrative burdens etc

Changes to child protection legislation

Raise the age of school leaving age

Raise/ lower the age of starting school. Nursery/ kindergarten

Change to school opening hours

Changes to funding of charity based organizations

Health & safety legislation

CURRENT SCENARIO

• It is the largest capitalized space in India, growing at 14%for the past 4 years as compared to GDP of around 8.5%.

• Government spending on education is $30 billion -12.7 % of GDP.

• For the Twelfth five-year plan , Centre has allocated 4,53,728 Crores spend on education

• India is one of the largest markets for education in the world in terms of number of students. There are over 1 million schools in India providing education to some 200 million students

.

INSTITUTE FIITJEE RESONANCE AAKASH MERITNATION

CLASS ENGG. MED ENGG. MED ENGG. MED-AIIMS

MED-AIPMT ENGG. MED

XII 1,17,079 ( 1 YR ) NA  94,382

( 1 YR )64,607 ( 1 YR )

94,382( 1 YR ) 

1,50,000 ( 1 YR )

88,000 ( 1 YR )

9,999 ( 1 YR )

8,999 ( 1 YR )

XI 2,15,106 ( 2 YR ) NA 1,02,000

( 2 YR )71,663 ( 1 YR )

1,91,012( 2 YR ) 

3,00,000 ( 2 YR )

1,93,000 ( 2 YR )

15,999 ( 2 YR )

11,999 ( 2 YR )

X 2,69,211 ( 3 YR ) NA 2,48,668

( 3 YR )2,48,668 ( 3 YR )

49,438( 1 YR ) 

 

49,438( 1 YR ) 

 

49,438( 1 YR ) 

 

5,500( 1 YR ) 

 

5,500( 1 YR ) 

 

IX 2,26,786 ( 4 YR ) NA 2,99,754

( 4 YR )2,99,754 ( 4 YR )

43,820( 1 YR ) 

 

43,820( 1 YR ) 

 

43,820( 1 YR ) 

 5,500

( 1 YR ) 5,500

( 1 YR ) 

VIII 39,531 ( 1 YR ) NA NA NA

39,326( 1 YR ) 

 

39,326( 1 YR ) 

 

39,326( 1 YR ) 

 5,500

( 1 YR ) 5,500

( 1 YR ) 

 COMPARATIVE FEE STRUCTURE