Mgt 489 Mid 3

Submitted to:
Bobby Hajjaj (BHJ)

Submitted by:
Tahamina sultana Tarin

ID: 1610078030

Sec: 02
Vision Framework

Strategic Intent Core Value

To successfully enter into the international Mr altaf mahmmod always try to provide best
market as successful Bangladeshi academic quality education. He is very passionate about
institution owner. teaching and also care about English speaking
ability for better future.

Mission Core purpose

 To provide high quality education To create a platform where people can
communicate easily. Try to diminish linguistic
 Increase English speaking ability barrier.

Goal: Expand the academy all over Bangladesh and go to international market.

Key issues:

1. Competitors are having competitive advantage over A M Academy which pressuring Mr Altaf for
technological advancement and effective management to survive peacefully in this industry.

2. Underestimating the educational surface development while ensuring the expansion goes
smoothly.

3. Inefficient management system.

X factor
Mr Altaf mahmood is very skilled and experienced in teaching field. He always tries to provide his best to
improve students’ knowledge. Also he ensures the teachers quality and background. He always focus on
bring the students into a better position through giving them knowledge and he successfully have done
this from the very first of his teaching carrier.

Competitive advantage
 A M Academy has no long term debt which can be a valuable side in core competency.

 Have a good network source in Nepal.

 Strong brand image.

Resource based view (RBV)
Brand name itself is a resource for AM academy. They have enough goodwill regarding teaching. Mr
Altaf himself is a resource for their coaching.

Porter’s five forces analysis

Barrier to entry
 Initial investment is low.

 Customer loyalty is low.

 Regulation for new entrants is low.

Barrier to entry is low.

Competitive rivalry
 Huge players are available in the market and some of them serve better than AM
academy.

 Huge number of competitor.

 Competitors are using technological advancement in teaching method.

 Exit barrier is low.

Competitive rivalry is high.

Buyer power
 Buyer power will be higher if seller increases in market as in this industry lots of other
competitors are serving better then AM academy.

 As switching cost for the students will be high because students cannot leave or switch
classes in the middle of the course.

 This market is very price sensitive as customers are not loyal there is an aggressive price
setting competition in the market.

Buyer power is high.

Supplier power
 Availability of suppliers like teachers, stationary, electronics.
  Substitutes are available in the market.

Supplier power is low but if academics are start hiring highly qualified teacher then the power
can be increase.

Threat of substitutes
Competitors are serve different method and styles in teaching method. AM academy have
4 big competitors in the market and two of them have bigger market then AM academy.

Strategy: AM academy can innovate their education policy or facilities which can attract
the students to choose them over their competitors. They need to adopt technological
advancement regarding teaching method.

Game theory
In the game theory AM academy should follow dominant strategy for higher pay off. Lots of
competitors are doing business in this industry and Mr. Altaf is not focused enough to play Zero
Sum strategy in this industry that is why they are eliminate from the leadership position and
Urban took the opportunity and became the market leader.

PESTEL analysis
Goal: AM academy want to expand their business in Kathmandu, Nepal.

Time period: Next 3 years.

Political factor
 Government changes more frequently in Nepal which might cause in changes of laws and rules.

 Changes in curriculum regarding to the education in a short period of time.

 May change the skill required for the tutor.

Economical factor
 Education industry is a growing industry.

 Reduction/increase in individual income.

 Increase/ decrease in tax rate.

 Fluctuation in inflation rate most of the time high inflation rate.

 Parent company need to be able to raise the fund for supporting.

Social factor
 Nepal is a huge populated country so the market is big.

 Demographic differences can cause to change in customer needs.

 Any business against cultural values may not sustain.

 Changes in the qualification of teachers.

 Huge impact of culture in business.

 Nepal has the highest school enrollment rate.

Technological factor
 Risk of selecting the wrong technology for education method.

 Developing in terms of modern technology so AM needs to be more focus on technological

improvement for that market.

 Lack of efficient Database management system.

 Changes to standard technology required for Nepal market.

Ecological factor
 Noise Pollution may hamper in education.

 It might causes deforestation which will hamper the ecology system.

 Uses of more paper and other things related to education might cause environment pollution.

Legal factor
 As government changes frequently laws regarding rules and regulation also changes.

 If new government makes law against coaching centers more focus on school education.

 Change law about foreign investors.

 Change laws in safety issues.

Strategy
Coaching Centre industry is in growth stage in Bangladesh. AM academy is the old player and
they losing market for their strong competitors. As AM academy still follows the previous style
of teaching they are losing their market. Rather improve the teaching method, adoption of
technology Mr. Altaf always hurried for expansion. I think rather going international market he
needs to strong his local market. Because he cannot properly manage the local market how can
he able to manage the international market about where he don’t even know the proper
information. He needs to adopt value curve to grab the market again. He should focus on
management system of their institutions.