A. M.

Academy: Thirst for expansion

A.M. Academy started its journey in 1997 and it is one of the most perceived brands for TOEFL,
IELTS, and Spoken English instructions.
Vision
 Strategic Intent: A.M. Academy wants to be the first Bangladeshi institution in the
educational service industry worldwide through global expansion.
 Ideology: A.M. Academy provides quality education through expert tutors for the betterment
of society and for people who want to learn English fluently.
 Core Values: Their core value is that they want to make people fluent in English
speaking, by this people can achieve many successes and can go a long way.
 Core Purpose: Their core purpose is to provide the best quality of education that no
other institution can give for the betterment of society and for teaching English, which is
essential for all.
 Mission: Their mission is to become the no.1 institution in the educational service industry
by providing quality education by going overseas.
Key Issues:
 Huge and aggressive push from the strong competitors
 Increase of new competitors in the market.
 In the foreign market, their business policy may befall
Goal:
By the 3 basics (Clear, realistic, and measurable) A.M Academy’s goals are -
A.M. Academy’s main goal is to achieve more success by providing quality education by
expanding their business overseas.

Analysis

Competitive Advantage:
1. Resources Based View (RBV)
Resources and capabilities that A.M. academy has:
 Strong Brand
 Expert Tutors
 Unique Teaching Method
 Many Branches
 Good quality accessories
Now by using the VRINO framework -
1.Strong Brand: Valuable, Rare, Inimitable, Non-substitutable, Organizational
As it meets all the 5characterisics of VRINO, it is a competitive advantage
2. Expert Tutors: Valuable, Not rare
Expert tutors are not rare because other institutions can also hire an expert tutor as well. So, it is
not a competitive advantage
3.Unique Teaching Method: Valuable, Not rare
As Unique Teaching Method is not rare so it is not a competitive advantage
4. Many Branches: Valuable, Not rare
As many branches are not rare, as other institution also has many branches so it is not a
competitive advantage
5. Good quality accessories: Valuable, Not rare
As good quality accessories are not rare, as other institution also have good quality accessories
so it is not a competitive advantage
Competitive Positioning View (3 generic strategies):
I think they are connected to the market as a differentiator as they always want to provide the
best quality education. They mainly focus on their tutor who teaches students, they must be an
expert. And for learning from an expert teacher, students are ready to give more.
Market Scope
M.A. Academy market scope is broad as they have
 Many markets segment
 Broad coverage
Value Innovation:
M.A. Academy now is in Red Ocean as there are many competitors. They and many others doing
the same.
So, M.A. Academy must go for Blue Ocean as it means to come up with something new that
nobody is doing.
X-Factors:
All of the things that customer care about in an academy -
 Unique teaching style
 Expert tutor
 Well behaved teacher
 Location
  Low fees
 Using digital accessories
A.M Academy meets all these x-factors. So, they can be successful.

Porter’s five plus one force:

1. Barriers to entry: There is a low barrier to enter the education industry sector with a very low
amount of capital anyone can enter this industry.
2. Industry rivalry: There is high industry rivalry as there are many competitors who offer a low
price.
3. Supplier power: Suppliers have low power because there are a lot of suppliers(tutors) for this
industry.
4. Buyer power: Buyer or customers have more bargaining power because they can easily switch
from one to another
5. Threat from substitutes: The risk is very high as there are many substitutes.
6. Complementors: There are no complementors for this industry.

Key Success Factors (KSF):

What customer want?
 The uniqueness of the teaching method
 Low tuition fees
 Expert teachers
What drives industry competition?
 Price
 Uniqueness
 Brand value
 Location
Value Chain:
For an educational academy, M.A Academy needs to follow some steps –
 Hire Expert Tutors
 Well Arranged Accessories
 Promotion
 Providing guideline for the teachers
Four levels of uncertainty:
From the four levels of uncertainty A.M Academy is at level 2 which is the alternate future.
As they already planning many different plans for the future, they are an alternate future
uncertainty.
Three Strategic Postures:
The A.M Academy is a shaper as they took a big risk and want to expand their business overseas.
As they took a big risk so that they have the chance to achieve a big success in the future.

Global Expansion:
M.A Academy wants to expand its academy in Nepal. To open up first of all we must see some
factors that are similar or different from us-
 Location proximity for Nepal is low. As Nepal is near Bangladesh and there are many
similarities between these two countries.
 Shared quite similar Legal and Political System
 Shared quite similar business practices
 Shared preferences are also almost the same
 Cultural Proximity is not the same there are many differences between these two
countries.

Where to go?
We can find this question answer through Hofstede's theory -
 Egalitarianism: Nepal is a non-egalitarian country. There are no equal rights for
everyone.
 Uncertainty aversion: There is low uncertainty aversion as most of them don’t want to
experience a new thing. But there are many who want new innovation and creative ideas.
 Individualism: Nepal’s people are not individualistic. They are collectivist. They work
together and also responsible for one another.
 Orientation: Nepal’s people are group-oriented. They think for others.
How to go?
Modes of International entry
 Export
 Licensing/Franchising
 Strategic Alliance
 FDI
By these four modes, one can go internationally
A.M. Academy can go internationally by Strategic Alliance. As Altaf open up a new branch in
Nepal and his student will invest 10%. As Altaf going to invest the maximum amount of money
and also set up everything. So, he is going internationally by Strategic Alliance.

Diversification Synergy:
Insiderization
For achieving success, A, M. Academy must follow some steps-
 They should gain local knowledge first. Without this one cannot achieve success.
 A.M. Academy must achieve local sensitivity for success.
 They should locally customize their business
 They must keep their local commitment
If A.M. Academy follows all these steps, they will be successful in the future.

BCG or Traditional Corporate Strategy

High Star Question Mark
(A.M. Academy)

Industry Growth

Low Cash Cow Dog

High Low

Market Share

If A.M. Academy opens their branch in Nepal their academy must in question mark. As in Nepal,
this industry growth high and for a new SBU, its market share is low. So, A.M. Academy must
invest more and focus more on this to make it a star and continue it for so long time. So, it going
to be the Cash cow in the future.

Core Competence
A.M. Academy has a competitive advantage and when they use this competitive advantage for
another industry also than this competitive advantage is going to be a core competence. Unique
teaching style which is a competitive advantage for them with this competitive advantage if they
start another business-like school business then this unique teaching style is going to be a core
competence for them.

Dominant Logic:
Altaf is in dominant logic as once if he thinks this is right, then he doesn’t easily change his
mind. Which is very bad for a businessman. It may be a cause for failure in his business.
Parenting Strategies
There are four parenting strategies
 Stand Alone
 Development
 Linkage
 Central Services
A.M. Academy should go for a development strategy. As their academy now is in the question
mark stage, they should invest more for developing it and to bring it to the star. So, A.M.
Academy
Follow development parenting strategy.

Scenario Analysis:
1. Project: To open up a new branch in Nepal
2. Time-line: We hope that 1years is the timeline for the project
3. Identifying drivers of change

PESTEL

 Political
 Educational Policy
 Taxation
 Economical
 Tuition Fees
 Social
 Cultural Trends
 Technological
 New innovation
 Ecological
 Health consciousness
 Legal
 Foreign business law
4. Mini scenarios:
Political: If government changes, government policy can be changed in the future and
also, it can continue political instability.
Economical: Economic growth can be down and also it can be in a recession then the student
cannot able to pay a good amount of fees.
Social: Their cultural trend change can affect this industry.
Technological: New innovation can also have an impact on this sector. If everyone starts to
do classes online then this business going down.
Ecological: Health consciousness also can affect this industry. If everyone stops going to the
crowd then this industry also goes down.
Legal: Foreign business law can change many things for a business. So, this is also a factor.
5. Overall Scenario: We can see that if the government changed many things can be
changed like govt. policy, taxation, and also for the economic situation it can be hampered.
Nepal is a stable country so there might be no problem with that. Their main focus should be
on quality education, promotions, and cost-efficiency. By this, they can achieve great success
in the future.