INDUSTRY STUDY REPORT ON

EDUCATION & TRAINING INDUSTRY

PROGRESS REPORT – II

PREPARED BY
MAYUR KAMOTHI
SAHIL KOTECHA
(BBA SEMESTER – III)
ENROLLMENT NUMBER

20FOMBA11518
20FOMBA11522
FOR THE SUBMISSION OF CIE – I
GUIDED BY
PROF. DHARA BHALODIA
SUBMITTED TO FACULTY OF MANAGEMENT
RK UNIVERSITY RAJKOT
MONTH & YEAR
SEPTEMBER 2021
 PREFACE

In this Industrial Study report on Education and training industry

we have shown how this industry helps India to grow. And the
advantages to the industry. Further we see what are the steps
taken by the government as initiative to generate higher human
capital. This report will help us to understand the situation of
education sector in India from closely.
 ACKNOWLEDGEMENT

We are really grateful because we managed to complete our

Industrial Study Report within the time given by our professor
DharaBhalodia. This report cannot be completed without the
efforts and co-operation of the member, Sahil Kotecha and Mayur
Kamothi. We also sincerely thank our professor for guidance and
encouragement in finishing this report and also for teaching us in
this course.
 Table of Content

SR. NO. PARTICULARS PAGE NO.

Chapter 1 Industry Profile/Study: Separate page

PESTLE ANALYSIS
1 3

MICHAEL PORTERS FIVE FORCES

2 5

3 CONCLUSION OF MICHALE PORTERS FIVE FORCES 7

4 Opportunities and Threats 9

Bibliography
5 11

Education and Training industry PESTLE Analysis

What is PESTLE Analysis
The management of a company uses PESTEL analysis to weigh the factors that can hinder or
promote the industry's growth. From this PESTEL analysis of the education and training industry, it
can identify how political, economic, socio-cultural, technological, ecological, and legal issues can
impact the conditions of the education and training industry.

PESTLE ANALYSIS for education and Training industry

PESTLE Analysis? PESTLE analysis, which is sometimes referred to as PEST analysis, is a
concept in marketing principles. Moreover, this concept is used as a tool by companies to track the
environment they’re operating in or are planning to launch a new project/product/service, etc.

PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for
Social, T for Technological, L for Legal, and E for Environmental. It gives a bird’s eye view of the
whole environment from many different angles that one wants to check and keep a track of while
contemplating a certain idea/plan.

Political Factors:

 Privatization of Schools. As now the fee will be decide by the head of the institute
 Changes in skills needed for one to become a tutor.
 The expectation to become self financing.
 Government initiatives that create risk of the industry failing

Economic Factors:

 Cost of resources such as book paper, teaching and technology. As change in any of these
resource will affect the education system.
 Material shortage on international and national market.
 Parents ability to raise fund needed for optional activities. If the parents have more fund
than they can give good education to their child
 Local or central government funding decision can affect the industry. As funds directly affect
working of any institute.

Social Factors:

 Decline in Birth rate. As if the birth rate decrease there will less child who come for studies
at schools.
 Change in local population. People who migrates from one to another place will find new
school
  Inability for the industry to attract qualified staff. Qualified will attract more students, but if
there’s no qualified staff it will be hard for school.
 Parental preferences has increased the tendencies of parents to choose which school their
children are going to attend.
 Changes in demographic profile.

Technological Factors:

 Shift from paper based to e-book

 Out of date hardware
 New computer viruses that affect the operations of the industry
 Risk of choosing the inappropriate technology

Legislative Factors:

 Change in child protection acts.

 Raise in the age of those leaving school
 Lower the age of starting of school. Therefor child have to study from early age.
 Safety and health legislation.

Environmental Factors:

 Reduction in green space that is availed for activities

 Disposal of waste. Now people throw waste any where which affect the health of the
students.
 Change in local bus routes.

Michael Porter’s Five Forces

  Higher Educators have more varied challenges than perhaps any other field. You have
enormous client service issues, administrative challenges, budget challenges, etc.
Day to day crisis management gives you little time to think about the big picture – and when you
do, focusing the conversation on workable solutions usually entails negotiations across
departments and lines of authority. Here’s a tool to help: illustrative examples of some of the
issues educators face, organized according to the Five Forces model.

To start, Michael Porter’s Five Forces Analysis tool is a way of looking at the challenges a
business has to address by grouping them into five buckets: Suppliers, Buyers, Competitors, the
Threat of Substitution, and the Threat of New Entry.

These specific forces acting on an enterprise are always evolving, and obviously differ for every
business sector. Here are our thoughts to get you started:

Bargaining power of Supplier:

Although, as an educator, you are not necessarily accustomed to thinking of it this way, your
“supply” is teachers and infrastructure. And both of these impact your pedagogical choices.  For
example, if you’re thinking of shifting to an emphasis on STEM courses to meet the growing
demand, prepare for an increase in salary costs.  According to the Bureau of Labor Statistics
National Compensation Survey, the average post-secondary STEM teaching salary is $85,827,
while the average humanities salary will run a relatively cheap $78,134 (Law professors account
for the bump up to $78,000. Without them that average is $71,123 – $14,000 cheaper than STEM
per position!)

And what about infrastructure? Let’s say you’re ramping up lab sciences. They’re attractive, but
have a big impact on facilities. So you think, great, I’ll go talk to development about funding a new
science building. While you’re there, talk to them about tacking on an endowment to support new
facilities long term – not just through the building phase. It’s exciting when the big name goes up
on the shiny building, but the heat’s got to get paid for and the roof won’t last forever. Physical
plant demands reduce your salary budget, weakening your ability to attract and keep top teaching
talent.

Bargaining power of Buyer :

Educators have globalized the student pool in the past decade, and while the influx of foreign
students and their beautiful, beautiful full-tuition-plus-fees contributions have lifted the bottom line,
there are clouds on that horizon: cuts in Saudi and Brazilian scholarship support caused
applications from those nations to plunge, and the softening of the Chinese economy, the increase
in domestic institutions, and political antipathy toward the west are showing up in lower Chinese
application statistics. Price pressure is international, and students are shopping for value–
commentary is bubbling up in student blogs that price is a consideration.
Competitive Rivalry:

Domestically you also may be feeling competitive pressure. According to the National Center for
Educational Statistics, the number of 4-year postsecondary public and private 4-year
institutions has jumped from 1,957 in 1981 to 3,026 in 2013 – a 54% increase.  Meanwhile the
NCES predicts a rise in the overall number of students of only 16.8% between 2016 and 2025. 
That spells more schools competing for fewer students, more schools in consideration, thanks to
the Common App, and more students shopping for value.

Threat of Substitution:

Students are increasingly approaching education in a consumer frame of mind. That translates into
grade inflation, greater accommodation of special needs, and a ‘shopper’ mentality that has
loosened the grip of the 4-year tradition. The NCES study on the Persistence and Attainment of
Postsecondary Degrees shows an increase in ‘mixed menu’ education. The four-year degree is
now interspersed with  gap years, 2-year programs, online courses, summer courses, and life
experience. All of these competitive options are driven by the increase in traditional tuition, the
increase in student debt, the decrease in ROI, and the pressures on universities to adapt to
accommodate an ever-widening variance in student needs. There is also more interruption to the
traditional track among Latinos, a growing market that educators need to keep an eye on. If you’re
a traditional four-year institution, you’re likely to see fewer “straight-thru-in-8” students, more
transfers, and more chaos. Might want to bump up the admin budget in the admissions office.

Threat of New Entry:

Are you up on “Stackable” credentials – certificates, EMBAs, associate degrees? They’re getting
more popular as employer-sponsored on the job training goes the way of the dodo bird and the
pension fund. Employees now expect to be lifelong job switchers, with continual retraining falling
on their own shoulders. That’s ratcheting up the market for credentials acquired for a job switch or
upgrade. These ‘stackable’ credentials are a key component of ‘as-needed’ thinking in education,
and a contributor to the concept of student-as-consumer. 

Conclusion of Michael Porter’s Five Forces

In education Industry Supplier’s may lose the buyer/student if the fee of education is high by an
institute, so people will go for other institute for their child. In this industry buyer will have more
power as they can go to other institute for studies of their children.
Now-a-day there is increase in the number of schoolwhich means there is increase in rivals.
Threat of substitution means people might choose other institution rather than yours if they don’t
like your institution or the fee for education is high.
Threat of new entry means the new emerging competitions makes it hard for the older once to
survive in the market
Opportunities and Threats to the Industry
Threats to the industry
 Distance learning will reinforce teaching and learning approaches that we know do not work well.
 Educators will be overwhelmed and unsupported to do their jobs well.
 The protection and safety of children will be harder to safeguard.
 School closures will widen the equity gaps.
 Poor experiences with ed-tech during the pandemic will make it harder to get buy-in later for good
use of ed-tech.

Opportunities

 Blended learning approaches will be tried, tested, and increasingly used.

 Teachers and schools will receive more respect, appreciation, and support for their important role in
society.
 Quality teaching and learning materials will be better curated and more widely used.
 Teacher collaboration will grow and help improve learning.
 This crisis will help us come together across boundaries.
Bibliography
https://www.brookings.edu/blog/education-plus-development/2020/04/10/top-10-
risks-and-opportunities-for-education-in-the-face-of-covid-19/
https://www.essayhomeworkhelp.org/articles/sample-essay-pestel-analysis-
education-industry/