The document discusses plans to open virtual coaching centers in 5 tier-2 cities using VSAT technology to provide real-time interaction between teachers and students. It notes the large size of the engineering entrance coaching industry in India and the opportunity to address the divide that exists between facilities in metro vs tier-2 cities. A SWOT analysis is presented, noting strengths like an established institute but also weaknesses like using new technology. External factors like population growth, attitudes, and new technologies are analyzed. The potential for opportunities is concluded to be higher than threats.

2. Already established players in engineering entrance coaching industry based in
Mumbai
Divide that exists between tier-2 cities and metro cities: Teachers and other
facilities
Gap as an opportunity
Service of virtual coaching centre in five tier-2 cities
'Very Small Aperture Terminal (VSAT)' technology
Real time interaction between teachers and students

3. •
The size of the coaching industry is Rs 10,000 crore.
•
50% of the students who appear in the entrance test, enroll with
the coaching institutes.
•
6 lakh students attend these classes every year.
•
Average cost for each student is around Rs 1.5 lakh.
•
The number of applicants have been raising at a steady pace of 1520% every year.
•
IIT-JEE and AIEEE market size at present is around Rs. 2,500 crores.

4. SWOT ANALYSIS
Strengths
• Established Institute
• Good Faculty
• Comprehensive study
material
• Low Fees
Weakness
• New Technology
• Traditional conception
Opportunity
• Increased propensity of parents’
to spend on children’s education
• Rising aspirants for Engineering
degree
• Strict implementation of RTE
norm
Threats
• Increased competition
• Threat of similar service by
already established players

6. Economical factors
Political Factors
• Impact of RTE act
• FDI of up to 100 per cent in
Education
• PPP model for higher studies
in India
• Government stability
• Multiple level structures
• Excise duty
•
•
•
•
•
•
Energy costs
Limited numbers of seats
Increasing expenditure
Price of education
India spends at 3.7% of GDP
PPPs do not offer returns or
autonomy
• Not-for-profit structure
• Ensures a productive future
Socio-cultural factors
•
•
•
•
•
•
Population(18-21ys)
Tier 2, 3 cities
Consumerism
Attitudes
Lifestyles
Reservations
Technological factors
• New technology
• Computer literacy
• Usage of technology

7. Factor
Political
Impact Factor
Economical
Energy costs,
Limited numbers of seats,
Price of education
Threats- low(-2)
Socio-cultural
Population,
Attitudes,
Tier 2, 3 cities,
Lifestyles
Opportunitiesmoderate(+3)
Technological
New technology,
computer,
Usage of technology
Opportunities-very
high(+4)
100% FDI in education,
PPP model for higher studies
in India
Opportunities/Threats
Opportunities- low(+2)
Hence, we can conclude that the external environment
for our model is healthy on the basis of ¾ factors.

9. PORTER’S FIVE FORCES
IMPACT OF THE FACTOR
POTENTIAL OPPORTUNITY OR
THREAT
Intensity of
competition
Intense rivalry in industry/market Threat (-3)
place
Bargaining power of
Buyers
High Aspirations of students to
get into Good institute
Opportunity(+4.5)
Bargaining power of
supplier
New technology, Few suppliers
dominate industry
Threat (-2)
Threat to entrants
Industry barriers to entry are low Threat(-2)
Threat of substitute
product
Substitute Services are not
available
Opportunity(+3)
Conclusion- This shows the overall opportunity overpowers the threats
and as such this industry is attractive at this time

10. Mode Of Coaching
Major Players
How Do They Provide
Integrated classroom
programs
FIITJEE, Aakash, Career
Point, and JK Shah.
Traditional class room
programmes
Technology aided – virtual Everonn, Career Point ,
class
Educomp, Gupta tutorial
Using VSAT Technology
and Audio-Video
interfaces
Portal-based learning
FIITJEE, Career Point,
Brilliant,Bansal and
Resonance
Providing access to
websites and the
resources
Distance learning
Edserv, Educomp and Info
Edge
Postal coaching

11. Competitor Analysis
Coaching
Price They Charge
Strong Points
76405 for first year
25 yr of exp. In medical. Although relatively, new in
JEE but huge brand name.
Bansal
51000 for first year
Well established name in Kota, already using VSAT in
Nasik.
Resonance
54933 for first year
Well established name in Kota.
IITians pace
114000 for first year
Strong presence in Maharashtra.
Aakash
EverOnn
Educomp
Brilliant Tutorials
---
Largest player in technology aided- virtual classes
coaching.
---
In technology aided- virtual classes coaching as well
as in portal based services.
60382 for first year
Chennai based IIT-JEE coaching giant.

12. To increase the number of students by 25 % at the end of third year and
40% by the end of fourth year
To expand to other tier-2 cities like Jabalpur, Aurangabad etc.
To increase profit by 20 % at the end of third year.
To continuously upgrade the services offered so as to compensate for the
real life classroom experience
To widen our scope so as to include other competitive exams

15. SEGMENTATION
TARGETING
POSITIONING
• Geographic:
Moving to 2 tier
cities
• Demographic:
Gender: Males &
females
Age group: 16-21
years
• Psychographic:
Middle class &
upper middle class
• Students
• Age group
16 – 21 yrs
• Socio economic
condition
Middle and High
income
• Geographic
location
tier 2 cities
• Parents
•
•
•
•
Credibility
Visibility
Value for money
Hi-tech

16. REGULAR
COURSE
CRASH
COURSE
• 1 Year :
• 2 Year
• 2 Month
TEST &
DISCUSSION
COURSE
• Test series

19. In the 1st year the institute incurs a loss of Rs 10,00,000.
However in the 2nd year it earns profits amounting to Rs 18,10,000.
In this case it is difficult to calculate when the company would reach its
break-even point as payments are made at different times of the year
involving different courses.
However looking at the profit figure we could say that it could be
somewhere around the first half of the second year.

20. KRAs, CONTROL & REVIEW
There are two most important key result areas:
1. Enrollment
2. Awareness
For this one should keep in mind that there are two periods
when enrollment is generally high and that is April-July for the
regular course and Feb-March for the crash course.
For both of these, awareness and a positive response from
neighbours and peers along with brilliant results in the past
would help in meeting enrollment standards.

21. 




For awareness top of the mind awareness surveys could be
carried out four times a year where the people surveyed
would be asked to name the top three coaching institutes
in their city.
Past results should be highlighted in newspapers,on the
internet and through brochures, especially during the peak
season.
For this emphasis should also be laid on the success
achieved by the parent institute as it is already an
established player.
Moreover reviews on enrollment should be carried out
every two months and could be compared to the parent
institute for reference.
The team could consist of members from all the institutes
so as to gain an objective view point.

22. REFERENCES
1. Wikipedia
2. www.fiitjee.com
3. www.cashiksha.com
4. www.pearsoneducationservices.com/eone.php
5.www.hughesnetbroadband.in
6.www.news.oneindia.in
7.www.iitjee.iodleducation.org
8. www.bansaliitjee.com/slp.html
9.www.careers360.com