2. EDUCATION INDUSTRY IN INDIA
SEGMENT MARKET
SHARE ( Cr )
REGULATE
D
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
4. 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.
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
11. 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
.
12. 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
