industry

(Part 1 of 2)

PowerPoint Presentation

Develop a PowerPoint presentation on the education industry with recommendations for companies competing in the education industry.  No large sections of text within the presentation.  The PowerPoint is meant to provide a high level overview.  It should not be word-for-word.

On the Power point- EDUCATION INDUSTRY

· Ashford University versus University of Phoenix

The PowerPoint presentation should provide:

1. An introductory section which outlines the topics to be presented in the paper and the presentation.

(Topics)

(1). Cost (2).Customer acquisition (3). Accreditation

2. Highlights of the major points from each section of your paper.

(These will be the major points)

· Threat of New Entry?

· Buyer Power?

· Threat of Substitution?

· Supplier Power?

· Competitive Rivalry?

3. Your recommendations to the companies as well as the projected results of those recommendations.

Hypothetical recommendations for Ashford University, with assumed results

Hypothetical recommendations for University of Phoenix with assumed results

4. A slide which concludes the presentation by summarizing the topics covered.

(Part 2 of 2)

You work for a consulting company that has been hired by a wealthy investor who is interested in buying a new business. This investor has asked your company to provide an analysis on the industry of this new business venture, along with recommendations for companies operating within the industry (Ashford University & University of Phoenix) (Education industry)

· eight to ten double-spaced pages in length and formatted according to APA style

· Must include an introductory paragraph with a succinct thesis statement.

· Must address the topic of the paper with critical thought.

· Must conclude with a restatement of the thesis and a conclusion paragraph.

· Must include, on the final page, a Reference List

1. Write about these three external environmental forces in the remote environment that are likely to impact the industry within the next three years.

Chosen Industry: Education Industry. Chosen companies: Ashford University & University of Phoenix

1. Cost

2. Customer acquisition

3. Accreditation

2. How will these changes likely impact the companies you have chosen for analysis?

Companies chosen:

Ashford University

University of Phoenix

3. Analyze the industry using Porter’s Five Force Model

Please see below for information on Porters 5 Forces.

4. Make at least two strategic choice recommendations for companies to successfully deal with the forces operating within the industry at the present time and in the near future.

Extra Info to help you with paper

How can I use Porters 5 Forces?

To apply Porter’s Five Forces, you need to work through these questions for each area:

· Force 1: Threat of New Entry?

· Force 2: Buyer Power?

· Force 3: Threat of Substitution?

· Force 4: Supplier Power?

· Force 5: Competitive Rivalry?

 Threat of New Entry

If a new businesses can be easily started up in your sector without substantial investment – then this is a threat. The Internet has made this a reality in many sectors, especially publishing! So ask yourself the questions:

· What’s the threat of new businesses starting in this sector?

· How easy is it to start up in this business?

· What are the rules and regulations?

· What finance would be needed to start-up?

· Are there barriers to entry which give you greater power?

Buyer Power

Where there are fewer buyers, they often control the market. Questions here include:

· How powerful are the buyers?

· How many are there?

· Can the buyers get costs down?

· Do they have the power to dictate terms?

Threat of Substitution

If there are available alternatives then the threat of substitution increases.

· How easy is it to find an alternative to this product or service?

· Can it be outsourced? Or automated?

Supplier Power

Markets where there are few suppliers means the suppliers retain the power

· Examine how many suppliers are in the market?

· Are there a few who control prices?

· Or many so prices are lower?

· Do your suppliers hold the power?

· How easy is it to switch, what’s the cost?

Competitive Rivalry

Markets where there are few competitors are attractive but can be short-lived. These are highly competitive markets with many companies chasing the same work reduce your power in the market.

· What’s the level of competition in this sector?

· What’s the competitor situation? Many competitors and you’re all in a commodity situation or a few?

Examples of how Porter’s 5 Forces can be applied to a business?

If your business is thinking about moving into new sectors or markets, or if your business is stuck in a commodity situation, then Porter’s Five Forces enables you to see the issues clearly.

Work through each of the forces to identify in your current sector and your potential sectors, to see who has the power.

Here are some examples of where the balance of power lies in different markets

· 1. Threat of New Entrants

An example is web design, as there are independents in every location. This is an easy market to enter with few requirements, other than skills, initiative and relevant hardware and software. This does mean there are many new entrants!

· 2 . Buyer Power

An example is the grocery sector since supermarkets tend to retain power over suppliers due to volume and price of contracts. They dictate terms, set prices and can possibly end agreements at any time.

· 3. Threat of Substitution

The substitute to all services is DIY. For example hairdressing or writing a will. Focus is on expertise, customer service or added value.

· 4. Supplier power

Some sectors have monopolistic (one) or oligopolistic (few) suppliers, such as utility companies. Sometimes customers have little choice i.e. where to buy domestic water suppliers though this is changing.

In the jewellery sector, diamond suppliers often hold the power and can set prices, withhold supply and restrict sales.

· 5. Competitive rivalry

These include Estate agents, web design and office stationary. Many competitors often buy on price.