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  Future of industries - For profit education Industry  
     
     
 
For profit education industry
 
Shining Perspective
Educational institutionsin Developed economies like USA, Australia which primarily are funded by
tuition fee charged from foreign students face budget cuts in light of economic recession
Emerging economies become locations of interest as students from America and Europe pour in India, China, Africa to gain understanding of the burgeoning and prosperous market
Integration of technology to create perceived selling differentiation through optimal delivery
of content
 
 
For-Profit education continues to be a profitable business even when other sectors of economy are severely
affected by world wide recessions.
 
While in developed countries, institutions faced budget cuts and closures owing to their financing being dependent
on tution fee coming from foreign students, In emerging countries, government continue to support education program at primary level by declaring education as fundamental right of citizens.
 
At secondary and higher secondary level, both government and private sector continue to contribute jointly.
It is at the university level that private sector has outpaced government in investment. A large number of private institutions offering variety of courses will continue to dominate the scene.
 
With curriculum being uniform and dictated by regulatory body, there is very little differentiation in the content
of education. So educational institutions need to create perceived selling differentiation in the delivery of content
by integrating technology.
 
 
  Industry Growth Drivers
  Increasing disposable income
  Rapid urbanization
  Inability of public education system to meet the increasing demand
  Declining public expenditure
  Education is the second largest expenditure after food & groceries
  Burgeoning middle class who stress upon their children receiving education
  Increased investment from Private sector
  Increased interest of foreign Universities to invest in infrastructure in India
  Increase in demand for online courses
  Easy availability of student financing
     
  Industry Competitive Scenario
  Highly competitive private sector
  Increasing stress on multimedia tools of delivery of lectures
  Large scale collaborations with esteemed foreign accredited agencies
     
  Industry Complexity
  Ineffective regulatory authority
  Massive gap in required infrastructure for supporting increasing demand at primary level
  High enrollment fee charged by private players
  Lack of skilled work force
  Lack of interest among young generation towards taking teaching assignments
  Redundant pay-scale
     
  Industry Pain Areas
  Decreasing standards of quality
  Unavailability of skilled work force
  Decreasing Public spending
     
 
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