Porter’s Five Forces Analysis of Education Industry 

Education is the method of sharing knowledge, character traits, and skills in various forms. Online education is imparting knowledge and skills through the internet and online media by employing any of the tech and digital devices like computers, laptops, tablets, TV, radio, and smartphones. Today, we’ll discuss Porter’s five forces analysis of education industry; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Different forms and types of education are as follows;

• Primary education
• Secondary education
• Tertiary education
• Online Education
• Early childhood education
• School education
• College Education
• University education

Teaching methods and techniques in the education industry are as follows;

• Teacher centered education
• Student-focused education
• Lecture method
• Activity-based learning
• Conceptual education

Subject education is as follows;

• Physical education
• Language education
• Science Education
• Technical and mechanical education

Factors impacting the education are as follows;

• Parent involvement
• Teacher quality
• Technology
• Social factors
• Personality
• Intelligence
• Psychological

Porter’s five forces analysis of education industry would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s education industry Porter’s five forces analysis of online education industry;

Porter’s Five Forces Analysis of Education Industry 

Let’s discuss Porter’s five forces analysis of education industry as competitive forces in strategic management; they’re as follows;

Bargaining Power of Suppliers in Education Industry

The bargaining of suppliers is lower to moderate in the education Industry as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the education Industry Porter’s five forces analysis of schools and online education are as follows;

I-Teaching Faculty

Teachers are the main suppliers in the education industry. The availability of teachers is very high due to the increasing literacy rate at the global level, and it makes their bargaining power lower. However, finding quality, qualified, and result-driven teachers is difficult, and it makes their bargaining power higher.

II-Administration

The clerical and administrative staff are equally significant in the education industry. They help you to maintain the records of students, teachers, management, cost, and expenses. Without the proper administrative system, you can’t run the educational institute successfully.

Bargaining Power of Buyers in Education Industry

The bargaining of Buyers is Higher in the schools and education business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of buyers in the schools and online education business five forces analysis of education industry are as follows;

I-Parent

Parents are the main buyers of education for their children in early education. They are the ones who choose the school and pay for the education. They have a lot of options when selecting schools and educational institutes. It gives them significant bargaining power in their hand.

II-Students

Students are also the buyers of education in the professional education in the college and university. They make the choice based on their affordability and their qualification grades. Higher-grade achiever students have more options and choices than lower-grade students.

Threat of New Entrants in Education Industry

The threat of new entrants is lower in the school business and education industry as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the school business five forces analysis of the online education industry are as follows;

I-Heavy Investment

When it comes to entering the education industry and building an educational institute, then it requires heavy investment. It is in the form of building rent, teacher salaries, and various other clerical and administrative expenses for running the educational institutes.

II-Branding Reputation

Along with heavy investment in building the schools, branding and marketing costs are very high. There are many educational institutes, but some big brands are the choice of many parents because they want to give better education to their kids.

Threat of Substitutes in Education Industry

The threat of substitute products and brands is higher in the online education industry and school business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the school business five forces analysis of the education industry are as follows;

I-Multiple Schools

There are various schools local and international available in various regions and countries across the world. Parents and students have many options when it comes to choosing the school, they would select the schooling system based on the budget, requirements, and affordability.

II-Online Education

Along with many traditional physical schools, there are many online educational options available to parents and students. Many people are going towards online education and homeschooling due to the security issues and decreasing standards of the existing education system.

Competitive Rivalry in the Education Industry

The competitive rivalry among schools and online education institutes is very high in the education industry as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the schools and online education institutes’ five forces analysis of the education industry are as follows;

I-Tough Competition

The education industry has become highly competitive in recent years. There are educational institutes, local and international, and online education platforms are running their business in the education industry. It has become highly difficult for educational institutes to maintain their position in the competitive environment.

Conclusion: Education Industry Porter’s Five Forces Analysis |Five Forces Analysis of Online Education Industry 

After an in-depth study of Porter’s five forces analysis of education industry; we have realized that the education industry is the world’s most profitable business. If you are learning about education industry five forces analysis of online education industry; then you should keep in mind the abovementioned bargaining power of buyers and suppliers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.