Answer – Five Forces Analysis

Analysing the environment – Five Forces Analysis

The market for online education

Answers are below: Place the following eight points onto the five forces model:

  • Start up costs are very low.
  • Sudents have access to books, videos, and paper-based distance learning packs.
    • Companies, governments, and self funding students invest huge amounts in their education.
    • There are very few high quality web sites available.

    Answers

    • Start up costs are very low (threat of entry – low barriers to entry).
    • Students have access to books, videos, and paper-based distance learning packs (product-for-product substitution).
    • Companies, governments, and self-funding students invest huge amounts in education. (High bargaining power of suppliers).
    • There are very few high quality web sites available (high bargaining power of suppliers).
    • Traditional colleges and universities are adapting their products for on-line learning (threat of new entrants – learning curve effects).
    • Government legislation in the US and Europe encourages on-line learning (threat of entry reduced – by legislation).
    • The more innovative learning sites give lesson for free just for the love of it (threat of entry – differentiation).
    • More people with access to the web every second (bargaining power of buyers).
    • Traditional colleges and universities are adapting their products for on-line learning.
    • Government legislation in the US and Europe encourages on-line learning.
    • The more innovative learning sites give lesson for free just for the love of it.
    • More people with access to the web every second.

Published by

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.