A Report On Porters Five Forces English Language Essay

A Report On Porters Five Forces English Language Essay Conducting a strategic industry analysis is an informative method in understanding the mission and motivations underlying the for-profit sector and can result in additional industry insight (King, M. A., n.d.). Porter’s Five Forces are the most broadly used business tool for the strategic industry analysis. Diagram 1 was design by Michael Porter in defining the industry analysis. King’s studies (as cited in Porter, 2008) mentioned the Porter’s Five Forces contain the competitive rivalry within the industry, threat of new entrants, bargaining power of customers, threat of substitutes, and bargaining power of suppliers. Competitive Rivalry within the Industry Rivalry among competing firms is the most powerful of the five competitive forces. In gain the customer’s share to increase the firm’s revenues and profits, the firms have to endlessly compete with each other in the same industry. The competition is more intense if firm pursue strategies that gi ve competitive advantage over the strategies pursued by rivals. (Porter, 2008) Malaysia has a total of 690 private colleges, 14 private universities and university colleges and 4 foreign university branch campuses (Wong, P. W., 2003). In 2001, these private institutions had 270,900 students with 90% enrolled in private colleges (Wong, P. W., 2003). Though competition is intense throughout the private higher education industry, the bulk of the student enrolment in private colleges is concentrated within a few major players. Wong’s studies (as cited in SEGi investors website) mentioned the notable ones are SEGI, INTI Universal, Stamford, PTPL, Informatics, Olympia Colleges, Sedaya College, KDU, Taylors College, Sunway, KBU, and HELP Institute – â€Å"Big 12† Besides private, SEGI also faces competition form both listed, non-listed colleges or universities and also the college or university that located around the branches area. For example SEGI College Subang Jaya , their main competitors are those colleges or university that located around the Subang Jaya area such as INTI, Monash, Taylor’s, Sunway, Optima, Metrowealth, and Metropolitan college.. XXX, (2009, December 2). Head of Marketing Department, SEGi College Subang Jaya. Interview. Other SEGI competitors in the listed companies such as INTI and Stamford offer similar courses except that SEGI more emphasis on the adult market and vocational courses that gives good growth potential (Yaw, C. S., 2004). Formerly, SEGi was well-known for its professional and technical accountancy courses expanded its course structure with the reverse takeover of Prime Group by Systematic Education Group in 2001. Therefore, SEGi expanded its field of studies from pre-university to doctorate level and increased its tie-ups with foreign university. This reverse takeover lifted SEGI profile and in 2004, it listed as a largest private education provider with 18,500 students. (http://segi.investor.net.my/pd f%20files/TA_SEGi_040119.pdf) As the dominant competitor in the private education industry, SEGI stands apart from hundreds of small private institutions. Nevertheless, the competition is still intense between the top ranked education providers that estimated command for 30% of the total enrolled students in private college in 2001. The so-called â€Å"Big-12† which include listed competitors SEGI, INTI and Stamford. SEGI strength lies in the location of its colleges. In contrast to many notable colleges which operate on big campuses, SEGI’s colleges are scattered in residential areas across the country, from large urban areas to smaller towns and villages. For example, The Systematic Group of colleges has campuses in Georgetown, Petaling Jaya, Kuala Lumpur, Klang, Johore Bahru, Subang Jaya, Serian, and Kuching in Sarawak, while the Prime Group has campuses in Alor Star, and Bukit Mertajam, Meanwhile, the new flagship campus in Kota Damansara is also expected to attrac t more students. The new campus can cater up to more than 12,000 students. (http://www.segi.edu.my/campus/sckd/)