Yes, I totally agree with this statement. Now I am working in Academic sector and I am a teacher for School/College. In Nepal one of the most profitable business is Academic business. Because we have not tight policy in Education, and health. These are the fundamental right of human being. And every parents want to make their children educate. Approx. 50 to 70 lakhs Nepalese populations are their target market. So Investor generate higher revenue from this business. In NCIT College, there are 1500 students from 7 different faculties. One student pays minimum 10 Lakhs for his/her 4 years engineering program. And the total annual revenue is approx. 35 corer. They just teach them as per curriculum and conduct exam as per university norms, and sometimes they provide training and workshop program to their students. They have less than 10 corer annual expenses and Net profit is approx… 25 corer. So they don’t want to change because they the business process already earn a huge money from current situation. They thought that if they updated on timely and change the process then their profit may reduce. So they follow traditional teaching methodology to minimize the operating cost and other expenses. Every business has certain strategy and they also have a specific strategy. They have 5 different other schools and colleges. They have school business from kindergarten to master program. First they taught students in school level and persuade them to study their high school college in same network, and similarly persuade for college. They have clear market segment. Now they are a big brand in Nepalese education system. They have opportunity to scale up their business college to university. They have enough investment and resource and maximum number of students. But college management and executive team don’t want to scale up its college to university. Thay have an opportunity to scale up the business by using different technology and new teaching technique. If they provide the quality education to all then their product will be in top position in market then public trust them. In globally Harvard College has big name and fame, because they invest more in their product. They make their students global leader. So this technique is effective strategy of Harvard College. But NCIT can also have chance to be in top position, if they are able to sell their product in market.
In Summary, it may be conclude that all business has limited opportunity for their existing situation so they must have long term action plan that seeks to achieve sustainable competitive advantage (Rao, 2016).
References
Rao, P. (2016). Business Policy and Strategic Management . Himalyan Publising House, Mumbai.
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Yes, I totally agree with this statement. Now I am working in Academic sector and I am a teacher for School/College. In Nepal one of the most profitable business is Academic business. Because we have not tight policy in Education, and health. These are the fundamental right of human being. And every parents want to make their children educate. Approx. 50 to 70 lakhs Nepalese populations are their target market. So Investor generate higher revenue from this business. In NCIT College, there are 1500 students from 7 different faculties. One student pays minimum 10 Lakhs for his/her 4 years engineering program. And the total annual revenue is approx. 35 corer. They just teach them as per curriculum and conduct exam as per university norms, and sometimes they provide training and workshop program to their students. They have less than 10 corer annual expenses and Net profit is approx… 25 corer. So they don’t want to change because they the business process already earn a huge money from current situation. They thought that if they updated on timely and change the process then their profit may reduce. So they follow traditional teaching methodology to minimize the operating cost and other expenses. Every business has certain strategy and they also have a specific strategy. They have 5 different other schools and colleges. They have school business from kindergarten to master program. First they taught students in school level and persuade them to study their high school college in same network, and similarly persuade for college. They have clear market segment. Now they are a big brand in Nepalese education system. They have opportunity to scale up their business college to university. They have enough investment and resource and maximum number of students. But college management and executive team don’t want to scale up its college to university. Thay have an opportunity to scale up the business by using different technology and new teaching technique. If they provide the quality education to all then their product will be in top position in market then public trust them. In globally Harvard College has big name and fame, because they invest more in their product. They make their students global leader. So this technique is effective strategy of Harvard College. But NCIT can also have chance to be in top position, if they are able to sell their product in market.
In Summary, it may be conclude that all business has limited opportunity for their existing situation so they must have long term action plan that seeks to achieve sustainable competitive advantage (Rao, 2016).
References
Rao, P. (2016). Business Policy and Strategic Management . Himalyan Publising House, Mumbai.