Market Analysi
Market Analysis
Economic Outlook
According to Asian Development Bank’s economic growth forecast for Philippines, the increase in economic growth is driven by higher employment, low inflation and rising remittances. It is forecasted that unemployment rate will decrease on the forthcoming first quarter of 2016. However, the focus of Philippine Development Plan is to accelerate inclusive growth by achieving productive employment and decent work for all. In line with that, the demand for quality in educational services will increase thereby, giving the Online CPA review center the opportunity to enter the market.
INDUSTRY ANALYSIS
History of Online Study• One of the emerging businesses in the Philippines.• “Anytime, anywhere” kind of learning• 1700’s, online learning history starts in the very first
distance learning schools generally called “correspondence courses”
• 1995, the first online degrees started becoming available• 2003, Blackboard Learning System staff announced that
40,000 instructors were teaching 150,000 online courses to more than 6 million students, across 55 countries.
• 2009, there were over 4.5 million students taking online classes
• National Review Center online it provides comprehensive set of review tools to help in preparing for a professional licensure exam by giving quality review materials available anytime and anywhere at a price that everyone can afford.
• Reviewer OnlineROL has effectively served more than 2,500 modular enrollees and 600 regular reviewees in the Philippines, UAE, Kingdom of Saudi Arabia, Qatar, Yemen, Kuwait, Singapore, Malaysia, Canada, Australia, and the United States.
• Carlbalita-e-learningis an online review program designed for board or licensure examination takers who are bound to take examinations such as the Philippine Nurses Licensure Examination, NCLEX, HAAD, CGFNS, SPLBE, LET, Criminology and Midwifery.
List of online review centersin the Philippines:
•Jurists Bar Review Centeris launched in 2014 because of the popularity of Jurists Bar
Review Center. It claimed a warm reception by the reviewees and now on its rousing success. •Teaching English as a Foreign Language
TEFL courses are also teacher preparation certificate programs, but they are not standardized. Therefore, when evaluating an onsite or online TEFL course, it’s important to do your research.
SWOT ANALYSIS
STRENGTHS• Well-designed marketing strategies• Business reputation of being innovative• Higher responsiveness to customer demands• User-friendly website with easy access to
services provided• Low staff costs
SWOT ANALYSIS
WEAKNESSES• No direct customer-seller interaction• High start-up costs• Strategic alliances
SWOT ANALYSIS
OPPORTUNITIES• High demand for the service • Changes in technology and markets like Internet• Potential new uses of products and / or services• Rapid increase of Internet users• Lifestyle changes of the people and trends in the
modern generation
SWOT ANALYSIS
THREATS• A lot of competitors in the market with similar
services• A new advertising campaign launched by
competitors• Competition from online and offline
competitors
INDUSTRY DYNAMICS
Based on the record of Commission on Higher Education Department, the number of accounting enrollees and accounting graduates has been increasing for the past five years. The number of CPA licensure examinations takers increase as well. Based on the given information, a conclusion that the demand for review centers will incessantly grow can be drawn.
Profit GenerationThere is an increasing demand for review
centers but the existing competitors could not satisfy all of these demand in the market. This will give us a chance to market our products and services by satisfying the unsatisfied gap. Tuition or program fees are the major revenues generated by this industry.
INDUSTRY DYNAMICS
CompetitionThere are already existing review centers that offer
online reviews. NRC is an online review center offered by the National Review Center, one of the premier CPA Review Center. There is also Reviewer-online.com which already created 300 CPAs since its operations in 2007. As well, Traditional Review Centers such as CPAR, ReSA and PRTC are considered as competitors for the reason that some reviewees consider enrolling to the traditional review centers more effective.
INDUSTRY DYNAMICS
Investment ConsiderationsTo be able to attract investors, the
business must present good report about:1.Income - high rate of return must be
ascertained2.Growth – improvements of business3.Risk – reasonable risk for a higher return 4.Profile of the founders of the business
Capable Management• The chosen management
– must have a good profile in able to lead the organization efficiently.
– must be composed of competent professionals – are essential in leading the whole business and relaying
the organization’s strategy on its member– leads the organization to be effective and efficient.– develop solutions for problems that the business
encounters and effectivel– interlinks functions and communication among its
members.
INDUSTRY DYNAMICS
CUSTOMER PROFILE
Major customers of the servicesClick, Pass, Achieve through acquiring
knowledge online (CPAako) used geographic, demographic, and psychographic segmentation. Our primary target market are those working accountancy graduates who do not have time to attend traditional review centers.
CUSTOMER PROFILE
CPAako’s average customers include working accountancy graduates. Common traits among customers will include:
• Lives or works in the Philippines only.• Accountancy Graduate• Planning to take the CPA licensure exam.• Planning to attend CPA review centers • Planning to work while attending review
centers
COMPETITIVE ANALYSIS
CPAako considered threat of new entry, rivalry among existing traditional and online CPA Review Centers within this industry, and the bargaining power of the suppliers and buyers (Porter’s Five Competitive Forces Model) in evaluating firm’s competitiveness.
COMPETITIVE ANALYSIS
RESEARCH AND METHODOLOGY• Survey Questionnaire• Consultation• Gathering of Information through Books and
Internet• Market Segmentation
COMPETITIVE ANALYSIS
DEMAND ANALYSISDemand should be determined to know if the business’ products
or services will be patronized in the market by the potential customers. The success or failure of a business depends on the demand of the potential customers. Demand analysis can be used. It is a tool for studying sales generated by services to determine the reasons behind the success and failure of a business and how its sales performance can be improved. Forecasting demand is an important task in any type of industry. It will be useful in devising appropriate sales promotion or marketing strategies. Accurately projecting the demand for specific services will help companies provide service in a timely manner, making it possible to fill consumers order quickly and efficiently.
COMPETITIVE ANALYSIS
In conducting analysis of demand, the researchers must first find out the population of the target market. For groundwork, we refer to the population taken from the list of takers of CPA Board Exam for the past five years:
COMPETITIVE ANALYSIS
Accounting Graduates from year 2010 to 2015
COMPETITIVE ANALYSIS
COMPETITIVE ANALYSIS
Historical Values computationHistorical Values
COMPETITIVE ANALYSIS
step 1 and 2 in computing the basis of projection
Step 1 Step2
COMPETITIVE ANALYSIS
COMPETITIVE ANALYSIS
The projected valuesProjected values
As can be seen on the table of Projected Values, from year 2016 to 2020, yield to a satisfying amount of future demands, which means there is a great probability of having potential profits for the coming years of our business.
COMPETITIVE ANALYSIS
Potential Market Demand
In estimating our probable market share, researchers used the total projected demand and total number of examinees above as our basis in determining the percentage of potential market demand. In relation with the Table 6 Projected Values, researchers get the percentage of the total number of examinees from the national number of examinees.
2015 percentage: 19,276 / 197,539 = 9.76%Assuming that 9.76% demand is constant throughout the projected years. This percentage is used to get the target market share are as follows:
COMPETITIVE ANALYSIS
COMPETITIVE ANALYSIS
SUPPLY ANALYSISThis relates closely to the demand for a good or
service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits. If people demand a good and are willing to pay more for it, producers will add to the supply.
COMPETITIVE ANALYSIS
Current Supply
COMPETITIVE ANALYSIS
Supply and Demand Analysis
COMPETITIVE ANALYSIS
Sales Forecast
COMPETITIVE ANALYSIS
SURVEY RESULTSurvey Questionnaire Design
The survey questionnaire is composed of six parts assigned for working Accountancy graduates, fresh graduates and graduating Accountancy students. A scale from 1-5 with 5 as the highest was used in the responses of the respondents on the items in the questionnaire.
COMPETITIVE ANALYSIS
• Accessibility This part of the questionnaire intends to identify if the
user can attain a good or service at the time it is desired. This shows selections according to capacity and availability of the target customers. This represents the buyer power attribute according to Porter’s.
• Learning EfficiencyThis part addresses the focus and attention of the
styles to efficient learning depending on the particular nature of the reviewees’ learning obstacles. This represents the supplier power according to Porter’s.
COMPETITIVE ANALYSIS
• Online Review Service AcceptabilityThis refers to the willingness of the target
customers to accept this type of service. This represents the Intensity of competitive rivalry according to Porter’s.
• Financial StabilityThis part describes the capability to meet a
budget in subscribing the service offered. This represents the buyers power according to Porter’s.
COMPETITIVE ANALYSIS
• Review CenterThis identifies the unique type of service offered to
the target customers especially to the customers which have a limited time in reviewing. This indicates the diversified way of reviewing within the comfort of the customers. This represents the substitute attribute according to Porter’s.
• Satisfaction/ ExpectationThis denotes the choice of other alternatives to online
review in place of some equivalent programs like the traditional review centers. This represents the substitute attribute according to Porter’s.
COMPETITIVE ANALYSIS
Interpretation of Results:
• Supplier PowerThere is a high response to the competency of the online review center and its lecturer’s competitiveness.
• Buyer PowerBased on the result of the survey, the respondents are willing to pay a price lower than the traditional review centers’ prices for a high quality of products and services.
COMPETITIVE ANALYSIS
• Threats of Substitutes
The respondents gave a low response on alternatives to online review center for the reason that CPAako offers unique products and services for those who do not have enough time to physically attend classroom based reviews.
• Threat of New EntryThe respondents are open to new firms who will offer automated and modernized process of reviewing online.
• Rivalry among Existing Competitors
The respondents vastly believe that the online review center will be as good as the traditional review centers.