Tutoring Centre for International Students - Case Study Example

Name: Lecturer: Course: Date: Tutoring Centre for International Students Executive Summary Tutoring Centre for International Students is Victoria-based learning institution that offers tutor services to international students studying by second language in Australia. The institution offers a 24 hour services in all the subjects offered in Australia and it has one of the best learning facilities and experiences tutors. The institution is strategically located near UNSW Australia, the leading international university in the country. Even though the institution is new in the industry, it strives to offer the best quality services at affordable prices. Its main target customers are Asian students because they are the majority n almost all learning institutions in Australia. Their main challenge is communication barrier and the institution will use that as an opportunity to reach many students. The main challenge the business will face is stiff competition from established institutions offering the same services. But it will counteract the challenges by offering extra services and by maintaining high quality in all the services. Problem: Need/Want The main problem for international students studying in Australia is language barrier because the majority has difficulty speaking English (Sawir 570). Consequently, lack of proper communication with their lecturer and classmates has been affecting their overall academic performance. The majority of international students studying by second language can hardly understand what their tutors are teaching them (Sawir 570). They also feel embarrassed because of inability to speak eloquent English in front of their classmates. To attract more students, Tutoring Centre for International students intends to offer private tutoring at the cheapest price compared to other centres offering the same services in Australia. The cheapest price may pose financial problem, but in the long run it will be beneficial because of the high number of students because it will benefit from economies of scale. The tutoring centre will also provide a 24/7 tutoring services in all the services available in Australia. This it intends to achieve by employing many, but experience teachers in their respective teaching subjects. Customer Segments Confirmation Tutoring Centre for International Students targets international students studying by second language in the whole of Australia. The students from various counties across the world and they make up 20% of all students in the higher learning institutions in Australia (“Australia Government (2014)” 1). This shows that the target market is relatively large because there are around 386,641 international students studying by second language in the whole of Australia. The main objective of international students is to succeed in their studies, but communication barrier is the hindrance to their goal (Ashley 1). The primary target customers are international students in higher education. The number of international students who enrolled for higher education in 2014 was 249,990, which was 8.5% increase compared to those who were admitted in 2013 (“Australia Government (2014)” 1). Those who registered for post graduate increased by 9.3% while the undergraduates increased by 9.3%. The majority of those enrolled for higher education were from China and India. Secondary customer segment will be VET, which comprised of 25.4% of international students who enrolled in 2014. VET students increased by 11% percent between 2013 and 2014. The third market will be ELICOS students and they constituted 23.4% of the total international students who enrolled in 2014 (“Australia Government (2014)” 1). The majority of the two markets came from China and India. Technical Feasibility The business will be located near one of the leading international university, UNSW Australia. Many of international students in Australia study in the university, which will enable the business to get more students. It will employ experienced tutors, who have completed their masters as either part time or full-time employees. Many of the part-time tutors will be sourced from established universities to increase networks with such universities. The business will use modern technologies in teaching like Flashnotes and Blue study. It will also offer online classes for students who cannot attend classes physically. Market Type Confirmation The existing market is those who have been studying in Australia for more than half a year in higher learning institutions and other levels like VET and ELICOS. The market is sensitive to the cost and quality of services that they receive and will only for the cheapest tutoring centre with the best quality of services. Tutoring Centre for International Students will focus on the existing market from higher education, VET, and ELICOS to achieve its objectives of rapid growth and high profits. The existing market has already learned of challenges they face while studying in Australia and they would like to find a way of overcoming such challenges to improve their performance. Most of them have a challenge communicating in English and they are looking for institutions that can accommodate their weaknesses to improve their academic performance. The majority of existing market is in higher education and VET. Competition and Channels The major competitors are established universities and colleges offering the same services the business offer. There are about 43 universities in Australia enrolling international students. They are the major competitors in the market because they are well established while at the same time they have resources to adequately serve the students. They are also coming up with techniques of bridging the gap in language barrier by providing extra services for international students to master English language. Other competitors come from private higher education providers in Australia. The majority of these institutions offer the same services as Tutoring Centre for International Students, which make the worthy competitors in the industry. Some of them are well established and are in position to attract more students due to their public image and the resources they have. The third competitors are individual professionals offering the same services to international students. The majority of them are tutors in private and public universities and colleges with a lot of experience and connections in various higher learning institutions. They are likely to offer the same services at relatively lower prices than Tutoring Centre for International Students. Despite stiff competition, the business has devised a strategy to have a competitive advantage in the market. First, the business will offer one-on-one tutoring based on personalized evaluation of students because it recognized that students have different ways of learning. It will also provide simplified specialized handouts that will enhance understanding of various concepts offered. The business will also offer systematic analysis framework during all tutoring process in order to empower students to effectively learn own their own. The business will apply strategic marketing strategy to reach as many students as possible. It will organize party at the beginning of every academic where continuing students will interact with incoming with the main purpose of attracting incoming students. The strategy will also involve networking, especially among established institutions and professors who will help with referrals and teaching materials and experience. Finally, with the permission of established learning institutions, it will distribute fliers among incoming and continuing students to inform them about the services the business offer. Financials The average price of private tutor in Australia is $40 dollars per hour. However, to attract more customers, the business will settle on $ 35 per hour. The price will sustain the business because it will enable it o pay tutors, other expanses, and break-even or make a profit. Projected Profit and Loss Account 2015 ($) 2016 ($) 2018 ($) Sales 19, 922 21, 700 25,550 Cost of sales 589 651 767 Expenses salaries 12,000 13,000 14,000 marketing 600 600 600 Depreciation cost 400 400 400 Rent 1,800 1,800 1,800 Utilities 600 600 600 Insurance 600 600 600 Tax 1,800 1,950 2,100 Total Expenses 17,800 18,850 20,100 Gross Profit 1,524 2,099 4,684 Tax incurred 450 487 508 Net profit 1,074 1,612 4,176 Conclusion Business Model The business is likely to make more profits based on the financial records above. However, it must ensure that it offer the best qualities at a relatively cheaper price for it to make a profit. Other businesses are likely to offer a cheaper price, which may be greatest challenge. To attract more students, the business will be located in the capital city where many established universities are lactated. It offer free transport services to its students who studies in universities outside the city to attract them. It will also strive to have best modern facilities like air-conditioned classrooms, free internet, and well-equipped laboratory. KOLB Reflection The main challenge facing many international students is communication barrier because of their inability to effectively communicate in English (Lu et al. 4). Communication barrier offer opportunity for private institutions because students do not get full satisfaction in established institutions with large number of students. The majority of international students studying by second language come from Asian countries, especially China and India. This is because many Asians countries do not use English as their first countries unlike other countries in America, Europe and Africa. Therefore, starting a business that bridges the gap between English-speaking students and students not fluent in business is profitable. Language barrier hinders the performance of students because they are not able to interpreted and comprehend what lecturers are teaching in class. They are also no able to freely interact with other students because they feel embarrassed. The situation can be solved by establishing a favorable environment where such students can freely learn. Works Cited Ashley, Hall. “Australia most expensive place for international students to get university education: survey.” Retrieved from http://www.abc.net.au/news/2014-09-10/australia- most-expensive-place-for-international-students/5735114 Australian Government. “End of Year Summary of International StudentEnrolmentData1– Australia –2014. Retrieved from https://internationaleducation.gov.au/research/International-Student- Data/Documents/Monthly%20summaries%20of%20international%20student%20enrolme nt%20data%202014/12_December_2014_MonthlySummary.pdf Lu, Jinjin, Thao Le, and Wei Fan. "The challenges Chinese students face in Australia." International Journal of Innovative Interdisciplinary Research 3 (2012): 1-9. Sawir, Erlenawati. "Language Difficulties of International Students in Australia: The Effects of Prior Learning Experience." International Education Journal 6.5 (2005): 567-580. Read More