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Porter’s Five Forces for The SUDA Group Higher Education in Vietnam

The report should identify and analyse the most significant factors that have a direct bearing on the client’s business. It should concisely address the following question:
What competitive forces exist in the industry that may limit the ability to make a profit? (Analysis tool: Porter 5 Forces

Breif Points
PORTERS FIVE FORCES:
Higher Education within Vietnam (VN)
1.       Competitive Rivalry
a.       Lots of competitors, trends show in:
i.      1987: 38 colleges and 63 universities
ii.      2003: 119 colleges and 111 universities
iii.      2009: 226 colleges and 150 universities
b.      This data provides evidence of increasingly high growth rates as more competitors enter into the Vietnam education market.
c.       Even with this high growth, most education centres within VN are not able to provide adequate staff to fill these institutes and are short supplied.
d.      A Vietnamese citizen will be more loyal towards a university or college depending on the universities reputation. The better the reputation the more likely they will stay. Also university is not cheap within Vietnam thus most students will stay committed to the university in which they are admitted into.
e.      With education having some of the highest barriers to entry, it would be assumed exit barriers are high with more to lose once invested into the sector. (need to find source for this)
2.       Threat of New Entrant
a.       Higher education has some of the highest barriers to entry (gaining accreditation and state licensing.)As the opening of an higher education centre within Vietnam requires many resources such as (faculty, training, staff, equipment, licensing etc) these can be seen as high barrier costs factors that once invested will become hard to leave the market.
b.      In relation to  above point, High capital start-up costs
c.       In switching to another university, buyers/students may be deterred as they will not want to take the risk of losing a spot at a university they have already gained entrance into.
d.      Product differentiation: Newer universities may be able to offer better standards of higher education within Vietnam providing updated courses etc. (PS: could be used as a strength for SUDA group)
e.      Government policies will need to be gained (accreditation and state licensing)
3.       Threat of Substitution
a.       Higher education substitutes are low as credentials and degrees are not able to be obtained without finishing a course within a university.
b.      There is however other jobs that can be obtained within Vietnam such as taking up a ‘professional training course’ without the need for university in a labouring job. (May need to source this properly).
c.       General consensus in Vietnam is for children to make it into a university.
4.       Supplier Power
a.       The higher reputation of the university, the more power it has as it has fewer available spots for people wanting to gain entrance. May be more selective in who they allow in.
5.       Buyer Power
a.
SOURCES: Not yet referenced
Outline of applying Porters Five Forces to education: US related:
•    http://www.sedsi.org/2009_Conference/proc/proc/p080930002.pdf
Barriers of Entry Higher Education:
•    https://www.insidehighered.com/blogs/confessions-community-college-dean/barriers-entry
Higher Education information related to Vietnam
•    http://wenr.wes.org/2014/05/higher-education-in-vietnam/
•    http://wenr.wes.org/2010/08/wenr-julyaugust-2010-practical-information/
Vietnam: Higher education and training sector assessment
•    http://www.adb.org/sites/default/files/linked-documents/cps-vie-2012-2015-ssa-09.pdf
The Education System in Vietnam
http://www.business-in-asia.com/vietnam/education_system_in_vietnam.html

Sample Answer

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It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>

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