US Education Sector

Content

1. Introduction 1.1 Industry Definition The education industry in the US mainly comprises establishments that provide elementary and secondary education (K12), special education, vocational education, and the components of higher education (i.e., community colleges, four-year colleges, and universities). 1.2 Industry Segments The education industry is mainly divided into three segments: K-12 Education Post-Secondary Education Others Vocational Schools Business and Secretarial Schools Job Training and Other Educational Services 2. Market Dynamics 2.1 Market Overview The section consists of US education industry as a component of the US GDP, total education expenditure and post secondary education expenditure and industry growth. 2.2 Trend Analysis Education Attainment Levels Trends in Tuition Fees Education Industry Investment Activity Charter Schools Online Distance Education US Universities Hunt for New Locations 2.3 Key Drivers Emergence of Knowledge Economy Technological Advances Effect on Capacity Government Initiatives 2.4 Major Issues and Implications Availability of Certified Teachers International Competition Inflation rate vs. teachers salary growth rate 3. PEST Analysis 3.1 Political Factors No Child Left Behind (NCLB) Act: Objective, Principles and Impact National Education Technology (NET) Plan: Steps and recommendations Tax incentives 3.2 Economic Factors Changing trends due to economic cycles Variation in student loan interest rates 3.3 Social Factors Expectation of future earnings Knowledge economy Public schools and peoples expectations Demographic disparities in college enrollments 3.4 Technological Factors E-learning and virtual schools Logical Connectivity Teaching Technology Knowledge Sharing Software 4. Michael Porters Five Forces Analysis 4.1 Suppliers Power State Funding as a Factor Availability of Teachers Marketing and Ground Costs Online Databases 4.2 Buyers Power Demand Pattern Impact of private academic institutions credibility 4.3 Rivalry among Competitors Brand Visibility 4.4 Threat of New Entrants Regulatory Climate Establishment costs 4.5 Threat of Substitutes Online Programs 5. Competitive Landscape 5.1 Competitive Positioning: K-12 Segment The top three companies in the K-12 segment - Edison Schools, Nobel Learning Communities (NLCI) and Imagine Schools are compared on parameters: Year of Establishment Revenue No. of Students Presence in States (Out of 50) No. of Schools in US No. of Employees Competition Strategies Edison Schools Cluster approach Comprehensive model Expansion plans NLCI Nature of growth Curriculum and training Investment Imagine Schools New Schools Non-profit status Lennar Corporation Dual Marketing Strategy Everythings Included Program Design Studio SM Program Cost-Efficiency Strategic Collaborations 5.2 Post-Secondary Education Competitive Positioning The profiles and comparisons top three companies in post-secondary education segment. Apollo Group, Career Education and Education management are compared on parameters: Market Position No. of Students Revenues (US$ Billion) Competition Strategies Apollo Group On-ground and International expansion Business model growth Entering new markets Implementation of new programs Career Education Domestic acquisitions and Department of Education (DoE) regulations Expansion into new programs Foreign Expansion Education Management New Campus markets Growth strategy Co-location strategy Program development 5.3 Financial Analysis Apollo Group, Career Education and Education management are compared on parameters comparisons based on: Income Statement Analysis: Revenues Gross Margins Operating Margins Profit Margins Balance Sheet Analysis: Curent Ratio Debt-equity ratio Return on Assets ratio Return on Equity ratio Stock Performance: Stock price movements - Apollo Group, Career Education and Education management and Bloomberg Industry Index Stock price movements Market Capitalization 6. Industry Outlook Outlook on parameters: Enrollment in K-12 Segment Expenditure in K-12 Segment Enrollment in Post secondary Segment Expenditure in Post secondary Segment Appendices Appendix I International Conferences and Annual Meetings Appendix II Industry Associations and Organizations List of Tables/Figures Table 3.1 Interest Rates on Student Loans July 2004-June 2005 Vs July 2005-June 2006 Table 5.1.1 Revenues of Top Three Companies in K-12 Segment Table 5.1.2 Competitive Positioning of Companies in K-12 Segment Table 5.1.3 NCLI Operating Statistics Table 5.1.4 4 Geographic Presence of Companies in K-12 Segment Table 5.2.1 Revenue comparisons in post-secondary education segment 2004 Table 5.2.2 Competitive Positioning of Companies in post-secondary education segment Figure 1.1 Industry Primary Divisions Figure 1.2 Industry Segments Figure 2.1 Total Education Expenditure 1998-99 to 2003-2004 Figure 2.2 K-12 Education Expenditure 1998-99 to 2003-2004 Figure 2.3 Post-secondary Education Expenditure - 1998-99 to 2003-2004 Figure 2.4 Education Attainment Levels, 2000-2004 Figure 2.5 Trends in Average Tuition fees 2004-2005 Figure 2.6 Operational Charter schools by year opened 200120-02 to 200520-06 Figure 3.1 Grades given by public to schools, 2000-2004 Figure 4.1 Adoption Fund Break up Figure 4.2 Attrition Rates Figure 5.1 Revenue Comparisons, 2002-2005 Figure 5.2 Gross Margin Comparisons, 2002-2005 Figure 5.3 Operating Margin Comparisons, 2002-2005 Figure 5.4 Profit Margin Comparisons, 2002-2005 Figure 5.5 Current ratio Comparisons, 2002-2005 Figure 5.6 Debt Equity Ratio Comparisons, 2002-2005 Figure 5.7 Return on Assets Comparisons, 2002-2005 Figure 5.8 Return on Equity Comparisons, 2002-2005 Figure 5.9 Stock Performance comparisons, Feb 2005-Jan 2006 Figure 5.10 Market Capitalization Comparisons, as on February 1, 2006 Figure 6.1 Projected Enrollment in K-12 Segment, 2006-2011 Figure 6.2 Projected Expenditure in K-12 Segment, 2006-2011 Figure 6.3 Projected Enrollment in Post secondary Segment, 2006-2011 Figure 6.4 Projected Expenditure in Post secondary Segment, 2006-2011