Situation Analysis of Learn and Develop Child Care Services in Canberr

Question: Discuss about theSituation Analysis of Learn and Develop Child Care Services in Canberra. Answer: Introduction Situation Analysis is a method used by the managers to analyze the internal and external business environment of the organization for the purpose of forming and implementing appropriate strategies which in turn help in gaining competitive advantage. Situation analysis also facilitates in gaining information related to the target market, competitors and customers tastes and preferences in order to gain information related to their buying behavior. In this approach several methods are used for the purpose of maintaining strong relationships with customers by providing information related to the benefits of the products to them (Zimmerman Blythe, 2013). This paper provides information related to PEST analysis, competitors analysis and target market for Learn and Develop child care center in Canberra. Situation Analysis Industry Overview The child care services in Australia have gained total revenue of $7.3 billion in the year 2011 there is an annual growth of 4.7% till 2016. There are approximately 15265 businesses running in the industry that provides child care services to different customers (IBIS World, 2011). There is a presence of low revenue volatility. The industry is at the mature stage in the life cycle. There is a presence of medium entry barriers with high regulation level in the industry. There is a requirement of low capital to establish a business in the industry. The government regulations have increased wage pressure in the industry. The reason behind increase in the wages is the requirement of high level of staff qualifications and higher staff to child ratios. Factors of Uncontrollable Environment PEST Analysis Political Factors The child care services industry is heavily dependent on the government funding. Government encourages women to go to their work by placing their children in care. Government encourages family to use child care services which results in the attainment of the saturation point in the industry. This leads to the increase in the unwillingness of the companies to enter in the industry through acquisitions. Besides this, the existing players are also remaining cautious to expand their businesses as the companies are unable to obtain economies of scale in the industry (OECD, 2010). Economic Factors During 2008-2009 the child care services in Australia has not gained economic benefits due to different international economic fears such as recession. There is an increased part time employment in the industry as companies focuses on cutting the cost without decreasing the number of employees in the organization. Besides this, it also helped parents to provide required time that can be spent with their children. Losing of the jobs resulted in an increase in the inability of the parents to pay for the child care services to care their children. There is an increase in the unemployment level in the country in the year 2010 (IBIS World, 2011). This has resulted in the decline in the number of childcare centers in the country (Banbridge, 2013). Households that have high disposable income can afford the services provided by the child care services centers. The demand for work related child care is affected by the availability of the paid workers in the economy. The changes occurred in th e population of dependent children under the age of 12 years and under the age of 5 years affect the demand, occupancy and profitability of the child care services centers in the country (Connect, 2015). Social factors The child care services are availed by the parents of the children aged below 14 years. There is a occurrence of changes occurred in the tastes and preferences of the customers due to which the company has to made changes in their services offered to the customers. It is essential for the child care centers to take care of the daily activities pursued by the children in a whole day. This has affected the overall satisfaction level of the parents in the country that avail the services of the child care centers in the country (Smith, et al. 2012). Technological factors Nowadays, changes have been occurred in the technology, it is essential for the businesses to implement new technologies in order to provide high quality services and products that fulfill the demands of the customers. This also helps businesses to reduce the overall cost and increase their profits by attaining high level of customer satisfaction. Nowadays, digital technologies have become an integral part of daily lives of the children. Nowadays, children uses computer and other digital technologies for the purpose of learning new concepts due to which child care professionals provide information related to the use of technologies to children in order to make their life comfortable (Marrison, 2009). Competitor Analysis There is a presence of monopolistic competition in the market. There is a presence of low level of barriers to entry due to which new entrants can easily enter into the market. The major competitors for the child care service in Canberra are Good Start and ABC Learning with a market share of 7.1% and 30%. They are similar to the Learn and Develop child care services in Canberra as it uses high technology that can be used by children aged below 14 years to learn new concepts. Companies gain competitive advantage by the way of price competition as a differentiation strategy. The other main players in the market are G8 education, Affinity Group, YMCA Australia and Guardian Learning. There is an occurrence of consolidation of the ABC Learning centers with ABC that have 1000 childcare centers in Australia (IBIS World 2011). The learn and develop child care services has a competitive advantage of access to skilled labor by attaining government subsidy in Canberra. Besides this, it also has been established in the city of Canberra in Australia. There is a huge demand of child care services in Canberra which is easily affordable by the parents of children with 14 years age group (New Cochran, 2007). Customer Analysis The target market for the company is the children below the age group of 14 years. It facilitates in providing them the knowledge regarding their curriculum by the use of new technology. In this, child care service centre, the professionals focuses on the caring provided to the children and helps them to resolve their queries. For the purpose of segmentation of the market demographic basis is used. The company focuses on the children below the age group of 14 years. The professionals teach them to do their daily routine activities to the children below the age group of 5 years (Lamb, 2014). They provide speech therapy to them so that they can easily share their views and opinions with other children and create a social circle at the center. The different services provided to the children at the center include family day care, vacation care, long day care and other school care. Such services help in the successful development of the children at the individual level. These services fac ilitate in the overall development of the children and help them to become independent in the life (Arnhem, 2015). Conclusion It can be concluded that the major competitors of the Learn and Develop child care services are Good start and ABC. These are the direct competitors of the company. Besides this, the target market includes children below the age group of 14 years in the company. The company has skilled labor and uses subsidies provided by the government in order to provide superior quality services to its target market or existing customers. References Arnhem. 2015. Childcare in Australia. Retrieved April 7 2017 from https://docfinder.is.bnpparibas-ip.com/api/files/CDBFEFEC-0377-4DDD-AE6D-4D9F31367545 Banbridge, A. 2013. Childcare industry facing staff shortages as Government pushes ahead with ambitious targets. Retrieved April 7 2017 from https://www.abc.net.au/news/2013-07-22/childcare-centre-hires-overseas-workers-to-fill-gap/4833888 Connect. 2015. Child Care Services Industry Report. Retrieved April 7 2017 from https://www.google.co.uk/url?sa=trct=jq=esrc=ssource=webcd=3cad=rjauact=8sqi=2ved=0ahUKEwjsqMOH3pLTAhVEto8KHRWMAyAQFghDMAIurl=https%3A%2F%2Fwww.bankwest.com.au%2Fcs%2FContentServer%3Fpagename%3DFoundation%2FCS%2FBlob%2FDocument%26id%3D1292539844513%26ext%3D.pdfusg=AFQjCNElAzCIatEuHt4rP5Hr7jH0DXDk5Qbvm=bv.152174688,d.c2I IBIS World. 2011. 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