Why do a Feasibility Study for Educational Institutions

The Education sector in India is poised at a crucial stage in its growth. India’s demographic advantage of having a large population of youth presents a huge opportunity to education sector players. On the other hand, the growth of the Indian economy and upward movement of income levels is boosting student spend on Education. The interplay of all these factors has made Education an attractive sector with multiple opportunities, as can be seen by the high growth many players are witnessing and pursuing.

However, the fruitfulness of this sector does not mean that every educational institution will be a success. There were many cases where a bunch of these investments has failed. So, it’s advisable to do a proper feasibility study before making such investments. Let’s take an example of a higher education program (colleges) for better understanding.

First, conduct a competitive analysis of your local competition. What similar programs are other colleges and universities offering at the same level (Associate’s, Bachelor’s, Master’s, Certificate, etc)? Figure out the content these competitors are offering, their class schedule, number of credit hours in the program, tuition cost, and other factors that are going to matter to prospective students. An informed business consultancy will have the tools necessary to investigate your competition and gain the competitive insight necessary to determine if another college or university already holds a substantial portion of the market share (which would tell you that competition will be steep for that program).

Next, investigate the labor market demand through occupational supply and demand research. The business consultancy will determine the current and projected demand of professions that graduates of the potential program would qualify for, ensuring that the market is not inundated and there will be job opportunities available for graduates. This data will bolster the credibility of the program with internal stakeholders, as well as provide valuable marketing material for prospective students.

The next step is to survey the prospective student population to gauge interest in the potential program. It is also valuable to know the needs of the potential student population with regard to class schedule, pricing sensitivity, etc. For example, if you’re hoping to offer an MBA program, there’s a good chance that night and weekend options will be desirable for some prospective students (many of them may have a full time job during business hours, have family obligations, etc), but that is dependent on other lifestyle and geographical factors that need to be considered when determining the best audience for the program. By knowing the needs of the prospective population during the setup phase of program creation, the college is in a stronger position to garner internal administrative support and external interest.

Thus, with the help of proper feasibility study an organization will be in a better position to succeed and exploit the immense potential of the growing educational sector.