Threat of New Entrants PDF

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Threat of New Entrants The autism school industry faces low force for threat of new entry. This primarily due to two factors which includes the high cost of establishing an autism school and high challenges of establishing an autism school. The autistic schools usually will have administrative organ...

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Threat of New Entrants The autism school industry faces low force for threat of new entry. This primarily due to two factors which includes the high cost of establishing an autism school and high challenges of establishing an autism school. The autistic schools usually will have administrative organization, facilities, diagnosis treatment, staff training programs, tools and equipment and grounds. The capital is required to support the long term assets is high which include the government regulatory for grant entitlements. The switching cost is high where the modules, programs, services and facilities for autism industry are differentiated. The cost for establishing an autism school is challengeable for foreign players due to high cost of real estates and government regulatory for grant entitlements. The access of distribution channels is difficult for autism industry as they must rely on consultants who really have knowledge in autism industry to give a brief explanation to parents. On the other hand, less knowledgeable parents would not able to read while a low income family would not afford to access internet.

Bargaining Power of Buyers (Parents/Guardians) The bargaining power of parents or guardians is relatively low as there are few significant factors that weaken their bargaining power. The autistic children can’t make decision where the decision of selecting a school is decided by the parents or guardians. The autism schools in Malaysia are not having the same programs, facilities, qualified therapist and services which mean the switching cost for the parents is low. Parents are not able to check the fees of the schools in their websites as some of the schools do not provide the information on school’s websites. They can’t make comparisons of the fees unless they can make an appointment with the school’s representative advisor. Some low income level parents need to send their children to nearest schools or affordable schools.

Bargaining Power of Suppliers The bargaining power of supplier in autism industry considered to be medium. There are high number of potential suppliers for learning aids and materials. The school is free to choose from the large number suppliers for learning aids and materials for the students. Other than that, some of the learning aids and materials are applicable only for autism children which weaken the bargaining power of suppliers. In terms of therapists, there are very few qualified therapist with advanced skills are available. This service is not substitutable by replacing with normal teachers for autistic children. The consultants and therapist who are highly knowledgeable strengthens the bargaining power of supplier.

Threat of Substitutes The autism industry faces a low threat of substitutes as there are only few substitutes are available. The substitutes for autism schools are public, private and international schools. Selected government schools are offering Special Education Integration Program but the autism children are placed together in a single room with other types of special children such as dyslexia, ADHD and non-verbal disabilities. It is not possible for a teacher to handle all types of special children in a common space. Therefore, different disorders need different teaching methods and skills. On the other hand, some private schools and international schools are not accepting special children as they are fear of adding the expense for the teachers and they are too conscious about the grade of the students and school’s prestige.

Rivalry Among Existing Competitors The competition in autism industry faces low force. Autism Behavioral Centre is providing various programs but they do not strategically diverse in terms of ethnicity. They provide ABA therapy in English and Mandarin where not focusing for other ethnicity of group in terms of languages and religious. There is high number of autism schools are located in PJ and KL areas as they do not provide transportation for parents and students who long commutes to autism schools. The competitors’ size of schools is unequal as the number of students, therapists and branches are not equal. The exit barriers are low for Nasom Centre as they has specialized assets which includes the diagnosis tools and this assets are not transferrable for another industry....