NVI Technical College Information

Market Feasibility

• The low concentration level results from the nature of education

Barriers to Entry

services, where economies of scale are limited.

What challenges do potential industry entrants face?

• Moreover, limited economies of scale prevent vocational schools

Legal

from expanding to multiple locations.

• New trade and technical schools can opt to go through the

process of accreditation by an approved agency, but this isn't

Market share concentration has remained relatively stable

legally required to begin instructing students.

A

• The concentration level reflects the mature stage of the industry

life cycle and mirrors the composition of most of the education

Start-Up Costs

sector, which is generally fragmented because of localized

• Capital costs are a considerable barrier to entry, depending on

demand.

the segment that a prospective operator is considering.

• Increasing online classes' enrollment will ultimately slow schools'

• For example, the cost of setting up an aviation school is high

physical expansion. As more students opt to take online classes,

because of the expensive equipment required to provide training,

the need for classrooms will diminish and concentration will

but the cost of establishing a business in hairdressing is much

increase.

lower in comparison.

Source: Wert-Berater Feasibility Studies, LLC and IBISWorld

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