2. BUSINESS EXPANSION PLANS
2.1. HULEG HIGH SCHOOL EXPANSION PLAN
2.1.4. MARKET ANALYSIS
be managed as real well developed schools. As such, besides that weak economical factors, majority of schools are cheap so that the teachers, facilities and services being offered are inferior. Schools are quite different in terms of quality, students, price, and terrain. Recently new initiatives of high school business are being emerged and creating their segmentations through unique strategies such as teaching arts, languages and/or natural sciences or combinations of these subjects. Huleg is one of the schools that try to optimize this opportunity and contribute to the current education system in transition, as combination of scientific and language school.
2.1.3. HULEG SCHOOL INTRODUCTION
The high school was founded in 2009. The same year 27 students registered in 10, 11th grades. High school is located at the same building and of the university and program content in short run is only focused on scientific courses such as mathematics, chemistry, biology since the mission of the high school is to prepare students who qualify the requirements of natural studies based programs in universities. According to school plan, it is aiming at offering language programs in couple of years, once it already stood stable in its current initiatives, besides that it will be unavoidable due to market trend and competition.
In terms of management, university and high school will exist from the same advisory board members.
2.1.4. MARKET ANALYSIS
Target Market
There is a huge gap between state secondary schools and private secondary schools. Our target market will be somewhere in this gap, focused on students who are interested in science and planning their future in scientific fields, as well as we offer to parents whose children are good at scientific courses and can afford good quality education package for their children in decent price. This segment of the population generate the majority of Ulaanbaatar citizens whose family income range is in between 500USD to 1000USD in a month with family members of average 4-5 such as civil servants, small, medium sized business owners, lower level employees in private companies who cannot afford to send
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their kids in expensive private high schools with pricing of USD 2500 and more on yearly basis.
Background
Figure 11. Population growth in last three
years Figure 12. Graduates from high schools,
technical and vocational schools and universities and colleges in last three years
Population growth looks promising since 1.98% increase than in start of previous year, moreover, this growth is highest amongst last years since 1990, reached 19.4 in each 1000 people in 2009. Consistent with economic uptrend this number can be predicted to be increasing in coming years. Yet, we cannot ignore average numbers of children in a family is reducing.
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The graduates’ numbers in primary and secondary school is reducing. In 2009-2010 education year average number of primary and secondary schools decreased with 7 (0.9%) and number of students who are studying in these schools decreased with 10000 (1.9%).
While, out of total 522.1 (2009) thousand students, 178.8 thousand are in 7-9 grade, and 69.4 thousand are in 10-12 grade. Yet, number of parents investing in their children’s education is growing, considering that number of applicants to both public and private universities and colleges is not declining despite government policy which is trying to de-escalate the increasing trend of private universities. Thus private high school business can be successful if schools differentiate their students through qualified education services, to reach higher education opportunities. As such we can still consider that market is in growing trend.
Figure 13. Student numbers in universities and colleges in last ten years
Consistent with growing trend of applications to universities and government policy which encourages increase in the number of scientific field search students, Huleg high school is in advantageous position with its program of its scientific concentration.
Below graph shows us 7-9th grade segment is greater than 10th and 11th grade which shows high school demand will be stable if not increasing in coming years. In 2009-2010 education year, out of all students 274.0 thousand in 1-5th grade, 178.7 thousand in 7-9th grade, and 69.4 thousand in 10-12th grade.
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21 Figure 14. Primary and Secondary school students in dissemination of grades as of 2009
Figure 15. Students per teacher in primary and secondary schools, technical and vocational schools, and university and colleges in last four years
By reviewing master plan to develop education of Mongolia 2006-2015, below factors are known as pros and cons to our expansion plan.
Cons
Government encourages private high schools so competition will increase.
Number of students in secondary education may not be as high as in next five years in long run which means as overall market is shrinking.
Pros
Student and family numbers interested in private schools will remain constant if not
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Government policy which encouraging private schools may have positive effects in intellectual and physical resources on Huleg School.
Government pays attention on quantity and quality of teachers thus labor market will be indirectly more competitive and market efficiency is expected to increase.