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Industrial Analysis

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IV Situation Analysis
Industry Analysis

An industry analysis is a component of the business plan that provides statistics about the market potential of your business, product and services. The analysis contains specific information about the current state of the industry and target market. According to the book, “Essentials of Marketing 6th ed.”, an industry analysis should also include a report of the trends, competitors, customer profile and technology within the industry.

Industry Overview
The US colleges and universities industry includes about 4,300 degree-granting institutions with combined annual revenue of approximately $400 billion. Sixty percent of industry revenue is generated by state-operated public schools, 40 percent by private schools. Some 1,700 schools are public, another 1,600 are private nonprofit institutions, and about 1,000 are for-profit private schools. Close to 75 percent of students are enrolled in public schools. Mainly because of big state universities, the industry is concentrated: 50 percent of all students are enrolled in the 400 largest schools. Among the fastest-growing UTPA is ranked in the top ten.

Industry Forecast
US personal consumption expenditures for higher education, a major driver for university and college revenues, are forecast to grow at an annual compounded rate of 2 percent between 2009 and 2014. Data Published: October 2009.

Industry Indicators
The bank prime loan rate, an indicator of colleges' and universities' cost to finance construction, renovation, and other capital projects, remains at 3.25 percent as of the week of March 10, 2010, unchanged from the same week in 2009.
US personal income, which drives consumer ability to pay for higher education, rose 1.1 percent in January 2010 compared to the same month in 2009.

Trends
Demand for higher education services is largely driven by population

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