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college may be differentiation in terms of style, high quality teaching, research, commercial activities and income, size and scope.

3.2. The Threat of Substitutes:

Occasionally, substitutes render a serve, training or course of studies at a college or universities in an education sector redundant. From a strategy view point, the key issues to be analysis are:

(a). The possible threat of outdated courses.

(b). The ability of students to switch to the substitute.

(c). The costs of extra aspect of the service/training that will prevent student switching to other colleges or universities.

(d).The likely reduction in profit margin if prices come down or are held.

Substitution reduces demand for a particular class services, training as student switch to the alternative hi-technical oriented courses. This depends on whether a substitute course of studies provide a higher perceive benefit or valve. For example BA or BSC honours degree in Accounting is losing way for ACCA professional Accounting programme.

There could be training -for-training or course-for- course. For example Electrical engineering for Electrical and Electronic engineering; Diploma in nursing to project 2000 degree programme for Nursing. More recently traditional universities and colleges have also suffered as colleges tuition fees become cheaper and the as low price substitute.

3.3. The Power of Buyers and Suppliers:

These two forces are considered together because they can have similar effects in constraining strategy freedom of a new college of higher education and influencing the profit margin that is financial attractiveness. The buyer’s set of cultural factors – culture, subculture and social class may determine who will be schooling at the new college. Schiffman and Kanuk (1983, pg. 404-420) suggest that, in the western world at least, these include achievement, success, efficiency, progress, material comfort, practicality, individualism, freedom, humanitarianism, youthfulness and practicality. It is these which determine and drive overseas students to study in London. The fact that the Private Equity Syndicate management planned to establish a new college in London; The search for location, premises, resources (hiring staff, tools, lecture room). The management have to apply bargaining power to negotiate for good deals in other words minimise waste in other to maximise profit.

3.4. The Extent of Competitive Rivalry:

The intensity of rivalry is the most obvious of the five forces in an education sector and the structural determinant of the degree of rivalry, the direct competitive rivalry between the proposed new college and its most immediate (already established institution locally and globally within the overseas student market) rivalry .

Education sector in UK are relatively equally sized players often compete vigorously to outdo and gain advantages.

Education sector growth rates may affect rivalry. The degree of rivalry also have behavioural determinant. If other establish universities and colleges have diverse objectives and attach high strategic stakes to their position in the education sector, they are likely to compete aggressively.

Another attributes that influence rivalry is related to