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the education basic condition as regard capital-intensive education sector .High fixed cost new UK government law(stated that new colleges entrepreneur or partnership must have ￡2m standby in their account apart from investment), excess capacity, slow growth and lack of education services and training differentiation all increase the degree of rivalry.

When its difficulty or exit from education (perhaps due to legislation on redundancy cost). There is likely to be increased rivalry.

If it’s difficult to differentiate education service, then competition is essentially price-based and it’s difficult to ensure customers loyalty.

High fixed cost in education industry may result in price war and low margin if proposed new college capacity exceeds demand as capacity –fill become prerogative. Some institution collaborate or and affiliate with established universities or a professional bodies in new capacity through joint competitive rivalry.

If entrants (proposed new college) have express a determination to achieve a strategic stake in the overseas student market, the cost of such an entry would be relatively unimportant when related to the total cost of the college concerned and long-term advantages of a present in the overseas student market. Alan Zakon (1971) of the Boston Consulting Group has highlighted the significance of the firm’s maximum sustainable growth. This would be achieved by a series of strategy changes.

4. EXTERNAL PRESSURES ON EDUCATION INSTITUTION:

King (1991, pg. 3) pointed out that the pressures on education organisation during the 1980s were formidable and it is likely that these pressures will intensify.

The new

College

Customer characteristics

Attitudes, income, ages,

Location, education

Competitive activities

Tuition Fee (Price),

Market, Promotion,

Type of Courses (product)

International business conditions

Balance of payments, Exchange rates,

Foreign competition

Domestic business conditions

Investment, mergers, inflation, border agency, prices-tuitions, education standard bodies, trade union actions

Technological progress

Patents, new courses, new processes

Government activities

Laws, taxation, lobbying, pay and price policies

Social and political climate

Image, ethics, culture, ethnic and religious factor, ecology, public relation

New entrant

New universities,

New colleges, Professional institutions extending programs

Similar views are offered by Hussey (1989) and Buckley (1991). The range of external factors impacting on education organisations is shown in figure 5 above, although this is not intended to be an exhaustive portrayal.

5. RECOMMENDATION

An analysis of firm’s resources has to involve more than just an internal assessment of which activities the firm performs well. It is only when resources contribute to competitive superiority in training overseas student in the new college within the overseas student market that they will be valuable.

Strategy management has as an ultimate objective,