The very fact that there has been a tremendous increase in the number of colleges and private institutes teaching MBA shows that there is a profitable job market for the aspirants for this subject including jobs for new MBA graduates. The number of applicants for institutes like IIMs has also increased a lot. If one gets admission in any one of the premier MBA institutes in India, it is an inevitable fact that they land up getting good jobs and of course bigger pay cheques. Thus it is a perfect opportunity of development for students hailing from a middle class background. MBA jobs in India provide gigantic challenges for the generation next as they will not only be the jobs of the future, they will be the most perfect and money-spinning jobs of the future.
The major institutes in India which have created their own brand in the coaching industry are T.I.M.E, Career Launcher, IMS, PT, Career Forum and Cliff High. These institutes started as local players and then slowly started creating impact in the market. They have now become national players, though they are strong in the region from where they have started. They are now franchising all across India . T.I.M.E has more than 60 centres all across India . Similarly, Career Launcher has close to 60 centres. IMS has 45 centres across India . PT is having close to 40 centres.
This project aims at analyzing the functioning of CL, Lucknow in past and present vis-à-vis to its desired functioning in future.
We have tried to achieve following objectives through our study:
• The brief history of CL, India and more specifically CL, Lucknow .
• The practices being followed at CL, Lucknow
• Changed scenario due to the emergence of new local competitors
• Micro-economic analysis of CL and suggested future courses of action.
To achieve objective 1 and objective 2, we took help of informal interviews besides the information gathered from various sources such as internet, newspaper, articles etc. It also involves the growth of CL, Lucknow with respect to its competitors. This will also involve a thorough study of the impact of CL, Lucknow in the arena of management entrance examination sector in Lucknow . This will present the past and current standing of CL.
To achieve objective 3, we will collect the data of the other players in the market and study it in the overall perspective. The next step involves trying to explain the data collected and collate on the basis of the various parameters like customer base, customer satisfaction, economic indicators, geographical distribution .The data collected will be analyzed using various micro-economic tools like Advertisement Elasticity of demand of CL with respect to the industry and other players. We would also try to explain what are the most important variables affecting the performance of CL with the help of Co-efficient of determination. We will try to explain this using the indifference curve.
To achieve objective 4, we will use the methods pertaining to forecasting. This will be done using the past performance of the organization.
Importance of the Study
The Market size is growing at a decent rate but at the same time it also becomes price sensitive. Awareness in the rural belt has also grown up. The major push in the growth is provided by the inclination of the neighbourhood rural belt. The large chunk of students have realised that CAT is above their level and hence they are keen for the preparation for MAT. MAT segment has seen a huge growth in the recent past. MAT segment is likely to grow in future as the difficulty level of CAT is increasing.
In Lucknow , the main competitors are Time, IMS, & ICC. There are some new faces which have come up like AMS, P.T. and CF. So, the market is facing fierce price versus quality war. On one hand branded institute like IMS have reduced their standard price by approximately 40% and got the good number of students and on the other hand institute like Career Launcher are still increasing price and even they got the good number of students. The local and small players in the market like P.T. and C.F. are also pushing the market price down. Here, the difference of branding is very evident as Career Launcher managed to increase the number of students with the highest Fees in the market.
In the recent months the noticeable change is in the rise of students keen to write MAT (Management Aptitude Test). The students now realises that CAT is not for mediocre. Hence the students are shifting towards MAT as more feasible option taking into consideration their intellectual level. Though the demand for the CAT is also increasing but not at such a high pace. Anyways, this is not going to affect the institutes preparing the students for various exams, since the student will be enrolled in one course or the other.
By doing a regression analysis on the inputs of CL we will suggest changes in the inputs so as to increase the profit by any desirable amount. We will suggest the proper stage of production through which CL is going and thus advise proper steps to be taken in order to maximize the profit. We will also show the position of CL vis-à-vis its competitors so that steps can be taken to sustain in the market.
Kedar Joshi , Nikhil Bansal , Pradipta Dasgupta , Saini Das , Tapas Mohapatra , YESSVSDPK Kumar
Economics book, Lipsey
Career Launcher, Lucknow