Strategic Initiative of G8 Education: SWOT Analysis and Recommendations

Running head: STRATEGIC INITIATIVE OF G8 EDUCATION
Strategic Initiative of G8 Education
The Name of the Student:
The Name of the University:
Author Note:

1STRATEGIC INITIATIVE OF G8 EDUCATION
Strategic Initiative:
The dynamics of today’s world is changing rapidly. Therefore, the organisations need
to analyse the internal as well as the external forces that effect the development of the
organisations, and plan strategies accordingly. On this context, SWOT analysis is the most
useful analytical tool to understand the internal and external forces that effect an organisation
(Kajanus et al., 2012) and help to make strategic plans according to the changes (Hill, Jones
& Schilling, 2014).
SWOT Analysis:
Strengths Weaknesses
 Steady financial power
 Balance sheet
 Effective Multi-brand strategy
 Strong market position
 The strategies are easy to be copied
 Unable to mitigate the challenges of
new entrants
Opportunities Threats
 Expansion in similar business field
 Expansion in product category
 Expansion in small cities
 The expansion of Non-for-Profit
organisations
 Changing consumer behaviour
Strengths: G8 Education has a strong free cash flow, which indicates the company is
financially powerful. This free cash flow enables the company to plan new projects and
increase its assets. The balance sheet of G8 Education continues to be conservatively geared,
and would help the company to increase the acquisition. The company holds a strong position
in the market, which enables it to build reliable relation with the suppliers. The company’s
multi-brand strategy that includes Kindy Patch, Early Learning Services, Bourne Learning,
Community Kids, and World of Learning, helps the company to gain the combined profit of
multiple centres.
Weaknesses: The greatest weakness of G8 Education is that the other companies in his
industry could easily copy the company’s strategies. In this way, the strategic value and the
competitive advantage of the company would be reduced. Another major concern that the
company is facing is the challenges of new entrants in the market, as so far, the company has

2STRATEGIC INITIATIVE OF G8 EDUCATION
been unable to manage those challenges.
Opportunities: G8 Education has diverse scope of expansion. As the company currently is in
early child education business, it is easier for it to expand into similar fields of child
development and educational business. Based on the changing demands of the customers, the
company has the opportunity of bringing change to its current products and creating new
productline. The demand for childcare institutes is significant, which creates the opportunity
for the company to expand the business in new market segment, such as in small cities where
the population has lower income.
Threats: A significant external threat of the company is the expansion of the Not-for-Profit
organisations, as these are giving G8 Education a tough competition with their low pricing.
The existing supply chain model of the company is driven by physical infrastructure of the
business. Therefore, the change in the buying behaviour of the consumers, that is preferring
online channels, is a substantial threat to the company.
Recommendations:
Analysing the internal strengths and weaknesses of G8 Education and the external
opportunities and threats of the market, recommendations can be made for the growth of the
company. Considering the steady financial growth, strong market position, and the effective
brand strategy of the company, it can be said that it has the advantage to initiate new
ventures. Therefore, the recommendation would be expansion, which has two crucial
elements in it.
 The company has the scope of expanding to smaller cities among the lower income
families to gain competitive advantage.
 In order to gain a competitive advantage, G8 Education should provide quality
education with lower prices.
Justification for the Recommendations:
The most suitable strategies for G8 Education would be the Business Level Strategy
(BLS) and Corporate Level Strategy (CLS). The fundamental conception of the BLS is to
enhance the existing company strategy to gain competitive advantage in order to respond to
the competitive threats (Wheelen et al., 2017). Gaining competitive advantage is about
providing the customers products and services that the competitors are unable to provide, and
to do that the company has to differentiate the specific needs of the customers. In other
words, the company requires being innovative in product and service designing.