Competition Analysis: New Nursery Start-up vs. Established Businesses

This dissertation delves into the competitive landscape of the nursery sector, specifically focusing on the rivalry between new start-up nurseries and established businesses. The introduction outlines the theoretical background, aims, and objectives, setting the stage for an in-depth literature review that synthesizes existing research on nursery market dynamics, marketing strategies, barriers to entry, and the legal and economic factors influencing the industry. The research methodology is presented, followed by data analysis that likely includes an examination of market share, consumer behavior, and competitive strategies. The study explores the laws and policies governing nursery establishment, as well as the social and economic aspects impacting the nursery business. The dissertation culminates in a reflection on the research process, recommendations for both new and existing nurseries, and a conclusion summarizing the key findings. The work is supported by a comprehensive list of references and appendices.

Dissertation

Table of Contents
Topic: “ What is the competition between the existing nursery and new start up nursery?”..........3
INTRODUCTION...........................................................................................................................3
Theoretical Background..............................................................................................................3
Aim and Objectives.....................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................8
DATA ANALYSIS........................................................................................................................10
REFLECTION...............................................................................................................................20
RECOMMENDATION ................................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22
APPENDIX....................................................................................................................................24

Topic: “ What is the competition between the existing nursery and new start up nursery?”
INTRODUCTION
Theoretical Background
Childcare nursery are considered to be on an increasing trend which results in high
degree of priority for better care results and outcomes. There is a high pick in the nursery
because it leads to increased level of competition within this sector (Corsaro, 2017). There seems
to be a high degree of competition which in turn tends to exist between primary schools, crèches,
local authority nurseries, etc. Nurseries tends to focus on providing after school care to child.
This study focuses on to start up a new nursery (Davis and Dunn, 2018). Furthermore, this study
will focus on critically evaluating the various other child care providers and day nurseries.
Moreover, the researcher will also focus on effectively finding various existing child care
services within the specific area which eventually helps in evaluating cost related with
establishing new nursery. Subsequently, this study also focuses on demonstrating various laws
and policies which in turn are mainly related with the establishment of new nursery (Narayan
and et.al., 2019). It also examines various social and economic aspects associated with the
nursery business. This study also conducts in- depth analysis on the level of competition which
exists at the time of opening new start up nursery.
Aim and Objectives
Research aim
“ What is the competition between the existing nursery and new start up nursery?”
Research Objectives
 To investigate existing business services of the nursery in a specific area.
 To find out the cost associated with starting up a new business.
Research Questions
 What is the competition between the existing nursery and establishing a new nursery?
 What are the laws and policies associated with establishing a new nursery business in
order to maintain competitive position in market?
 What are the social and economic aspects associated with the nursery business?

 What strategies can be used for overcoming competition?
Rationale
This study is carried out because of the academic interest of the researcher. This study
will help in gaining wider degree of knowledge associated with the competition between the
existing nursery and new start up nursery. This study is also very beneficial for the care sector
companies who has intention to open new nursery. This study helps in gaining relevant
knowledge associated with the study.
Justification and contextualization
The key justification for carrying out the study is that, the nursery business is considered
to be very highly competitive in nature. It is very crucial to identify competition in order to start
new business. This in turn helps in effectively planning investment and various financial
outcomes. This in turn helps the nursery business build a better competitive position within the
market (Davids, 2018). This also helps in updating the nursery business and critically evaluate
the competitive environment. The key problem associated with the research study is that, it is
mainly associated with the competition associated with the business and in turn also focuses on
discovering current market trends. The information which has been collected through the
research in turn helps the new start up business in reducing cost and effectively planning
solutions which in turn aims at fulfilling customer and market demand (Cohen and et.al., 2018).
This study will also be beneficial in effectively identifying the various areas for business
expansion. It is helps in setting attainable targets for the new business and also helps in making
various well informed decision associated with the nursery business.
LITERATURE REVIEW
Literature review is a process which is useful in synthesizing various set of information
by critically analysing the various set of information which has been gathered by gaining insight
from various scholars. This area of study helps in identifying gaps on current knowledge and also
tends to focus on formulating new area of the research.
To investigate existing business services of the nursery in a specific area.
Pinsent, (2017) sought to establish the fact that, Nursery helps in creating an effective
learning environment who in turn has greater social skills. It is useful in developing confidence

among child which results in higher growth and sustainability. As per the annual market report of
the year 2015- 16, the value of the day nursery was estimated to be £5.3 billion. With the stable
volumes and rising fees, the size of the market has doubled. There are large number of investors
from Europe, North America and Asia in turn has entered the market. People who in turn tends
to look for nursery mainly includes full time working parents and single parents. Parents focuses
on engaging in local day care which is near to their home or workplace in order to add ease of
convenience. Additionally, Omar, (2016) investigated that, the child care nursery corporation
makes the 7th largest operator within United Kingdom. Bright Horizons and Busy Bees are the
key competitive nurseries within North America. There seems to be steady growth within the
nursery market. There is increased demand of nursing care in order to provide more specialized
child care services. UK child care market has increased in terms of both size and value.
Marketing efforts associated with new nursery business.
Langford and et.al., (2019) said that, marketing is referred to as the key element
establishing any new nursery business plan which tends to contribute in attainment of improved
long term operational goals. Marketing associated with clearly demonstrating the type of care
services and features like training programs, learning activities, outdoor playground, etc. which
helps in gaining attention of various customers. , Davis and Dunn, (2018) argued that, such
marketing can be done with the use of brochure, advertising letter, advertisement, magazines,
social media platforms like Facebook, Instagram, etc. which is mainly associated with the
nursery. On the contrary, Elamin, Garemo, and Gardner, (2018) argued that, creating a twitter
page, word of mouth, contacting local councils, building nursery website, etc. are considered to
be an effective marketing measure which is useful in gaining attraction of the new nursery
business. Putting advertisement in newspapers, advertising sites of day care, flyers, creating a
memorable logo, advertisement on radio, etc. are considered to be relevant marketing strategies
in order to boost up the attention of the customers.
Barriers and cost associated with starting up a new nursery business.
Additionally, Gerritsen, (2016) investigated that, the key barrier related with the starting
up the new nursery mainly results in requirement of the extensive capital related with employees,
location, licence, permit, infrastructure, expenditures on marketing, etc. On the contrary, Davis
and Dunn, (2018) argued that, the market within which nursery business operates in turn is

highly competitive. There are large number of competitive and already established nursery is
present in the market which makes it difficult for the new nursery business to attract attention of
the customers. It is very challenging for the new nursery business to make individuals believe
about the set of quality care services are provided to their child within nursery. Moreover,
Cellini, Siciliani and Straume, (2018) examined the fact that, change in the government policies
and stringent rules and regulations in turn tends to act as a major obstacle at the time of opening
new nursery. Another major barrier is associated with the availability of the good location and
faculties in order to maintain standard level of quality care and services. This eventually is
considered to be one of the most cost expensive process. The government tends to provide
incentives and subsidiary amount to set up a nursery.
Competition between the existing nursery and establishing a new nursery.
Corsaro, (2017) sought to establish the fact that, there seems to be high degree of
competition within the UK market. There are various already established nurseries in UK which
mainly includes Miss Daisy's Nursery, Cherry blossom pre school, Kensington Kindergarten,
London Nursery school, Maggie and Rose, Redcliffe school, Happy woods nursery, etc.
Subsequently, Narayan and et.al., (2019) said that, the key competitive nursery companies
focuses on providing high quality care services within the nursery. Busy bees also tends to
provide high degree of competition within the health and social care which also offers various
playing activities, nursery programs and games for the children. The nursery industry in turn is
estimated to be worth around £3.6 billion with high degree of forecasted growth of 0.5% from
the year 2018 to 2023. This results in high degree of employment levels and also high degree of
growth in the volume of children joining nurseries. In crease in competition is because of the
high degree of requirement to rise up education standards. On the contrary, Cohen and et.al.,
(2018) argued that, 992 leading UK based nurseries tends to reveal that, there is an increasing
value of 374 companies over the last period. The profitable margin of the 449 companies is
estimated to be 8.4%. Bright Horizon has a market share of around 5.0% and the market share of
Busy bees is estimated to be 0.9%.
Laws and policies associated with establishing a new nursery business.
Elamin, Garemo, and Gardner, (2018) sought to establish the fact that, the government
tends to focus on increasing the level of schemes in order to subsidise the child care. The

research which has been conducted by the association of National day nurseries which states
that, there is high requirement of establishing various schemes and initiatives. Nurseries intends
to focus on following legislations such as Childcare act, 2006, The Children and families Act,
2014, Local authority Regulations, 2012, early year foundation stage order 2012, etc. These
regulation helps in effectively establishing the new nursery business in an effective and efficient
manner. Subsequently, Cellini, Siciliani and Straume, (2018) said that, the key fundamental
aspect which mainly adheres with the various set of rules and regulations at the time of setting up
a nursery. In order to establish a new nursery business, the nurseries need to register with the
various regulatory bodies and also comply with regulatory standards. On the contrary, Omar,
(2016) argued that, the Childcare Act, 2006 tends to focus on providing effective care to the
child. The Early year foundation stage which is mainly produced by the department for education
which in turn includes provision for safeguarding the interest and welfare of the young children.
This also tends to provide guidance to carry out good practice within nurseries.
Social and economic aspects associated with the nursery business.
Langford and et.al., (2019) examined the fact that, it is little hard and complex to start a
day care business within this competitive market. There are various set of concerns which in turn
largely influence the quality of care services within the care sector. Maintaining safe
environment, hiring of expert caregivers, up keeping with the facilities, insurance coverage, fees,
income of the family, inflation rate, etc. in turn are considered to be as the key economic factors
which in turn largely influence the feasibility and reliability of the new nursing business. On the
contrary, Pinsent, (2017) argued that, it is very crucial to examine the employment figures within
which one operates the child care business. It is considered to be one of the most important factor
in order to predict the reliability and success of the nurseries. The chief economic factor is to
examine the non- employment figures within the locality. High percentage and degree of
employment in turn helps in providing quality care services to the child within nurseries.
Likewise, unemployment within the day care services results in poor quality care to the child.
Gerritsen, (2016) sought to establish the fact that, the affluence of the area within which one
operates there business is considered to be one of the most significant factor. Establishing
business with the middle class environment in turn helps families to employ private nannies. On
the other hand, poorer neighbourhood cannot afford such services until and unless they receive
subsidy from the government. Another economic issue which affects the nursery business are

cost associated with the operation of the business. High degree of insurance rates, cost associated
with repairmen and various other operational cost. Economic conditions, cultural environment,
etc. in turn are considered to be the major economic issues which in turn largely influence the
nursery business.
RESEARCH METHODOLOGY
This is referred to as an effective procedure which is useful in identifying and
appropriately analysing various set of information associated with the topic. It is useful for the
researcher to analyse the validity and reliability of the subject matter. This is considered to be as
the theoretical analysis which has been applied to the specific field of the study (Goldberg, and
et.al., 2017). It is considered to be as the systematic plan which helps in conducting research and
providing a general framework according to which the study will be carried out.
Research methods: It is based on establishing the deeper understanding on the relevant
business topic in order to collect useful and reliable information from various multiple sources. It
is distinguished into quantitative and qualitative methods of research study. Qualitative research
methods helps in proving detailed overview associated with the specific research topic. It helps
in gaining in depth analysis on the specific research study (Cuervo‐Cazurra and et.al., 2017). It is
considered to be quite easy approach which helps in gaining specific results. On the contrary,
quantitative research methods tends to focus on gaining generalized results and outcomes. This
technique in turn is useful in understanding the numerical facts and figures related with the
subject matter. This is an appropriate method in enhancing the concepts and understanding
related to the specific field of study. The researcher of the specific field of study has opted for
both qualitative method which helps in critically evaluating the competition between the existing
nursery and new start up nursery.
Research philosophy: This is considered to be as a phenomenon which is useful in
gathering relevant information related with the study. It is distinguished into interpretivism,
pragmatism, realism and positivism philosophy approach (Mohr, Riper and Schueller, 2018).
Pragmatism approach is very useful because it helps in underpinning most mixed methods of the
research. It is considered to be as a problem oriented philosophy which helps in effectively
answering the various set of research questions. The researcher of the specific field of study has
opted for pragmatism approach because it tends to work well for the mixed method. This method

is considered to be relevant because it is useful in fining the relevant answer associated with the
existing business services of the nursery in a specific area.
Research approach: It is a set of broad set of assumptions which helps in addressing
research problems with the appropriate planed procedure (Stevenson, 2019). It is distinguished
into inductive and deductive approach. The inductive approach is useful in addressing various
elements of the study and it also helps in development of the new theories and models on the
specific set of information. On the other hand, deductive approach tends to aim at developing a
hypothesis and testing out the specific set of theory. The researcher of the specific field of study
has opted for inductive approach as it helps in narrowing down the scope of the research
questions of the specific field of the study.
Research design: This is the specific framework which helps in referring to the overall
strategy by integrating various components and elements of the study in a coherent and logical
manner. It is distinguished into descriptive and exploratory design methods (Kennedy, 2017).
Descriptive method is a specific methodology which tends to observe and effectively describe
the behaviour of the specific field of the subject. This helps in investigating one or more set of
variables by answering how, when, why related with the research questions. On the contrary,
exploratory research design tends to provide theoretical idea associated with the specific research
problem. The researcher of the specific field of study has opted for descriptive design in order to
gain insight on the barriers and cost associated with starting up a new nursery business.
Data collection: It helps in collecting new set of data which in turn is useful in gathering
true and relevant information associated with the research topic (Taherdoost, 2016). It is
distinguished into primary and secondary source of collecting data. Primary data is the original
set of data, but the secondary data are the already collected information. The researcher of the
specific field of study has opted for both primary and secondary source of collecting data.
Primary data in turn will be collected through questionnaire in order to gain relevant and detailed
information associated with the competition between the existing nursery and new start up
nursery (Mohajan, 2018). Secondary research will be carried out for literature review which
helps in gaining relevant information by various scholars.
Sampling: This method is useful in carrying out statistical analysis with pre- determined
number of observations. It is distinguished into probabilistic and non- probabilistic sampling
method (Wiek and Lang, 2016). Random probabilistic sampling method has been used because

every participants has equal chance of getting selected within the specific sample size. The
researcher of the specific field of study has opted for random sampling method where 100 study
participants such as employees and owners of the existing nurseries are selected within the
sample size. It helps in collecting accurate data without any biasses.
Data analysis: It is an effective procedure to inspect, cleanse and model the information
which has been gathered from reliable sources (Bresler and Stake, 2017). It helps ion forming
conclusive results which are useful for better decision making. It is distinguished into SPSS tool
and thematic analysis. SPSS analysis is useful in performing various statistical analysis of the
complex data in order to reach conclusive results (What Is SPSS and Its Importance in Research
& Data Analysis?, 2018). Thematic analysis on the other hand helps in analysing various
patterns of the research topic in order to reach conclusive results by attaining aim and objectives
of the research.
The researcher of the specific field of study has opted for thematic analysis where the data will
be presented through charts and graphs which helps in summarising large number of data.
Ethical consideration and limitation: The researcher of the study tends to maintain the
confidentiality of the various participants and also ensure safety to the participants. The dignity,
anonymity and respect of the participants is maintained (Kumar, 2019). The research has been
carried out by maintaining honesty and transparency while carrying out the research. The
researcher ethically comply and adhere with various laws and standards. One of the major
limitation associated with this research is linked with lack of reliable information which in turn
exists within the specific field of study. Time constraints is also one of the major limitation
which is faced by the researcher. There is a high degree of risk associated with inaccurate
feedback which in turn largely influence the relevance of the study.
DATA ANALYSIS
Theme 1: “Familiarity with the concept of nursing business”
Particular Number of respondent Percentage of respondents
Yes 91 91
No 09 09

Total 100 100.0
Interpretation: Collected data by the way of questionnaire has helped in analysis that
there is good sort of knowledge about the different aspect of nursing business among the
respondent in the market. This is a very good sign for the study, as it will help the scholar in
getting good and efficient knowledge about the different aspect of nursing business in the
organization. As, all the respondent will give more efficient opinion of their on different
question. Collected data helps in interpreting that out of 100 respondent pool 91 respondent has
gone with the option of yes and remaining 9 respondent has gone with the option of no regarding
familiarity with the aspect of nursing business.
Theme 2: “Care Service is most commonly used nursing service”

Particular Number of respondent Percentage of respondents
Care service 64 64.0
Training 20 20.0
Outdoor playground 4 4.0
learning activity 12 12.0
Total 100 100.0
Interpretation: Primary data collected helps the scholar in understanding that care
service is one of the most common service of the existing nursing business in the UK market.
This was also highlighted by the author in the LR section of the dissertation. As author has
highlighted that care service is the primary service of nursing organization. This services is
supported by variety of different secondary service in the company. Collected stats shows that 64