Essays on Situational Analysis of the Child Care Industry in Canberra Case Study

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The paper "Situational Analysis of the Child Care Industry in Canberra" is a perfect example of a marketing case study.   The purpose of this paper is to offer a situational analysis of the child care industry in Canberra. Canberra has a large number of daycare centers that exceeds one hundred. In Canberra, the daycare centre will be subject to competition from other daycare centers such as Weston Creek Children Centre, Noah’ s Ark Children Resource Centre and St. Jude Early Learning Centre. The market segment that Safe Toddler childcare will focus on will be those who are within a 10-mile radius of Canberra.

There will be a consideration for parents who wants their children to stay at the day either on a part-time or full-time basis. 1.1 Full time working parents Safe Toddler child care will aim at establishing a large customer base in this segment so as to institute healthy and consistent revenue for the centre so as to enhance the stability of the daycare now and in the future. 1.2 Drop-ins/part-time workers This market segment will comprise a small percentage of the total revenue. Though this segment is not the primary focus segment it will be essential in supplement revenues of the child care centre. Industry overview It has been noted that Australia is set to experience a mini baby boom in the next 5 years to come and the childcare industry among others will set to surge as the birth rates in Australia rises by about 6.4% (Sadauskas).

The industry generates revenue that amounts to $11 billion and has an annual growth rate of 11.7% and employees around 165, 500 people (IBIS World); additionally, it is rated among the five top occupations.

In relation to employee turnover, there are high rates of turnover in the industry and its seen as an industry-wide issue that needs to be addressed with urgency. Some of the critical factors to the success of childcare centers are: A competitive price Educated and knowledgeable instructors to enhance safety High quality of child care services Meeting the needs of the target market such as the working parents Factors of the uncontrollable environment PESTLE Analysis PESTLE analysis also referred to as the PEST analysis is a concept that is applied so as to tract the environment that is business is operating in or plans to operate in. Political factors The political factors are termed as the factors that tend to determine the degree to which a country government may influence the economy or at the same time in a certain industry.

The daycare centers are not different from other players in different industry and they are affected by a number of political factors though they are minimal as compared to other industries (Aaker & McLoughlin 54). The political situation in Australia can be termed as a peaceful one and this is likely to have a positive impact on the business.

Based on these, the daycare has favorable conditions in relation to the political environment and thus Safe Toddler daycare will operate effectively without any kind of political interferences. A major positive impact is there has been a reduction in the standard mileage rate since in 2015 the rate stood at $. 575 per every business mile but the 2016 rate stands at $. 54, thus daycare centers will benefit from the slight reduction (Copeland).


Work Cited

Aaker, David, and McLoughlin, Damien. Strategic Market Management – Global Perspectives. West Sussex: John Wiley & Sons Ltd. 2010. Print.

ACT Government. Legislation and Regulations. 2015. Web 15 April 2016. .

Australian Bureau of Statistics. Australian Capital Territory 2013. Australian Bureau of Statistics. Web 15 April 2016. .

Canberra. Canberra Create your future. N.D. Web 15 April 2016. .

Care for Kids. How Do We Stop the Churn and Burn in Child Care Centers? Care for Kids, 2012. Web 15 April 2016. .

Copeland Tom. 2016 Standard mileage rate announced. 17 Dec. 2015. Web 15 April 2016. .

IBIS World. Child Care Services in Australia: Market Research Report. IBIS World. 2016 Web 15 April 2016.

Kotler, Philip, and Kevin Lane Keller. Marketing Management. Upper Saddle River: Prentice Hall, 2006. Print.

Sadauskas, Andrew. Childcare Industry set to surge 34.2% over five years as Australia birth rate rises. 14 May 2015. Web 15 April 2016. .

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