introduction to market analysis

8/10/2019 introduction to market analysis

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Introduction on market analysis for GUC MBA

In the last few decades new tendency was emerged in Egypt is to go towards theprivate university education rather than the government university education. Thistendency was created because of the hardness of the government university education

and its hardiness composed of the huge amount of theoretical education with lowpractical education. So this trend was created because of the awareness of theEgyptian parents about the practical education and how it is effective after graduatingfor their children to get hired in outstanding companies. Based on this perception a lot ofbusinesses have evolved to fulfill this need, they promised with high practices and goodtheoretical.

Several universities have emerged in the Egyptian market to get benefit from servingthose people with the private universities perception for example GUC, FrenchUniversity and British University etc... We notice from the style of these universities thatthey have studied the Egyptian market and concluded that Egyptian perception towards

the European education is very good.

GUC have got its reputation among its competitors with high quality of education, andthat didnt come by luck, but by the hard work among the internal employees and thehigh experienced educated staff.

The German University in Cairo, GUC, is an Egyptian Private University founded by thepresidential decree 27/2002, according to the law number 101/1992 and its executiveregulations number 355/1996.

GUC is established in cooperation with the State Universities of Ulm and Stuttgart,under the patronage of the Egyptian Ministry of Higher Education, the Ministry ofScience, Research and Arts, State of Baden-Wuerttemberg, Germany, and supportedby the German Academic Exchange Service (DAAD), the German Embassy in Cairo,the Arab/German Chamber of Industry and Commerce (AHK), the Federal Ministry ofEducation and Research, Germany, The State University of Tuebingen and The StateUniversity of Mannheim.

Contains four undergrad faculties

1. The Engineering Group (Engineering and Materials Science, InformationEngineering and Technology, Media Engineering and Technology)

2. The Biological Sciences Group (Pharmacy and Biotechnology)

3. The Management Group (General Management, Technology-basedManagement and Business Informatics)

4. Applied Sciences and Arts Group (Graphics Design, Multimedia Design andProduct Design).


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In German University in Cairo a backward and forward market, and in each market wehave the demand and supply as any organization.

(Input Market ) (Output Market)

The most common demand and supply in the input market is

- Land

- Labor

- Capital

Price, Substitutes price and Taste are the main determinants for the GUC demand inthe short term and the long term. GUC has a very well known taste which is theEgyptian perception towards the German industry culture and education, adding to thatthe intermediate price among the other competitors which give approximately the sameservices. Its substitutes, which are the high institutes and other education centers, givelow reputation with nearly the same price.

But for the long run determines of GUC services demand, reputation and the amount ofresearches conducted by GUC researches could add market value for the GUC which

lead to the huge increase in the demand but with fixed numbers of the studentsdetermined by the ministry of high education which indicate to the increase of the priceof the education services.

GUC needs the land and the nature resources to build up the campus, it also needs the

labor to build and install the equipment usually are skilled labor, finally all the Manmade

from equipment to material and buildings.

German university in

Cairo

GUC

Backward

market

Forward

Market

Demand Supply

SupplyDemand


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Also there is forward market for GUC and this forward market includes demands and

supplies

Example for the demands in the forward market is the Professors, lecturers, instructors.

In the supply market there are faculties for undergrad and for post grad plus the MBAprogram.

Analysis for the GUC MBA forward Market

If we take the Master of business administration (MBA) as one product from the forward(supply market)

MBA program is designed and executed to prepare students to assume managerialpositions of increasing complexity and challenge. This is done through a curriculum andstaff that emphasize leadership, strategic thinking, global awareness and ethics

The MBA have multi majors as Strategic Management, Finance, Human Resources andorganization Behavior, Entrepreneurship and Technological Innovation, InformationSystems, International Business, Accounting and Financial Control, Marketing,Operations Management

We will find that this product has customers (demand) as the foreigners and localstudents and everyone is targeting one of the above majors.

And practically the law of demand is applied here as the price of the MBA programincrease the demand on the programs decrease and vice versa.

And the clients, GUC are usually observe the alternative, as we have near and faralternative,

Near alternative is MBA program in any different private or local university (competitors)with lowest price and may be same quality.

Far alternative like Mini MBA in other institutes and educational centers, also we canfind alternative in the master of management degree or even any managerial post graddegree.

When we return back to GUC we will find that there are many complementary productswith the educational service. The most important is the transportations, the GUC offersbuss for the students and staff, not only the buss but also the food and beverage, sportsarea.

GUC plays on the law of demand by making offers for the lower price for every highscorer and even free of charge also it offers packages for the GUC staff to take theMBA without or with half the price upon a three or two years working contracts.


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Long term demand is in consideration as the internet and newspaper plays an importantrole in the demand.

From the supply view the GUC try to introduce the Hi tech in the teaching field, from theavailability of computers, beamers and smart boards.

Conclusion and comments

My conclusion and comments that GUC targeting customers with advanced awarenessand middle to high level of Income who can evaluate the value of service offered andcan invest in the humans to gain more than money from this investment.

According to the market efficiency point of view, the consumer and producer surpluscould be attained. There are no externalities that the welfare will depend on and there isno market failure discovered to offer this kind of services. The customer willingness topay more to this kind of services is high for a vast majority of Egyptian parents based onthe previously mentioned perception. And with this comparative price the supplier(GUC) gain more than the cost of production which attains the producer surplus.

The group segmentation of the private universities contain the AUC, GUC, BUE, FUE inthe first segment and others come next, adding to that the low price for services thatGUC offers compared with the leader and the follower in this field, and finally the high

reputation it gained in the few last years, assuring to it a very good market even if itincreases its services prices.

introduction to market analysis

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