Background and Introduction

The education industry encompasses a wide range of institutions and organizations that provide educational services, including schools, colleges, universities, vocational training centers, and online learning platforms. Education plays a critical role in personal and societal development, and as such, the education industry is essential for the progress and growth of individuals and society as a whole.

In recent years, the education industry has undergone significant changes and faced various challenges, such as rising costs, increased competition, and evolving technology. These factors have led to the development of innovative educational approaches and technologies, including online learning platforms, gamification, and personalized learning.

The education industry is also subject to various regulations and policies, such as government funding, accreditation requirements, and curriculum standards. These factors can impact the quality and accessibility of education and shape the direction of the industry.

The education industry plays a critical role in preparing individuals for the workforce and providing them with the necessary skills and knowledge to succeed in their careers. It also contributes to the development of new technologies, research, and innovation, making it an essential component of economic growth and development.

Industry Information

Political Factors

Political factors play an important role in the education system of the economy as the government sets the rules, strategies, regulations, and other educational policies, which are followed by private and public educational institutions. It is the government that decides the minimum education or skills required to be a teacher or tutor. Curriculum changes are approved by the government according to the time limit. Sometimes government takes initiatives that help in strengthening the educational industry like introducing the American board of the British board. Some issues further affect the educational institutions like fees, loan schemes, self-financing, and targets to be achieved (Simpson, et al, 2015).

Economic Factors

Numerous economic factors affect the educational industry in any country. Many students are forced to take student loans which is a big amount in countries like the UK. This is a negative point since due to this many students have to start their careers with setbacks. Many students are unable to repay their debts and hence getting higher education becomes a less attractive option. A high unemployment rate also discourages students to gain higher education. People are willing to get a good education to get high paying jobs. Due to shortages of jobs in the economy, a good degree holder has to sometimes work a less paying job (Bush, 2019).

Social Factors

This factor also plays an integral role in the education industry. As the birth rate declines which reflects the national trends, hence more young students enter the mainstream. Changes in the local population help in increasing or decreasing the numbers of students, as many people prefer to study in foreign countries. Universities providing scholarships and marketing themselves on social media helps to attract students globally. Parental preferences have also influenced the choices of schools or institutions by students (Simpson, et al, 2015).

Technological Factors

In developing countries, advanced technology in education is not implemented yet. However, it is expected that all countries will be able to use advanced computers and PCs which will help them to find the answer to their queries in full motion, video graphics, and voice communication instead of written texts. It is believed that personal digital assistants will be book-sized electronic devices that will be used for communication and performing all digital tasks. Nowadays, when all institutions globally are shifted to online learning, companies are looking forward to providing the fastest tablets, laptops, or mobile devices for the ease of students (UK Essays, 2018).

Environmental Factors

Many developed countries are experiencing a digital and eco-friendly revolution, which helps them to reduce the commute, hence this will protect the country with less pollution as compared to before. However, this change will need the cultures to be more potential for adopting this method of working. The use of private and public transport and parking facilities is becoming a problem as the sector is dominated by the city-centre campuses, thus a large number of students and staff are expected to commute. Moreover, due to COVID-19, most countries have shifted their entire education system to online learning, this helps the economy to protect the environment (Simpson, et al, 2015).

Legal Factors

Here are some of the legal factors that affect online learning. The effective online learning system is a new normal for the economies across the globe because of the novel Coronavirus. Effective online learning needs significant cooperation from educational publishers, who usually have strict rules and regulations on the way they distribute materials. For instance, all textbooks and workbooks cannot be shared digitally. Moreover, there are certain criteria for recruiting tutors and teachers which is generally very strict with regards to higher education (UK Essays, 2018).

Conclusion

PESTEL analysis looks at various aspects of the educational industry, which are affecting the businesses in the economy. Due to the high population and foreign students, government plays an important part in the enrolment of students and recruiting staff. However, in countries like the UK and the US, expensive tuition fees play a hindering role in students getting higher education. However, the future use of advanced technology in this sector is an important and interesting aspect.

References

• Bush, T. 2019. PESTEL analysis of Higher education in the UK. [Online], Available at: https://pestleanalysis.com/pestle-analysis-of-higher-education-in-the-uk/, [Accessed on: 13th June, 2021].
• Simpson, E., Hart, J. and Place, W., KY16 8LA Tel 01334 463963 e-mail jjh2@ st-Andrews. ac. The UK.
• UK Essays. 2018. PESTEL Analysis of Education System in India. [Online], Available at: https://www.ukessays.com/essays/education/pestle-analysis-of-education-system.php?vref=1, [Accessed on: 13th June 2021].