Industry Analysis & Industry Trends
Many online businesses have developed convenient tools and programs for students as a substitute for industry services. Low employment has further depressed consumer spending on tutoring and test preparation. To attract clients, industry franchises have spent an increasing proportion of revenue on high-quality teachers and marketing, which have caused costs to skyrocket and hurt profitability. In the next five years, the industry will benefit from rising employment, school enrollment, government funding and disposable income. Nonetheless, competition from online-only services will still represent a challenge.... purchase to read more
Industry Report - Industry Analysis Chapter
Escalating competition from online services and low employment have hampered industry growth since the Great Recession. During this time, employment declines resulted in more free time for students to study on their own, and allowed parents to help their children study, which diminished demand for industry services. Anemic employment also resulted in low disposable income and dented consumer spending, especially on high-end personalized industry services. IBISWorld expects that revenue for the Tutoring and Testing Preparation Franchises industry has declined at a 0.2% annualized rate to $840.4 million during the five years to 2013.
The industry has faced escalating competition from online tutoring and test preparation services... purchase to read more