Graded a Goner? Who is Next?

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reisgio
Posts: 206
Joined: Sat Oct 18, 2014 10:17 am

Graded a Goner? Who is Next?

Post by reisgio »

Let's face it, there is only so much money and so much demand for global education these days. With news that Avenues: The World School is planning to open a campus in Sao Paulo starting in August 2018 after already having a very successful launch in NYC, and with reports that the company plans to eventually open up campuses in Hong Kong, Shanghai, Beijing, Delhi, Mumbai, Rio de Janeiro, Buenos Aires, Mexico City, Johannesburg, Abu Dhabi, Doha, Tokyo, Singapore, Seoul, Sydney, London, Paris, Moscow, Madrid, Milan, Frankfurt, Miami, Washington, Los Angeles, San Francisco, and Boston, how do you think this will change the international school market? Will Graded in Sao Paulo be forced to up its game or will demand for it fall? Will some schools be bought out or simply driven out of business? Which city is primed for the next Avenues school? What cities could most use some global/international school competition? Are some internationals schools just resting on their laurels a bit too much?

While there may be a short term uptick in demand for international teachers, will it last and will the demand be for those teachers currently in the market or other teachers currently not in the market. Be aware of Avenues. It has disrupted the NYC private school market a lot despite the many big players there. Imagine what it can do in cities with only one or two strong international/American-style private schools.
wrldtrvlr123
Posts: 1173
Joined: Sat Feb 06, 2010 10:59 am
Location: Japan

Re: Graded a Goner? Who is Next?

Post by wrldtrvlr123 »

Interesting development. It will be even more interesting to see how their model functions when they open schools in markets where they have to recruit, transport, maintain and retain Western trained teachers in an overseas environment.
vandsmith
Posts: 348
Joined: Sat Oct 25, 2014 12:16 am

Re: Graded a Goner? Who is Next?

Post by vandsmith »

never heard of them before. a quick wiki search doesn't reveal anything extraordinary. it'll work likely in high money markets like dubai. what's so good about them? i.e. why are you worried?

V.
senator
Posts: 384
Joined: Tue Sep 19, 2006 1:53 am

Re: Graded a Goner? Who is Next?

Post by senator »

The death knell for international education - meaning when IE was no longer an oasis of great pay, cheap travel, good schools - was the internet, which opened the world of IE to everyone, mainly young kids with no experience but a willingness to work for peanuts. In my experience, these kids also provide the added benefit of being mild and malleable. In my day, youth spoke out and were a catalyst for change. Now, a twenty-something (or even 30-something) is a YES man, sucking up to the principal and playing the political game in order to keep their paltry salaries.

What happened to make these kids so cowardly?
PsyGuy
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Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Response

Post by PsyGuy »

My first issue is with the assumption there is only so much coin and demand for global education. No one 25 years ago would have pictured that IE would be what its become. IE is still showing growth potential across many categories, virtual IE is still largely in its infancy. New curriculum programs are still being developed. The business model is still flexible and has plenty of room for expansion. The IB hasnt ruled the world yet.

The second issue is that much of the talk about graded is just that talk. Its organizational hopes and dreams, it hasnt happened yet, and while a second IS after a single campus launch is pointed in the right direction, its a long journey from the empire they envision. Many chain ISs like QSI, Dipont, UWC, etc. all have plans, goals a vision, none of them are the defacto anything yet. Ambition doesnt equal execution.

In reply to your queries:

1) Its not going to effect much of IE, they will be a large chain IS closer to the scale of QSI than the global IB, and even IB is small compared to the vastness of ISs. Theres room for another chain IS and IE wont blink.

2) I doubt graded will up its game, Im sure they have a market focus and that focus is not in being the best or the greatest but being highly accessible from both an admissions perspective but revenue model as well.

3) Not going to really drive anyone out of business, the IE market space is becoming less competitive and more collaborative as ownership recognizes that the market is as large as it is. The majority of IE is not scraping for the small population of multi nationals and embassy kids, they have recognized that the "International Education" market is a branding concept for DE. Another IS in Tokyo, Paris, London, HK, Seoul, Shanghai, Beijing, etc. it will probably take a couple years after the ISs inaugural year before anyone even notices another IS in town.

4) The next location, probably Asia, Seoul has the best market. They will want to expand globally meaning putting a founding school on different continents.

5) The Americas locations they have one of the least developed IS markets.

6) Yes a lot of the elite tier ISs rest on their laurels. The upper IE tiers are very stable and secure, it would take massive resources to unseat one of the elites and its not a fast process. Many of them can coast and many arent much better then a well resourced and affluent DSS in the west.

7) One iS every couple of years, isnt going to effect recruiting metrics at all, it would be artifact in the scatter plot. The only noticeable difference in IE recruiting is when they recruit on the circuit in regions with high desirability. Add a French IS of Tokyo IS to the fair circuit when there are only a couple that actively recruit from the fair and youll see some changes. Add another recruiting IS to China and no one will notice that there are 11 and not 10 ISs.

8) Depends on their location, they will have younger ITs in LCSA than they will have in WE, when your actively recruiting in high desire markets you can be more selective, because your applicant pool is bigger.

9) It disrupted NYC because of the market demographics of that population, and the makeup of the DE options. Charters have a lot to do with it.
"American" style education isnt the holy grail of IE, ASs only appeal to Americans and locals without options. The UK and the WE is pulling market share from USNCs.
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