The online education industry outlines the method and process of teaching and learning through technological tools and equipment like TV, internet, video conferencing, and others. Online education also goes by the names remote learning, distance education, distance, and online learning. Today, we’ll discuss the PESTLE analysis of Online Education Industry; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Online Education Industry
Some of the main political factors in the Online Education Industry PESTLE analysis are as follows;
I-Government Regulations
Government regulations and policies are variable for educational institutes and online learning platforms. They comprise educational syllabus, fee structure, vacation criteria, learning hours, dressing codes, skill learning criteria, and others. However, the educational policies and regulations of different countries are variable depending on the country’s infrastructure and the need for a particular type of education.
II-Political Stability
The stable political environment of the country plays a key role in the growth of the education industry. When the country is going through political turmoil, violent activities, internal civil war, and other issues; it becomes highly difficult for students to focus on their education and learning. The violent political environment would jeopardize the tech infrastructure, negatively impacting the education of students.
III-Government Funding
The government allocates funds for the growth and development of online education and online learning. In fact, the government collaborates with the private sector and foreign investors to invite them to investment in the tech education sector. The proactive involvement of the government plays a key role in the growth and development of the online education industry.
Economical Factors Affecting Online Education Industry
Some of the main economic factors in the Online Education Industry PESTLE analysis are as follows;
I-Economic Downturn
The global economy has experienced the worst economic crisis in recent years. It caused the worldwide lockdown and shutdown of businesses and companies, In the midst of economic crisis; it laid the foundation of online education and distance learning. Many educational institutes started offering online classes to students on their laptops, smartphones, and computers via the internet.
II-Education Cost
The cost of education plays a key role in attracting the attention of parents and students for education. It could be in the form of enrollment fees, tuition fees, books, stationary, and dressing, commute, and accommodation expenses. Collectively, when you add up all these expenses, then it becomes a significant amount of capital expense for education.
III-Competitive Market
The education industry has become highly competitive in recent years. There are multiple online and offline educational institutes offering the education and learning services to the students. On the other hand, YouTube offers free tutorials and courses to students and the public. Online Education is comparatively less expensive than other modes of education.
Social Factors Impacting Online Education Industry
Some of the main social factors in the Online Education Industry PESTEL analysis are as follows;
I-Demographic Shift
The Baby Boomer generation has reached the age of retirement and you can’t expect them to learn and participate in online education courses. Millennials and Generation Z are at the peak of their young learning mind and they have the potential and mindset to participate and engage in online educational courses.
II-Tech Literacy
The tech and digital literacy rate has been increasing among the young generation. This is due to the widespread usage of smartphones and digital devices and easy access to the internet. However, the high-tech and digital literacy rate is further amplifying the growth rate of the Online Education Industry. It has become convenient for people to comprehend the concept of online and digital education.
Learning and Changing Career
Modern Human beings are always in the process of learning due to excessive exposure to the media and the digital platform. They have to change careers and switch jobs due to the tight economic environment. Online Educational courses would help them to improve their skills and expertise, and it makes things easier when switching jobs and careers.
Technological Factors Affecting Online Education Industry
Some of the main technological factors in the Online Education Industry PESTEL analysis are as follows;
I-LMS
LMS (Learning Management System) is an educational software and tool for Online Education that many online learning institutes employ. It has the capability to perform various types of daily routine educational operations like assignments, tests, quizzes, and the student learning and evaluation criteria.
II-AR and VR
VR (virtual reality) and AR (augmented reality) are the latest technological advancements that many businesses and educational institutes are employing. It provides a real-life experience to the customers and users; it makes them feel that they’re actually in the classroom, connecting and engaging with other classmates digitally through AR and VR technology.
III-Advanced Technology
Online Educational Institutes are also implementing the latest technologically advanced tools, equipment, and applications. It comprises AI, ML, data analytics, and automation technology; it allows them to simplify the education and learning process and they would show interest in education.
Legal Factors Impacting Online Education Industry
Some of the main legal factors in the Online Education Industry PESTEL analysis are as follows;
Regulatory Compliance
Online Education Industry should comply with the regulations and policies of different countries. It comprises educational courses, skills, and development programs, syllabus details, educational hours, dress codes, learning criteria, and others. Regulatory compliance would help the Online Education Industry to smoothly perform its operations without any disruption.
Environmental Factors Affecting Online Education Industry
Some of the main environmental factors in the Online Education Industry PESTEL analysis are as follows;
Sustainability Initiative
Online Education Industry should make a strong commitment to environmental sustainability initiatives. It comprises investing in renewable sources of energy, recycling electronic waste, biodegradable packaging and stationary material, and others. Environmental sustainability initiatives would help educational institutes to keep up with the growing sustainability trends.
Conclusion: Online Education Industry PESTLE Analysis |PESTEL Analysis of Online Education Industry |External Environmental Analysis of Online Education Industry | Strategic Analysis of Online Education Industry
After an in-depth study of the pestle analysis of Online Education Industry; we have realized that Online Education Industry is the world’s top growing and profiting business. If you are learning about the Online Education Industry PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
