Starting a tutorial school in Thailand
By Jon Fernquest[Introduction | Vocabulary | Article | Reading Questions | Answers]
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Today's article is on the business of tutorial schools in Thailand.
There's a lot of demand for tutorial schools all over Thailand, but succeeding in this kind of business is still difficult.
What does it take to build a successful tutorial school business?
Reading Questions
Here are some questions to guide your reading (See answers at end):1. What are popular times for students to attend tutorial schools?
2. Why do high school students attend tutorial schools?
3. Why are tutorial schools such a big business in Thailand?
4. What are two typical reasons why tutorial schools do not succeed?
5. What three steps can schools take to ensure their survival and sustainable growth?
6. What percentage of Enconcept's schools are in the provinces?
7. What central provincial cities are important locations for Enconcept schools?
8. What different jobs has Ms Arisara, the managing director fo Enconcept, experienced in her life?
9. How much did Ms. Arisara invest in her first school? Where was it located? Did it grow and make a profit?
10. Why are there good opportunities for tutorial school businesses?
11. What kind of marketing techniques does Enconcept use?
12. What does the government need to do to reform the educational system, according to Ms Arisara?
Bangkok Post Article: October 9, 2006
A passion for teaching
Tutorial schools are big business but staying in business is hard work CHADAMAS CHINMANEEVONGHigh school students straining under heavy backpacks and holding textbooks in their arms on holidays and after classes are a common sight in Bangkok. By the thousands they flock to tutorial schools, seeking the edge in entrance examinations that will get them into a prestigious state university.
Tutorial schools are a very big business in Thailand, due in no small part to the shortcomings of the mainstream educational system. Despite decades of talk about educational reform, there's no sign of the demand for extra classes slowing. But that doesn't mean that starting a tutorial school is a guaranteed ticket to business success, says one operator.
"It's easy to open a tutorial school but it's difficult for them to survive in the long term,'' says Arisara (Kru P'Nan) Tanapakit, the managing director of Enconcept E-Academy Co, a leading English language tutorial school.
She said many tutorial schools failed because they incurred high operating costs and were uncompetitive with rivals. As well, schools that want to survive must update their curricula all the time and differentiate themselves from others.
Enconcept has prospered by assuring that students obtain the benefits they are seeking. It is offering about 50,000 seats this year, up from 30,000 last year, and sees 30% annual growth as realistic.
Having a presence beyond Bangkok, where majority of tutorial schools are located, is one key to sustainable growth. Enconcept plans to open three new branches this year in the provinces, bringing its total to 21 _ only six of which are in Bangkok. The rest in centres such as Khon Kaen, Nakhon Ratchasima, Chiang Mai and Hat Yai.
"We're expanding our business upcountry because currently many provincial students must travel from home and rent apartments [in Bangkok] during holidays or at the end of the semester to take extra courses,'' Ms Arisara explains.
She said it was very touching to see many students travelling 200 to 300 kilometres because they were anxious that they might not be able to contend with students in the capital.
Ms Arisara is a role model of sorts for her students, having obtained a first-class honours degree at age 19 from the Faculty of Arts of Chulalongkorn University in 1995. She went on to obtain an MBA from the university's Sasin Institute in 2000.
"I worked in many careers such as a translator, a marketing executive and a guide, but it was not my way,'' she says of her early career experience.
It was her English teacher in high school who inspired her to excel in the language.
"I wanted to impress him with my ability in the English language. I immediately decided to practise the language with tourists hanging around Khao San Road,'' she recalls.
At the age of 15 - she was already a university freshman - she started her first English tutorial classes, with her teacher's children as her first students. "I earned 100 baht an hour. I was making money and was very proud.''
The turning point arrived when she worked as a part-time tutor and one of her students told her, "You make me love the English language.''
"I felt fulfilled and told to myself that this was my way. I decided to resign from a good and stable job as a marketing executive with Unilever Thailand, to be an English teacher,'' said Ms Arisara.
She invested 600,000 baht in the first tutorial school in the Saphan Khwai area. The business did not generate a profit at first though its size grew rapidly, from a class with just seven seats to more than 1,000 seats within three years.
The outlook for the business is good, due partly to the growing popularity of international school programmes. As more employers, both local and Thailand-based multinationals, seek applicants with English skills, young people want to stand out in the job market.
Ms Arisara believes the keys to success in the tutorial-school business are course content and method of instruction, as well as location. Enconcept is well-known through word-of-mouth, and it focuses on event marketing to build direct relationships between tutors and students.
As for the mainstream educational system, Ms Arisara says the government could help the reform process by offering better pay to teachers. Otherwise, the system will not be able to attract talent and school quality will only get worse. "It will be a big problem if children have to study with unprofessional instructors.''
Despite working seven days a week, Ms Arisara loves her job because it helps her make a contribution to human development. "I'm a teacher and will be a teacher for my whole life. Work with heart and enjoy it like me,'' she says with a smile.
Vocabulary
a passion for y - like doing y and very interested in y
straining under - having difficulties dealing with provlem
flock to - large numbers of people come to
seeking the edge in - trying to find some idea that will allow you to succeed in business
prestigious - respected and admired by people
shortcomings - weaknesses, faults
educational reform - changing education to improve it
a ticket to success - a way to achieve success
incurred costs - the effect that costs have, on the profit and loss statement
operating costs - The day-to-day expenses incurred in running a business, such as sales and administration, as opposed to production.
curricula - what is taught in a school
differentiate - product differentiation, making your company's product different so people will buy it, not the competitor's product (See Wikipedia on product differentiation)
touching - causes an emotional response such as sympathy or sadness
a role model - a person like a teacher that a young person admires and wants to be like in the future
impress - look up to
Unilever - a large conglomerate that produces many common household products (See Wikipedia)
word-of-mouth - word of mouth advertising, people telling their friends and family about products that they like
event marketing - sponsoring an event like the Olympics, a rock concert, or a festival, then using good opportunities during the event to promote your product with advertisements
reform - make changes to improve
Answer Key:
1. What are popular times for students to attend tutorial schools?
a. On holidays.
b. After classes.
2. Why do high school students attend tutorial schools?
They want to get good scores on college entrance examinations to help them get into prestigious state universities like Chulalongkorn, Thammasat, and Chiang Mai University.
3. Why are tutorial schools such a big business in Thailand?
They make up for the shortcomings of the mainstream educational system.
4. What are two typical reasons why tutorial schools do not succeed?
a. Schools incur high operating costs.
b. Schools are uncompetitive with rivals.
5. What three steps can schools take to ensure their survival and sustainable growth?
a. Continually update their curricula.
b. Differentiate their school from other schools.
c. Opening schools outside of Bangkok in the provinces.
6. What percentage of Enconcept's schools are in the provinces?
71% [= (21 - 6)/21]
7. What central provincial cities are important locations for Enconcept schools?
Khon Kaen, Nakhon Ratchasima, Chiang Mai and Hat Yai.
8. What different jobs has Ms Arisara, the managing director fo Enconcept, experienced in her life?
She has worked as a translator, a marketing executive, a tourist guide,
and an English teacher.
9. How much did Ms. Arisara invest in her first school? Where was it located? Did it grow and make a profit?
She invested 600,000 in her first school which was located in the Saphan Khwai district. It grew rapidly but was not profitable.
10. Why are there good opportunities for tutorial school businesses?
a. International school programmes are increasingly popular.
b. More people need English skills in the job market.
11. What kind of marketing techniques does Enconcept use?
Word of mouth advertising and event marketing.
12. What does the government need to do to reform the educational system, according to Ms Arisara?
Better pay has to be offered teachers to attract talent to the teaching professions, otherwise "school quality will only get worse."
