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Kaplan Entering Chile - Timothy Raditya Solichin

Kaplan Entering Chile - Timothy Raditya Solichin

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Published by Timothy RS

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Categories:Types, Research
Published by: Timothy RS on Feb 02, 2012
Copyright:Attribution Non-commercial

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05/13/2014

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ENTERING CHILE
Group 8, MW 4 PM
Kevin SongDavid ShuKayla WolonskyTimothy SolichinMalea MalikStephanie Tong
 
 
 Table of Contents
EXECUTIVE BRIEF
3
CHILE COUNTRY ANALYSIS
4
CHILE MARKET ANALYSIS
8
COMPANY OVERVIEW
11
ENTRY STRATEGY
14
RECOMMENDATIONS
17
APPENDIX
19
 
 
Executive Brief 
As a global leader in English Language training, it is imperative that Kaplan have a strongpresence in Latin America. We believe that South America has the highest potential forgrowth and revenue based on Kaplan’s Core Competencies. Due to the Chilean culturalemphasis on strong education and low barriers to entry, and due to Kaplan’s software-based teaching system, Kaplan should enter Chile as a wholly-owned, greenfieldorganization.
 Why Latin America?
Certain nations within South America have significant economic growth as well asgovernment stability. These key factors will allow Kaplan to penetrate the market with itsexperience in Brazil, Columbia, Panama, and Venezuela. We believe that the next LatinAmerican country Kaplan should enter is Chile. Because Kaplan already has experiencein South America, it can bring the knowledge it has from those markets to Chile, to workto their best advantage. Many Latin American markets are similar in many aspects, sothe things that work in those markets will work in Chile, giving Kaplan an advantage overits competitors.
 Why Chile?
Chilean education expenditures have increased considerably in the last 5 years, nearlydoubling from 2001 education expenses. The country has a relatively large middle andupper class, and the population is young, with almost 40% of citizens under the age of25. A 2004 free trade agreement between the United States and Chile has fed the strongtrade and interaction between the two countries, making English language learningimperative to younger generations.
 The Strategy 
While Kaplan will enter Chile as a wholly-owned institution, Kaplan will be partnering withlocal universities for classroom space and other tangible items, as it has done in othercountries. While in Chile, Kaplan will offer ESL programs two different ways: In-classsessions with a licensed professional, and online as a form of independent study.
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