Table of contentsPestelPolicyEconomicSocialLegalKey factorsConclusionAnalysis of the industrial environmentBargaining power of suppliers (low)Bargaining power of buyers (low)Threat of competitors (high)Threat of substitution (moderate) )G8 Education Limited, founded in 2006, is a provider of early childhood care and education services and facilities in Australia and Singapore. The company is a shareholder-owned, for-profit organization and is the largest AXS-listed childcare operator in Australia. Through acquisitions, it has various brands under its umbrella. G8 Education has 495 centers in Australia, with almost 80% in Queensland, New South Wales and Victoria and 21 in Singapore; compared to market leader Goodstart Early Learning, which has 649 centers across Australia. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayThe company has a total of 9,927 employees. According to its 2017 annual report, it has a total revenue of $796.8 million and a market share of 6.8%, making it the second largest player in the sector, behind Goodstart Early Learning, 7.9 %. G8 Education differentiates itself by recognizing community demands and investing in educational resources, including skilled educators and caregivers.PestelPolicyIn 2016-2017, public spending on early childhood education more than doubled compared to ten years ago. In July 2018, a new subsidy, targeting low to middle income families, varying by income level, hours worked and type of childcare used, was introduced. This subsidy, budgeted at $23.2 billion by the government, will be paid directly to childcare service operators. Additionally, a $1.2 billion child care safety net was put in place to help families most in need. Childcare operators with children with additional needs receive additional financial assistance under the Inclusion Support Program. This initiative is an opportunity that industry players can capitalize on.EconomicRecently, the labor force participation rate has increased sharply and the unemployment rate is expected to fall to 5.25% as GDP increases. Since 2016, the participation rate has increased by 1.1% to 65.5%, driven by higher participation of women (RBA, 2018). Additionally, from 2016 to 2017, the average regular weekly wage of full-time adults increased by 2.3% to $1,567.90 and the average weekly total income of full-time adults increased by 2.2%. b to reach $1,628.10 (ABS, 2018). The social birth rate increased by 1.41. % from 304,100 in 2016 to 308,500 in 2017. The introduction of the baby bonus and government subsidies have helped increase birth rates, which provides opportunities for markets. There was a 4.2% increase in marriages in 2016 (118,401) compared to 2015 (113,595). Despite this, there is a worrying trend of increasing median age at first marriage for both sexes. Compared to 2015, in 2016 the median age increased by 0.2 years, reaching 30.3 years for men and 28.7 years for women. This is a threat because it would be more difficult for a woman to conceive at a later age, as her fertility begins to decline at age 32. Additionally, pregnancy complications and miscarriages are more common in women over 35. These factors can dissuade mothers from conceiving, which would have a negative impact on the rate ofbirth rate. With fewer births, this implies that there would be a smaller pool of buyers to tap into. Female and mother labor force participation rates have increased over the past decade and are expected to increase further (RBA, 2018). As the number of mothers increases, this trend presents an opportunity for the child care industry. salary. Unpaid leave to care for children's health and full-pay leave to spend time with their children and support their educational, social and emotional development are also given. Paid maternity leave not only improves women's health, but also ensures that they are not excluded from work or income while having children. With these incentives, more people would be willing to have more children, making it an opportunity for the child care industry. In 2013, reforms to improve quality involving stricter standards, new grading systems, the Early Years Learning Framework and strategies to grow the early years workforce were put in place. As regulations and requirements become more stringent, this can pose a threat to the industry. Key Factors As illustrated, the main drivers of change for the child care sector are social, political and legal factors. Rising birth rates, government subsidies and the Paid Parental Leave Act are opportunities that market players can exploit. Factors hindering the growth of the industry are the stricter regulations governing the industry and the increasing age of marriage. Factors such as technology and environment do not greatly affect the industry. Conclusion Overall, the industry is growing and the opportunities to exploit outweigh the threats. That being said, the G8 Education should capitalize on the opportunities, but the threats should not be overlooked or overlooked. Industry Environment Analysis The purpose of this analysis is to forecast the attractiveness and profitability of the Australian childcare sector as a whole. 3.1 Threats of New Entries (Low) Although the industry is not saturated, there are several obstacles for new entrants. According to Australia's Childrens Education and Care Quality Authority, there are many increasingly strict guidelines that a care provider must follow. Market penetration costs are also relatively high, as the cost of center accommodation, teacher salaries, facilities and equipment can deter new entrants. In addition, the largest players are better able to attract qualified staff and have a better staff composition, particularly specialized staff, which would constitute a differentiating factor for the operator. This would have a disincentive effect on new entrants to the market. Thus, the barriers to entry into the industry are high and the threat of new entrants is low. Bargaining power of suppliers (low) To support the operations of the child care provider, supply chain management is essential. Thus, powerful suppliers can have a negative impact on profitability. According to Job Outlook (2017), a government initiative, the number of people caring for children in Australia has increased significantly and is expected to continue to grow. There are 142,200 carers in the sector in 2017. With an abundant supply of carers, the bargaining power of suppliers is reduced as there would be a large pool of carers..