| STRATEGIC ANALYSIS |
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| What are the changes we will see on the training market? |
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2009 will represent a turning point for the training market, taking into consideration the needs and demands of client companies, the remaining suppliers, possible new challengers and new solutions coming in to replace the old ones. What are the potential changes that might take place on the training market?
Smaller budgets and better educated clients, more selective and calculated, will more than likely generate new trends and changes on our market. A market that we believe is going to increase in the next 2-3 years, from 5-6 million euro in 2010 to an approximate value of 10-12 million euro in 2012 for programs aimed at leadership/management, "self management", "interpersonal skills", "commercial skills", teambuilding - without taking into consideration budgets that come from sources such as European funds.
1. Different needs of client companies:
During this whole year we haven't had a single meeting with potential clients where the only subject we discussed was the opportunity of a training program. All meetings were about the educational processes we offered (not training sessions) and how they can increase the performance of participants. The coherence of our actions, the way they linked with our participants' individual objectives as well as those of the company, assistance when it comes to implementation and how our programs go along with the organization's strategic priorities - these are now pragmatic criteria on which clients select the most valuable training program for their needs. When an educational program fails to show how it can efficiently support objectives there is no chance of purchase and implementation.
2. Competitive advantages of the remaining suppliers:
Even though they were important up till now, these factors will play a significant role in any decision making process: |
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Company brand |
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The quality and seniority of trainers and facilitators |
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The expertise, creativity and courage of the consultants in charge of designing the mechanics of the entire process |
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The capacity of the training company's business model of providing increased value for reasonable prices |
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The morale and engagement of support teams, as well as management's capacity to capitalize on the moment in order to innovate and offer more efficient solutions that act as a catalyst when it comes to implementing the abilities that have been taught during the sessions |
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The medium tariff that I think most top companies will work with between 2009-2010, will be around 1650 Euro per day plus VAT, for a group of 14-16 participants.
2009 is also a year where the number of freelance trainers has increased: some have a very high expertise, others not so much. Those who are good will have a choice whether to keep their status as freelancers or collaborate with training companies for high scale programs. Both of these options have benefits and disadvantages.
3. Could new challengers appear on the training market?
If I were to start a training company in Romania (but it's definitely not the case!), this would a great year to do so - similar to the end of the 90's and beginning of 2000: investments wouldn't be that high, there are a lot of resources on the market and I would have a 2 year plan in order to educate the market regarding the relevance of the services I offer, and in my third year, at the latest, I would make the jump to the big league (I hope that very few people follow my advice!).
Entrepreneurial energy, dedication and confidence, your personal brand and a few "quick and resounding victories" could transform a newly founded company or one that has recently entered the Romanian market, in a sustainable success in about 3-4 years! However I haven't heard of such intentions, initiatives or plans.
I foresee a decrease in the number as well as intensity of the rivalry between competitors - and an increase in effort in terms of clarifying your position: some will be known as "sales specialists", others will be regarded as experts in "leadership development". 2009-2010 will be a period in which top companies will try to be recognized as exceeding expectations in at least one field.
4. New solutions coming in to replace old ones?
For almost ten years a few of the programs present on the market earned a royal place in terms of customer preference. However the consumer decision making process has gone through some transformations: some "sales" and "customer service" programs are out of date and have already been replaced with newer ones, belonging to new suppliers. Nobody knows what the new trend is going to be in 2010 in terms of teambuilding needs, when budgets for this sort of activity will be put in place - but I am sure there will be a lot of changes. There are a few approaches and "leadership & development" programs that have fought for first place in the past years - the end of 2010 will reveal which of them has earned first place.
If I were to be happy of something in this difficult period is the fact that I am witnessing true change, I have a front seat in order to observe the evolution of suppliers and I can learn that all these changes, good or bad, are part of life.
Viorel Panaite
Partner |
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Human Invest is a Premier League company in the arena of training and organizational development consultancy services, present on the Romanian market since 1998.
We are recognized for conceiving and implementing programs which offer managers an authentic experience towards improving their leadership performances, and thus we support companies in becoming more and more engaged in delivering excellent services for their clients.
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