Sample Essay on PESTEL Analysis of Education Industry

PESTEL Analysis of Education Industry

About PESTEL Analysis of Education Industry

Education industry is going through constant changes and knowledge is becoming more advanced as years pass by. Information technology is offering new forms of interactive education that blossoms every day to a system that offers everyone an opportunity to learn just about anything, anywhere and at any time. Therefore, for stakeholders in the education industry , there is need to assess the environment as discussed in this PESTEL analysis of education industry.

PESTEL analysis for education industry is a tool that helps the management, staff and governors to analyze school environment and the way in which it can affect its future. This is in terms of planning, finance and management decisions. It also helps them to carry out a comprehensive analysis of opportunities and threats for quality operational planning in the educational environment. Below is a PESTEL analysis  of education sector.


  • Many schools are being privatized thus affecting profitability
  • Government initiatives create risks that a school may not be able to deliver the policy as expected or, it can be easily diverted away from local relevant authorities
  • Changes to skills needed from a teacher
  • There are also changes in curriculum especially with short lead times
  • Requirements to be self-financing and self-managing

Economic factors

  • Local or central government funding decisions that affect schools and establishment of funds
  • Closure of a local education industry that can affect fund raising plans
  • Ability of parents to raise finances for extracurricular activities
  • Ability to invest surpluses and savings
  • The need to operate and manage after school clubs
  • The cost of different resources is also relatively high including resources for staff, technology solutions and staff
  • Shortages of international and national market resources or materials
  • Over provision of school locations in the area leading to competition from neighboring institutions
  • The risk of key members of staff moving to new schools


  • Decline in birth rate thus reducing the number of children joining schools
  • Changes in local population causing decrease or increase number of students
  • Demographic changes also affect pupil enrollment
  • Closure of local companies offer employment
  • Risk of inability to attract the right staff
  • Emergence of social networks that can be used to fulfill different educational needs
  • Integration of disabled students and local community
  • Increase in parental power enabling parents to have a say over their children schools
  • Information is easily accessible to students due to availability of internet


There are many changes to educational tools required in modern day. There is also risk of choosing the wrong technology such as open source and windows.  Others include;

  • New computer viruses that can also affect school operations
  • Internet poses disturbing information, illegal images online thus affecting ICT Security measures among others
  • Shift from paper based books to e book readers
  • Risk of computer hardware and software being outdated and lack of enough time for management of IT systems


  • New legislative systems can easily pose noncompliance risks
  • There are many child protection legislation changes
  • School leaving age has been raised and that of joining school has been lowered
  • Change in school opening and closing hours
  • Changes to financing of charity based organizations
  • There are also health and safety legislation


  • A new highway layout near institutions can increase dangers for students
  • Disposal of waste
  • Reduction of green space available for different school activities
  • Changes to local bus routes
  • Using a good amount of paper and photocopier toner to produce printed details

Summary of PESTEL analysis of education industry

From the above PESTEL analysis of education industry, there are many challenges facing the sector. This is largely attributed to the fact that learning takes place every day in education. Knowledge also evolves as time goes by. New technologies require that the sector embraces advancements for quality education.

Therefore, relevant stakeholders need to invest enough money in technology and in construction of quality infrastructure. This will help to ensure that learning takes place smoothly and that students stay knowledgeable for a better future.

For a stable education industry, there is also need to understand external environment effectively, so that the state can create an ideal and modern learning environment for students and teachers. Despite the many challenges, there are many opportunities to explore for quality education.


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