Outwardly, schools may claim they don’t compete with one another, striving for a higher purpose of education. However, behind the scenes, the competitive landscape is alive and well, as it should be.

Understanding who your competitors are, how they operate, and what sets your school apart is critical for survival. Thriving, well, that’s another thing entirely.

There’s an ugly stigma attached to competition.

It’s a word that conjures a visceral reaction in some people. We like winning but hate losing. We want to improve but don’t like being compared against other’s benchmarks.  

Yet, society holds competition in high regard. We’re told it delivers cheaper prices, more innovative products and services, and improved safety. And what parent doesn’t want this?

You may not like the concept, but the pious high road can be quiet and empty when enrolments head elsewhere.

In this post, we’ll break down the often-overlooked dynamics of school competition and how you can leverage this knowledge to your advantage.

Buckle up. This post should challenge some deep-seated myths that schools embrace.

Understanding the Need for Competitor Analysis

The first step in tackling your competition is recognising that it exists. Even when you’re not actively looking over your shoulder, others are. Schools often operate in a silent rivalry.

If you’re convinced that your competitors have little to no effect on your school, you may be deluding yourself. While they remain functioning within a limited enrolment pool, they effectively must compete.

Staying ahead of the game demands you acknowledge your competitors and seek ways to differentiate your offerings. A competitor analysis is highly recommended to achieve that.

Undertaking a competitor analysis means dissecting your position within the market by analysing what others are doing well—and perhaps more importantly, what they’re missing. This goes beyond merely observing who’s stealing your prospective students; it’s about comprehending their strategy, strengths, and potential weaknesses.

Seth Godin's positioning grid is an excellent tool for helping you with this analysis. 

This analysis is not a set-and-forget tool. If you’re serious about keeping tabs on your competitors, then it’s a task you should probably consider completing on an annual or biennial basis.

Identifying Your Competition: Who’s in the Game?

Identifying your competitors requires looking beyond your prominent neighbouring schools. Start by asking:

• Who offers similar academic programs or extracurriculars?
• Are there schools known for excelling in particular areas, like STEM or the arts?
• What about private versus public schools? Is there a local public school with an excellent reputation?
• Are students opting for online education platforms instead of traditional pathways?
• Are there any new or expanding schools in your area that might shift the competitive landscape?
• How do schools in neighbouring suburbs or regions influence families' decisions in your area?
• Are non-traditional educational programs, like vocational schools or dual-enrolment options, attracting students from more conventional schooling paths?

These questions broaden the scope of your competition. You might discover that your competition isn’t always across the street but across the internet.

Types of Competitors: Knowing Your Rivals

 In any industry, knowing the types of competitors can inform strategy, and the school landscape is no different. There are typically three types of competitors you need to be aware of:

1. Direct Competitors: These schools offer the same year levels, follow a similar curriculum, and are likely vying for the same student demographics. They may be located nearby, making them a more obvious threat.
2. Indirect Competitors: These might include alternative education providers like online schools or homeschooling communities. Their curriculum might differ significantly from yours, but they serve as a viable alternative for certain students.
3. Niche or Specialised Competitors: These schools have carved out a specialised niche, such as schools for the arts, Montessori or Steiner institutions, or those with a strong focus on religious or cultural identity. While they may not compete for every student, they represent significant competition in their specialty areas.

What Factors Make Schools Competitive?

 Competition between schools is a complex matrix involving multiple factors. It’s not just about who leads the academic League tables. Schools compete in various dimensions, such as:

Location: Proximity to families, public transportation, and local amenities play a huge role. Are you easily accessible, or do families have to commute past several other schools to reach you? Location is relative:

Students attending regional and rural schools may be prepared to travel greater distances than students at inner-city schools. If you only consider proximity within your nearby locale, you may miss identifying competitors that seem more obscure.

Price: Tuition costs can be a significant factor for independent schools. Are you pricing yourself competitively in your market? Offering scholarships and financial aid options could attract students who might otherwise choose a less expensive option.

We all know that if students are happy and doing well at school, they will unlikely move. Yet, the deepening cost-of-living crisis has seen some parents withdraw their children from premium schools, opting to enrol at a lower-priced tier instead.

Once the financial crisis dissolves, the chances of moving back reduce significantly if the student is now stable and progressing well at their new school.

Facilities: From modern classrooms to cutting-edge athletic fields, facilities matter. Parents are impressed by state-of-the-art science labs and vibrant libraries. Keep an eye on what your competitors are investing in, as this will guide where you might need to improve.

In the School Choice Survey 2021 Report undertaken by Independent Schools Australia, good facilities accounted for 49% of parents recommending their school to others. This means that when Mum and Dad attend your Open Day, at least one carefully considers your facilities and those offered by schools down the road.

Culture: A school’s culture is one of its most defining and competitive attributes. Whether it’s a rigorous academic environment, a focus on inclusivity, or a faith-based mission, your school’s culture makes it unique. Are you promoting that uniqueness effectively?

Faith or Philosophy: Religious identity can separate one institution in faith-based schools. Parents often select schools aligned with their religious or philosophical beliefs, making this a significant factor in competition.

Gender: Some schools cater to specific gender groups, offering co-educational or single-gender environments. Each has advantages; knowing where you fit in this category can highlight your strengths.

It’s also worth considering how your competitors are handling gender diversity.

Leveraging Market Research: Data Is Your Ally

Schools, like businesses, can benefit immensely from market research. Gathering data on your competitors helps you keep track of where they stand and craft your strategies. It would help if you asked:

• What do their enrolment numbers look like?
• Are they introducing new programs or building new facilities?
• How satisfied are their students and families?
• What is the perception of your school compared to your competitors regarding academic rigour and student support?
• Are there emerging trends in education (e.g., sustainability programs, mental health initiatives) that competitors are adopting, and how do these align with your current offerings?
• How do your marketing and admissions efforts compare to your competitors? Are they investing more in digital outreach or community engagement?
• What do alumni and current families say about your school versus competitors regarding long-term student outcomes and success?

Market research doesn’t have to be a complex or expensive endeavour. You can gather much of this information by attending local education events, following their social media accounts, networking with parents, or conversing with local suppliers.

For example, consider launching surveys to understand why families choose your school over others. By tapping into your community for feedback, you can adapt your marketing or admissions strategies to emphasise the qualities families value most.

Actionable Insights: Using Competition to Your Advantage

With a thorough competitor analysis in hand, how do you apply these insights? 

1. Play to Your Strengths: This might sound obvious, but too often, schools get caught up in trying to be something they’re not. Focus on what your school excels at and build your reputation around it. If your music program is exceptional, make sure everyone knows it.  

2. Adapt Where Necessary: If a nearby school is gaining traction because of their excellent sports facilities or tech programs, don’t ignore that. Instead, consider improving similar offerings or creating complementary programs that stand out. 

3. Target Unmet Needs: Part of staying competitive is identifying unmet market needs. Perhaps your community lacks a robust bilingual program or support for students with learning differences. Can you fill that gap? 

4. Engage and Communicate: Regular communication with your school community about your unique offerings is crucial. Highlight achievements, new programs, and improvements. The more you engage with current and prospective families, the less likely they are to look elsewhere. 

Conclusion: Stay Vigilant, Stay Strategic

Competitor analysis isn’t a one-time task. Just as your competitors evolve, so too should your strategy. By continuously evaluating where you stand concerning others, you position your school to compete and lead. 

Echoing the words of Kim and Mauborgne, the only time your school should ignore the competition is when...you have made them irrelevant. Even then, it’s wise to keep a watchful eye on what’s happening around you. 

Understanding the true nature of school competition may challenge deeply held myths.

However, by embracing this reality, school leaders can craft strategies that leverage their unique strengths, identify gaps in the market, and ultimately create an environment where their school survives and thrives.