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TURNING OUR BACK ON OUR COMPETITORS

TURNING OUR BACK ON OUR COMPETITORS. seven basic principles upon which to base the IH differentiation. Frédéric Borne. ih ciudad universitaria ih las rozas ih sagasta. ih alonso martínez ih nuevos ministerios ih diego de león. Who said this?.

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TURNING OUR BACK ON OUR COMPETITORS

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  1. TURNING OUR BACK ON OUR COMPETITORS seven basic principles upon whichto base the IH differentiation Frédéric Borne ih ciudad universitaria ih las rozas ihsagasta ih alonso martínez ih nuevos ministerios ih diego de león

  2. Who said this? “Theworst error in strategyisto compete withrivals in thesamedimensions. Don’t compete to be the best. Compete to be unique.”

  3. Napoléon Bonaparte? Nicolo Machiavelli? John Haycraft? Sun Tze? Baruch Spinoza? Alan Pentecost? Lee Iacoca? … ?

  4. OUR LOCAL MARKET CONDITIONS: • Twodecadesoffastgrowthhavesuddenlygiven place todeeprecession • Governmentspendingisfrozen • Tax presureisparalizingtheeconomicagents • Bankcreditis non-existent • Bankruptciesfilltheheadlines • Unemploymentisspreadinglike a medieval plague • Studentandfamily salaries are falling • Dispendableincomeisshrinking • Consumptionisalmostcompletelyhalted • Companies are focusingonredundancies, notoninternal training • Theonlythingthatseemstowork, in thepublic’sviewis “bilingualeducation” (state, semi-publicandprivate: 500 schoolsandgrowing) • There are still 700 directlycompetingEnglishacademies in Madrid • Plus unemployedEnglishteacherswho compete offeringonetooneclasses at 12 € (comparedto 50 € at ih) onsitckersfoundonthestreet

  5. WHAT MOST COMPETITORS ARE DOING, guided by intuitive logic: • Droppingtheirprices • Launchingfabulousoffers • Saying YES towhatevertheirclientsaskthem • Squeezingtheircosts • Reducingtheiradvertisinginvestments • Workingonalternative, cheapproductstosatisfytheir “poorer” customers • …

  6. Meanwhile, WHAT ARE WE DOING? • Turning our back on them and reinforcing our specificity. • Basing our differentiation on seven basic principles… • … and working to ensure that they are: • correctly understood, shared and integrated by every employee • effectively imbedded in all our external communication • adequately perceived by each client.

  7. FIRST PRINCIPLE: • Remain faithful to our BRICKS AND MORTAR language school identity. • As much importance given to the “school” as to the teacher and the classroom • New art exhibition spaces in the schools • Open-door events to attract new visitors • All staff wearing ID cards with name and photo • Etc.

  8. SECOND PRINCIPLE: • Glorify the teacher’s presence with the students in a centrally located, easy to reach, IMPRESSIVE, MODERN and COMFORTABLE school. • “The Language Learning Experience” as opposed to “Quality Language Teaching” • All schools named after their metro station • ih logos on the official metro map • Etc.

  9. THIRD PRINCIPLE: • Be sure to attract, train and keep up to the task the most ADAPTABLE and CAPABLE professional teachers available on the market. • Unprecedented improvement in economic packages, in times of unprecedented crisis • More precise and ambitious definition of recruitment criteria • Clearer opportunities for internal professional development • Publication of the bios of some of our teachers, trainers, examiners and textbook writers

  10. FOURTH PRINCIPLE: • Emphasize and publicize the social element in our “Language Learning Experience”, while the physical human presence of teacher & student in the same room is becoming a LUXURY. • Recording more social, cultural and academic events that take place in the schools • Incentives for the teachers who socialize with students after school to take photos and write about it • Publication of short teachers & students interviews • Etc.

  11. FIFTH PRINCIPLE: • Make a careful, well thought-of, use of technology, as nothing more than another teaching TOOL to be used in class and/or after class, never placed at the centre of the learning experience. • New internal training programs and team of “IT academic managers” • Salary linked to the completion of annual training tracks, including technology training • Opportunities for lesson-plan sharing • Etc.

  12. SIXTH PRINCIPLE: • Offer the most PERCEIVABLE quality, as it suits to the most expensive solution to language learning needs. • All staff asked to look at the premises with new eyes each day, to immediately signal the tiniest imperfection • All staff asked to permanently think of anything that can be improved • Internal teacher training sessions on practical subjects such as decibels, classroom temperature, light, etc. • Project to display each room’s temperature, humidity and quality of air on a digital screen at each reception

  13. SEVENTH PRINCIPLE: • Show with tangible data that our approach is the one that delivers the best RESULTS in terms of effective learning. • Systematic publication of exam results and comparison between students and non-students, in each segment and at each level • Level accreditation available for all, not only students, at a small price • Etc.

  14. If it works in crisis-hit 2013 Spain, then it can work in every country, in every city and in every phase of the economic cycle… The key is to always fight on “our” ground, not on “their” ground!

  15. “Theworst error in strategyisto compete withrivals in thesamedimensions. Don’t compete to be the best. Compete to be unique.” As an IH school we have less choice than that: we must be unique AND the best!

  16. Written in 1980, CompetitiveStrategy, has formedthe basis ofmodernstrategicthinkingforthreedecades. Thebookisnow in its 60th editionand has beentranslatedinto 19 languages. Itisstill a greatbooktoreadthoughtherecentbankruptcyof Michael Porter’scompany, Monitor Group, has someonetarnisedtheimageofthemanagementguru. 

  17. Our SUPPLIERS (Ts) can’t dictate their conditions to us because: We set the standards oftheIndustry Wehavethemeanstosubstitutethem (HR) We MAKE them! (TT)

  18. We discourage dangerous NEW ENTRANTS with: Huge capital requirement (premises, publicity, academic staff…) Learning curve Economiesofscale

  19. We resist the threat of SUBSTITUTES by: Stickingto a customersegmentforwhichsubstituteshave a poor performance Asking a muchhigherpricebecausesubstituteshave a lowervalue NOT sellingsubstitutes!

  20. BUYERS can’t dominate us because: A strong Brand Identityallows a “takeitorleaveit” position (as long as wecontinuetooffer superior value) There are manypotentialcustomerswaitingto be picked The “topsegment” has a lowprice-sensitivity

  21. We can beat the COMPETITORS if: Theyremainatomized Weoccupythe best places withthe best premises Wemaintainthe QUALITY difference (alwaysbeingonelapahead)

  22. International House is NECESSARILY the winner, because…

  23. Wherewemust be, theycannotfollowus. ih ciudad universitaria ih las rozas ihsagasta ih alonso martínez ih nuevos ministerios ih diego de león

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