Chapter 3

The Company and its External Environment

Profile of the Competitor/s

LEIAAI does not have any competitors around La Union. The nearest

competitor for LEIAAI is the WCC Aeronautical College which is located at

Binalonan, Pangasinan. The researchers, unfortunately, were not able to acquire

necessary information from WCC due to strict confidentiality reasons. The last

resort that the researchers are able to do was to look through WCC’s website to

gather necessary information needed to comply with this chapter.

WCC Binalonan was founded later than LEIAAI, it was established by the

year 2008, and served as the nesting ground of their aircraft and crew. They then

operated privately and were able to master every aspect of flight operations.

Binalonan Airfield offers flight services to business individual, and flight training

patrons featuring an 850 meter north-south run way capable of handling general

aviation and mid-sized commercial aircraft. They also manage airport operations,

including flight plans, aircraft maintenance, catering, fuelling, and shuttle service.

Aero Tech Colleges also founded on the same year, offering one diploma

program and five degree programs. BS Aviation (commercial Flying and Aviation

management), BS Tourism, and BS Aeronautical Engineering are offered in

Bilanonan Campus while BS Aircraft Maintenance Technology and Diploma in

Aircraft Maintenance Technology are offered in both Binalonan and Caloocan

Campuses (WCC Aviation Company,2016).

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 Competitor Analysis Table

Competitor analysis table summarizes the main similarities and

differences between you and your competitors (Hiam, 2018).

Leading Edge International Aviation Academy Inc. is under the education

industry/business. Within Region 1, there is only one school considered as the

competitor of LEIAAI, and this school is WCC Aeronautical & Technological

College in Binalonan, Pangasinan.

Table 1shows theCompetitor AnalysisTable (CAT).

Profile of the Industry

The educational services industry is composed of establishments that

provide instruction and training on a wide variety subject (Dalavagas, 2018).

Philippine education industry has showcased a significant growth in the past

decade owing the adaption of the enhanced basic education model.

In the Philippines, one of the most unpopular courses or in the field of

education is aviation education due to the fact that it is expensive. This field

requires a lot of money. But despite of the expensive part of the aviation

education, it is an exciting course/career. When a graduate of this field enters the

real world of aviation, they earn an above-average of income. Traditionally,

military pilots often place first in the employment contest because they are

college educated, which means they have proven themselves in an academic

environment. Their employers are sure that they will do well in the challenging

training environment that is an on-going part of any professional’s career.

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2
 Table 1
Competitor Analysis Table

Competitor/s Pricing Place Product Promotion

●They offer five

bachelor degree
WCC Aeronautical & ●Tuition fees are more ●Located near the courses and one ●Word of mouth,
Technological College expensive than NFA Binalonan and is diploma program: brochures, flyers,
LEIAAI. also located between 2 -BS Aviation Major in social networking site,
resorts. Commercial Flying outdoor activities and
● The price varies -BS Aviation Major in career exposure are
from the raw materials. Airline Operation their advertising tools
Management being used.
-BS Tourism
- BS Aeronautical
Engineering
- BS Aircraft
Maintenance
Technology
- Diploma in Aircraft
Maintenance
Technology

Source: WCC Aeronautical & Technological College

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 Industry Seasonality

LEIAAI is at its peak during the enrolment which occurs during the month of June

and March for some schools who do not start their school year in the month of August,

where the enrolment also happens.

According to Mr. Jayme Torrato, Head of AMTTC Technical Subject, the number

of students enrolled at LEIAAI increases every school year. With the help of students

who graduated from the school, aspiring pilots from all over the Philippines are given

awareness as to what LEIAAI is about and what they offer. This is a huge help for

LEIAAI to gain more students and faculty members. LEIAAI does not only acquire

Filipino students, sometimes there are also international students enrolling at LEIAAI.

During the Immersion, the researchers were able to know the number of students who

were currently enrolled in different courses. There are 72 students currently enrolled in

flying school and 68 students under the AMT department.

Entry and Exit Barriers

The entry barriers of school business especially aviation school is high and costly

because a lot of things should be considered. The first one is the capital or financial

capability of a company. This is a common problem that most companies encounter

because no matter how interesting your ideas are for your company, you really need a

certain amount of money as your capital. The second one is a large space or location for

school ground is also considered as an expensive one. The third one is the permits and

certifications needed for the school to operate and offer their services. Lastly, choosing

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the right individuals for the company. Those individuals should be licensed and

experienced in the field of aviation.

The exit barriers of aviation education are high because when the school decides

to leave the market, the business needs huge exit cost and the left equipment will not be

sold easily because it is expensive one like the planes used by the students for their

trainings.

According to the Head of Training, Mr.Arnel F. Borres, the flying and aircraft

technician courses are offered with resources that are already provided by the

establishment itself. Benefits are given by the location that LEIAAI chose which is at the

Poro Point Freeport Zone. This location is inclusive of a runway and a huge space for

aircrafts to operate. The place where the planes are kept if not used is also expanded

into two, before they only had one. Aircrafts or planes are also increasing due to LEIAAI

financial capacity; they are able to purchasesecond hand planes to accommodate

student needs. It is also confirmed that there are instances that students are faced with

financial problems which leads them to stop the course that they chose at LEIAAI.

Despite the issues of students who stopped studying in LEIAAI, it did not leave a huge

negative impact at LEIAAI because the number of enrolees is still increasing and the

aircrafts are always at use.

Other External Forces

Socio-Cultural Forces

Still amongst the better-paid and more attractive jobs going in popular imagery,

the profession of a pilot has a special mystique attached to it. The combination of skills

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required and the fact that every major city in the world has an airport means that jobs for

airlines and airports are accessible to those looking to pursue their career in aviation.

However, one negative factor that affects the aviation industry is that it costs too much.

The heavy expense that comes with training to become a pilot is only partial compared

to the expenses of the career in total. Furthermore, when one starts looking at the cost

from an investment point of view, the tuition for aviation school is as sound as it gets

considering how fast one recovers the school expenses once you become a commercial

airline pilot or an aircraft engineer.

The decision to attend an aviation school is a big one. Aviation schools can be

very beneficial when it comes to learning and ultimately getting a job as a pilot or

engineer but they’re costly and many people recommend a back-up plan in case you’re

grounded in the future. If you have the financial resources and/or can get a scholarship

for a school, it becomes a more viable and good option to consider.

Economic Forces

Economic forces are the things that can affect the company like inflation rate and

family income or household income. Inflation rate is a quantitative measure of the rate at

which the average price level of a basket of selected goods and services in an economy

increases over a period of time. (Seth, 2018). If this things or factors will change, it will

affect the decisions of people to put up their own business or to change their mind to

avail services and products. LEIAAI is a school that people are aware of but some

people are not, this is one of their biggest downfalls. But thanks to the society’s

technological advancements, information about LEIAAI is easily spread when it is one of

the most helpful ways for the school to gain more students. Slowly becoming a trend,

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LEIAAI will soon be appointed as one of the most successful and famous aviation

schools around the Philippines, the world even.

According to Mrs. Georshiel V. Ballano, there are people who are still not aware

of LEIAAI due to its location, which is not the usual place where passengers pass, and

its activeness with different inter-college and government programs. But they are

already working on it and there are still a lot of ways where LEIAAI is being shared for

awareness and those are shown at LEIAAI’s marketing strategies.

Technological Forces

The technological force that improves the profitability and efficiency of the

growing industry is the technological advancement such as advance aircraft engine

technology which is energy efficient, reliable and safe. The second one is the IT

solutions which reduce the need for manual labour and provides better productivity,

speed work and accuracy. It also lessens the health hazards for workers. The last one is

mobile technology, this helps in communicating with people around the world, and it has

brought people together. The employees and students can easily go online with the help

of the mobile technology and reach across different countries of the world. These

advancements influence the aviation industry and improve its existence.

Political Forces

The political environment also can be promoting positive opportunities through

fiscal and monetary policy, enforcement of laws and the education of the populace

(Smith et. al, 1998).

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 Obtaining a permit to operate can be a complicated one because there are a lot

of permits and requirements to submit. To those aspiring people who want to establish

their business, they should bear with the municipality’s ordinances and regulations.

Business should comply to be able with them to operate the business. The permits or

requirement that LEIAAI have are shown at Appendix B.

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