Group Workshop

Industry data

Contrary to a course or lecture in which audience only listen and are mostly inactive, at a workshop there is active and creative participation of audience. The workshop industry is varied and diverse and pertains to various issues. Due to the large array of workshops, they can be found at various price and quality levels. Workshops may be operated by private, corporate academic or public bodies.

 

Market Characteristics

Competition- in recent years there has been a significant increase of competition in the workshop industry. This is mainly due to the low entry threshold in terms of initial investment and the perceived high revenue. An additional aspect is a significant increase in demand, among other things due to the increase in awareness for the workshop tool (in the public and business sector) and the development of leisure culture (in the private sector).

 

The Industry’s Geographical Characterization -There is a wider variety at large cities than rural areas. Supply, awareness, and accessibility to various workshops is greater at large cities. In smaller cities, however, there is a small selection and most workshop activities concentrate in local cultural center.

 

Lack of Institutionalization- The workshop industry is not regulated. There is usually no supervision over the various workshops offered in the market.

High opening and closure rates- due to existing competition, the branch is characterized by high opening rates alongside high closure rates of businesses that were not able to achieve profitability.

 

Customers: Defining the Target Market and its Size, Market segmenting

The target market can be segmented according to many criteria, although it can roughly be segmented according to private or corporate/ public sectors.

Economic status- customers of medium socio-economic to high status will usually prefer workshops with the purpose of recreation and leisure. Customers from a lower socio economic status, however, will usually prefer workshops for the purpose of acquiring skills or bettering their existing condition with the education acquired at the workshop.

Professional status- businesspersons, unemployed persons, pensioners, position changes, or those leaving a company or business.

 

Marketing resources

Marketing resources for workshops include

  • Advertising- organizations holding workshops on various subjects advertise in local and national media.
  • Personal relationships and reputation- word of mouth, business cards, member club.
  • Home circles or lectures
  • Advertising on the internet. Establishing an internet site and displaying information regarding various workshops.
  • Direct marketing- especially to the corporate and public sector.
  • Sub-contracting workshops.

 

Marketing activities will be influenced by the workshops’ subject and will usually include approaching a relatively focused target market. For example, business workshops will usually be marketed to corporations and executives, while children’s workshops will be marketed to parents of young children.

 

Entry Barriers:

Professional knowledge to be taught at workshop- overcoming this barrier is by using the existing knowledge in the organization, or by purchasing knowledge, meaning using sub-contractors.

Reputation-the main barrier in the industry is reputation, which constitutes a very significant factor in the customer’s decision whether to sign up for the workshop. Creating a reputation may take a long time and requires a high level of professionalism in workshops.

Initial investment-the initial investment is relatively low in comparison to other industries.

Equipment- there is usually no need for any permanent equipment. Equipment for a lecture may be rented or may be included when renting a classroom for the workshop.

 

Risk Level:

As the initial investment is not high, the industry’s exit barriers are low, and therefore the risk of running workshops is relatively low.

When establishing a workshop business and operating workshops from a permanent location, risk level increases, as the organization must sign a rental agreement for the space utilized.

 

Profitability

The industry’s profitability ranges between 20%-30%. If the workshop’s organizer is also the lecturer, profitability rates rise to approximately 85%.

 

Costs

Below is the range of prices for basic equipment and services needed for workshops:

 

Item

Price (VAT not included)

Projector

200-500 NIS per meeting

Classroom

Ranging from 30 NIS per hour to 600 for a full day.

Hotel reception hall

30 NIS per person or 50 NIS per person including light refreshments

Lecturer

200-500 NIS per academic hour. Price varies according to lecturer’s level and lecture type.

 

 

Typical Terms of Payment:

Customers:

Payment for a workshop in the private sector is mostly in cash or a number of credit card installments.

When operating workshops for the corporate or public sector, payment terms are negotiated according to a contract.

 

Vendors:

Sub-contractor payment depends on the workshop managers’ bargaining ability and may range between payment in cash to EOM+60.

Payment for classrooms or special equipment required usually carries credit terms of EOM+30 to EOM+60.

 

Licenses and Certifications:

Specialty licenses depend on the workshop’s subject. Usually there are no special licensing requirements for workshops, although particular professional licensing for lecturers may be required when the workshop's subject is medicine, treatment, engineering etc.

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