Precena’s Competitive Advantage

We do not worry about competitors, but rather focus on our clients and employees

They say training industry has 500 to 600 billion US$ market according to some statistics. And there are so many training venders in the market because barrier to entry is low. In such industry, we keep increasing our client, hiring employees, and as a result, keep growing with sales amount increase.

But when we looked seriously at our business, we considered seriously. What should we do to compete competitors and survive? We have our vision to structuring and spreading business skills, but what should we aim to realize for near future? What is “competition”, and who is “competitor”?

And our conclusion is that there is no meaning to consider about competition. In different word, we should fight looking at only clients and employees. In the big training industry, we cannot say that training venders do not need to compete each other. Of course, if the client have clear demand what kind of training they want, and compare several venders, we can say we are competing. But it means we cannot make our service contents different from other venders. If service is different from others, clients cannot compare simply. If we understand deeply what the clients need, and we can offer proper services, we do not need to look at competitors in the big industry. That is our answer.

How to fight to avoid competition

They say the training business is basically continuous business and repeat ration of the clients are high. It is 70%~80% for our company case.

And it is rare case to hear the words “competition” in our company. Sometimes clients and other training venders ask us “Which company Precena is compared with usually?” And we have difficulty to answer. Of course, we sometimes have competition for the new clients, but it is really rare case to have competition for us.

Then why we do not face competition? Simply talking, we are offering customized training material for each client with more affordable price than market, with qualified instructors. So once the client start to use our service, there is no reason to change vender.
Also, our contents of materials are structured, and covering most subject of business skills, so if the client start to use our training for one layer of employee, they feel “unstructured” for other vender’s materials and start to consider to use our service for other layers also.
These are the reason why we do not face competition often, we think.

Connect value change with the clients

We are trying to connect value change with the clients. If we offer one day training without deep consideration, we cannot keep connection with the clients. For example, we are offering subjects of thinking skill and MBA structuring total relation of subject for the client’s internal business college, also we are conducting problem solving training as a part of totally PDCA cycle for making mid-range term business plan, offering web learning with gathering training together with assessment for promotion. Thus, we are taking part of client’s internal value chain, and offering wider coverage of service.

It is our pleasure to be a part of client’s value chain, but at the same time, it is a big responsibility for us. Our service is not just a training, and if we do something wrong it would influence on client. We keep offering our service with high quality, which is why our clients keep long relations with us.

Competitiveness we can see from figures

Lastly, let us introduce our competitiveness with some figures.

Financial situation

Since foundation of Precena, we keep increasing our sales amount. We also faced Lehman crash and big earthquake in Japan, we survived changing our strategy. Before 2008, we try to share all our profit to our employees, but after 2008, we are trying to keep certain amount of cash after paying tax. As a result, we have cash and saving that we can service with zero sales amount for a several month.

Client situation

Originally main our business was coming from repeat business of a few clients. But after 2008, we changed our strategy ant tried to expand our client base. As a result, number of client is increasing and reached 117 active clients in 2012. It is including Japanese leading company like TOYOTA etc.

Employee’s situation

We are keeping life time employment policy, but unfortunately 4 employees left our company in 7 years since our foundation. Exactly speaking, 2 more employees left in half year after our foundation, and 1 more left 1 month after join to our company. But we can say 4 employees left after working in Precena for certain period. Many people say average 0.5 people per year is small number considering from scale of Precena, which is why we are touching this figure here.

About a paid vacation, employees can get 10 days from the first year, and increase 2 days per year up to total 20 days. On top, we have 1 week refreshment vacation, birthday vacation etc. In 2012, about 80% of paid vacation was consumed as a total company. We keep making effort to realize 100% in future.

Lastly about salary. There were many discussion if we need to open information of salary, but we decided to open it. Because it is a result of our effort to realize higher level salary with lower service price than market price. Also we need to pay certain level of salary for high spec instructor and other employees for supporting Precena. Most people’s salary is increased after joining Precena, so please come and join us without hesitation.