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Monopolistic Competition In Child Care

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Introduction: Child Care Service – What is it?

Child care is an industry that provides quality help to countless mothers and fathers who are in need of qualified, capable providers to take care of their children. Without child care providers, there would be less jobs and many stressed mothers and fathers. Child care is a very impersonal industry, where no existing or past relationships must be made in order to do business, save nannies and at-home care providers. Child care providers help make the transition into childhood education much smoother by teaching the children letters, numbers, and shapes, while giving them proper diet and exercise. Many providers own a franchise; some conduct business from their own homes; very few own an independent …show more content…

This industry is in a monopolistic competition. Most child care centers compete against other child care centers, though they must also compete against nannies and those who conduct their business at home (“Marketing Your Daycare” 2014). Each type of child care has their positives and negatives, which will either attract or repel potential customers. On one hand, child care centers are certified institutions that have an established clientele. Though the business may be well revered, it could still repel a customer due to the fact that the family may not know the owner of the center or its employees. On the other hand, you have nannies and at-home child care providers. These people generally already know the parent or parents of the child and have a significant relationship. Although some are not licensed by the state as official child care providers, they can be more trustworthy than the child care center because of the existing relationship. The downside to hiring a private nanny or child care provider is that it can be much more expensive than just dropping your child off at a center. Child care also has no existing threats. Due to the decline of stay at home mothers and the rise of feminism, which encourages women to work, more and more mothers are happily choosing day care. This trend is what is keeping the child care service industry alive and …show more content…

Daddy Day Care. Comedy, Family, 2003.
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“Child Day Care Business Risk & Challenges.” Small Business - Chron.com. Accessed October 3, 2014. http://smallbusiness.chron.com/child-day-care-business-risk-challenges-39955.html.
“Fact Sheet: Child Care.” Scribd. Accessed October 3, 2014. https://www.scribd.com/doc/103047072/Fact-Sheet-Child-Care.
“Growth In U.S. Day Care Businesses.” Forbes. Accessed October 3, 2014. http://www.forbes.com/sites/sageworks/2014/06/15/heres-the-growth-chart-on-day-care-businesses/.
Lewis, Jane. “A Mother’s Job: The History of Day Care.” The Journal of American History 86, no. 4 (March 2000): 1805–6.
“Marketing Your Daycare: Who Are the Competitors of Your Daycare Business?” Marketing Your Daycare. Accessed October 3, 2014. http://marketingyourdaycare.blogspot.com/2010/11/who-are-competitors-of-your-daycare.html.
SBDCNet. “Day Care 2012,” n.d.

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