For ProfNoel
Jacques Asunta
template_ppt.ppt
Notes:
Page Title
*
- Introduction
- Synopsis/Background
- Key Issues/SWOT
- Define the problem
- Alternative Solutions
- Selected Solution
- Implementation
- Recommendation
- Conclusion
Notes:
Case Study Agenda
- Introduction
- Synopsis/Background
- Key Issues/SWOT
- Define the problem
- Alternative Solutions
- Selected Solution
- Implementation
- Recommendation
- Conclusion
*
- Apollo Group, the company that owns the University of Phoenix (UOP), is one the top-earners by revenue private companies in the United States.
- The company was established in the year 1973, with a main aim of providing college and post-graduate programs to working class people.
- While most of the universities were solely non-profit oriented institutions, UOP was different in that it was established with an aim of making profit. This creates a lot of resistance after it was established.
- In order to realize this outstanding transformation, UOP chose to focus on the adult’s who were interested in pursuing college and post-graduate studies. While this worked perfectly to make UOP a market leader in this industry, increasing competition and a changing world of technology have become critical areas of concern.
- As such, adopting a system that helped establish a better competitive advantage was worthwhile in an attempt to remain relevant in the field.
Notes:
Introduction
Apollo Group was established in the year 1973. Upon its establishment, it started University of Phoenix. This private university was different from other universities in that it was a profit-oriented institution. Many people criticized it and the grounds on which it was established, but strategic planning and adopting an approach focus that mainly targeted the neglected working class people interested in pursuing degree programs helped transform UOP into a present day top-earner private university that offers quality programs that add value to its students (Pearce & Robinson2013).
*
- For the first ten years, the company failed to earn any significant revenue because many people showed resistance to the outcast of a profit a profit oriented university. During this time, it was sarcastically referred to as the “Diploma Mill”.
- With the changing trends over the years, UOP evolved to be a favorite choice for adults. This led to a marked increase of the companies Initial Public Offer (IPO) value from $0.76 in the 1980’s to a mid-2005 high of $98.
- UOP also re-organized itself through effective use of cost leadership, differentiation and speed-based strategy, as evidenced by the strategies presented herein.
- Most importantly, UOP was able to lower the price and rebrand it’s service to meet the specific needs of working adults seeking to pursue degree programs
Notes:
Synopsis
For the first ten years, UOP did not fair well in the market to the resistance that was in the market, and it was often referred to as the “Diploma Mill” (Pearce & Robinson2013). However, changing trends in education systems and a higher preference of online modes of learning made a UOP a choice a better choice for the target group, which led to a gradual increase in enrollments rates. The company’s earnings also escalated to hit a high of $98 of its shares in the IPO, thanks to the effective use of cost leadership, differentiation and speed-based strategies in its market focus approach (Pearce & Robinson2013). Most importantly, UOP was able to lower the price and rebrand it’s service to meet the specific needs of working adults seeking to pursue degree programs
*
- The key issues that have been critical in UOP’s service delivery are time convenience, level of technological sophistication and increasing the number of candidates who genuinely succeed in their programs
- These three factors represent a speed-time strategy and product differentiation mechanism, well complemented by a low cost strategy derived by UOP’s economies and scale and market leadership position.
- This goes in line with Porters postulation that while the three approach focus strategies are key elements in marketing strategies, market leadership position helps a firm combine the three approaches in the derivation of sustainable competitive strategies.
Notes:
Key Issues
The key issues that have been critical in UOP’s service delivery are time convenience, level of technological sophistication and increasing the number of candidates who genuinely succeed in their programs. They represent a focus approach that aims at deriving a competitive advantage through cost leadership, differentiation and speed-time strategies. As porter (1998) noted, a market leader can easily combine these three focus approach strategies to derive a strong competitive advantage.
*
| Strengths Low tuition fee averaging at only $18,000 per year; a figure much lower than typical private college tuition fee Low operating costs since online classes require less resources A service that identifies well with the educational needs of adults seeking to advance their studies or pursue degree programs at the comfort of their homes Better professor-to-student service to the small-size class system used by UOP | Weaknesses - Currently, the graduation rate averages at 65%, which means that there is still more room for improvement The degree programs are limited in number, with only 15 degree programs available Online classes are not as good as physical class systems |
| Opportunities There are 70 million who feel that pursing a degree in line with their profession would increase their competitiveness in the job market Many adults prefer to study in a college where credit transfer is accepted and working experience considered | Threats The current ant the to-be working adult workers aged above 30 years rely more on technology than the previous target groups in the same age bracket - Competition from other types online universities - A trend in the job market that favours grandaunts who have earned their degree certificates Multi-State accredited degree programs |
Notes:
SWOT Analysis
The following are the strengths, weaknesses, opportunities and threats of UOP:
- Strengths – Low tuition fee, low operating costs, service that identifies with the needs of the working-class adults and better professor-to-student interaction since the classes only hold a maximum of 12 students.
- Weaknesses- Only 65% graduate per lot on average, limited number of programs and generally online classes are not as good as physical class systems
- Opportunities – High number of working class adults interested in pursuing degree programs and need for credit transfer consideration
- Threats – Competition, limited use of information technology for the current target group and need for accredited programs, locally regionally and internationally
*
- Over the years, many potential working class students prefer pursuing a degree program that identifies with their job market. They also seek Multi-State accredited programs and Internationally recognized programs.
- The changing preference of technology-based systems in accessing e-learning and virtual class materials needs a information technology platform that is well developed and highly refined
- Currently, UOP does not address this issues satisfactorily, and thus needs to lay out strategic plans that will improve its information technology systems, increase its range of accredited degree programs that are highly relevant to working-class individuals from various professional fields.
Notes:
Problem definition
The main challenges facing UOP are:
- Increasing the range of accredited programs
- Laying out information technology structures that will help upcoming target group use UOP online learning system wit ease
- Improving the number of grandaunts per lot through a genuine system
*
- An alternative solution that UOP has is to expand its reach to international markets. In the due course, it will need to have it’s programs evaluated for consistency with international standards.
- Offering regionally and internationally recognized programs also help UOP better its competitive advantage over its current and upcoming competitors
Notes:
Alternative solutions
The alternative solutions that UOP has is to expand its reach to international markets and to increase the range of regionally and internationally recognized programs
*
- In the pursuit of a competitive advantage that will help UOP remain relevant in the market, doing a market research on the type of technology that online learners aged below 30 years needs to be conducted.
- The number of degree programs offered by UOP need to be increased in order to serve a wider market, and in a way that is specific to certain professional fields
- A research needs to be conducted on why there is a 35% that fails to graduate and undertake necessary intervention measures to significantly reduce the number of people who fail to graduate per lot
Notes:
Selected Solutions
The selected solutions are:
i) In the pursuit of a competitive advantage that will help UOP remain relevant in the market, doing a market research on the type of technology that online learners aged below 30 years needs to be conducted.
ii) The number of degree programs offered by UOP need to be increased in order to serve a wider market, and in a way that is specific to certain professional fields
iii) A research needs to be conducted on why there is a 35% that fails to graduate and undertake necessary intervention measures to significantly reduce the number of people who fail to graduate per lot
*
- The implementation of these solutions need to be laid out through a system that involves an action item record, key performance indicators and monitoring tools
- The action items needs to focus on the three selected solutions namely, increasing the number of programs offered, undertaking a research on the information technology structures that need to be installed and carrying out a study a research survey on the reason why there is only a 65% graduation rate per lot
- From the findings, strategies to counter each of these limitations need to be laid out and performance of the strategy checked through appropraite key performance indicators
Notes:
Implementation
The implementation of these solutions need to be laid out through a system that involves an action item record, key performance indicators and monitoring tools. The action items needs to focus on the three selected solutions namely, increasing the number of programs offered, undertaking a research on the information technology structures that need to be installed and carrying out a study a research survey on the reason why there is only a 65% graduation rate per lot.
*
- In order to get a better competitive advantage, UOP needs to use a market approach focus strategy that will help it lower its cost of programs, differentiate its programs to meet the needs and various dynamics of its current and future target group and enhance speed in its service delivery with higher efficiency.
- To achieve this, it can adopt long term contracts on its tutors as this will reduce the cost of hiring tutors. Computerized integrated information systems with higher level of synchronization will also help UOP increase its efficiency
- Redesigning the programs to match both local and major international target markets would also help derive a competitive advantage on the grounds of differentiation in market approach focus.
Notes:
Recommendation
To achieve derive a competitive advantage through cost leadership, differentiation and speed-time strategy in this scenario, UOP can adopt long term contracts on its tutors in order to reduce the cost of hiring tutors. Computerized integrated information systems with higher level of synchronization will also help UOP increase its efficiency resource utilization.
Redesigning the programs to match both local and regional target markets would also help derive a competitive advantage on the grounds of differentiation in market approach focus.
*
- While UOP has been a market leader in this line of service, it is evident from its SWOT analysis that it will need to employ a defined market approach focus through low cost, differentiation and speed-time strategy.
- If the fees charged will be reduced, UOP will likely get more people enrolling in for the programs. Differentiation of the programs will not only make the programs more specific to certain professional fields and target groups, but will also increase the number of programs available, and hence a higher enrollment rate
- By facilitating a higher number of successful grandaunts per lot, there will more room to enroll more students in the subsequent semesters.
- Through this combination, UOP will be better placed in the market over its close competitors.
Notes:
Conclusion
While UOP has been a market leader in this line of service, it is evident from its SWOT analysis that it will need to employ a defined market approach focus through low cost, differentiation and speed-time strategy. By reducing the fees, increasing number of programs, adopted new information technology and countering the barriers that hinder 100% graduation rate, UOP will be better placed in the market over its close competitors.
*
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition. (13th ed.). New York, NY: McGraw- Hill/Irwin.
Porter, M. (1998) What is strategy?.The Strategy Reader, Published: Blackwell in association with The Open University.
Notes:
Reference
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition. (13th ed.). New York, NY: McGraw- Hill/Irwin.
Porter, M. (1998) What is strategy?.The Strategy Reader, Published: Blackwell in association with The Open University.
*
