Case 3: “The Apollo Group, Inc. [University of Phoenix]”
Introduction
University of Phoenix stands as one of the dominating colleges particularly in offering higher education learning to adults. Currently, the college is regarded as the online education leader in the sector (Apollo group, Inc., 2011). The Apollo Group Inc. which hosts University of Phoenix is the largest private college in United States particularly among the universities that offer online lectures. In offering online education, University of Phoenix targets as customer base that is composed of a niche of students aged over 25 years who have already ventured in the workforce but still looking for further education in order to obtain a degree (Apollo group, Inc., 2011). Therefore, it is perceptible that the college has differentiated itself from other private and public universities which offer online lessons through the age of their target customer base. University of Phoenix
Synopsis
From the foundation date of the Apollo Group, the mission has been to reach potential students in the workforce who are mostly overlooked particularly with regards to attaining higher education (Apollo group, Inc., 2011). Therefore, in order to achieve this objective, the University of Phoenix ought to differentiate itself from other colleges in the same sector in order to retain its attractiveness to the target customers. As a result, the college has been offering affordable costs to their students which fall in the center of the spectrum. Precisely, the educations costs of the college are higher than those of the public colleges but slightly lower than those of private universities. It is worthwhile to state that differentiation and maintaining strong reputation is obligatory for the college to withhold its competitive advantage.
Key Issues
There is a significant change in the contemporary field of higher education in relation to the career of an individual as most people at the age of 25 years and above are becoming more concerned on obtaining a degree (Pearce & Robinson, 2011). Therefore, it is exhibited that University of Phoenix is doing quite well in their unique teaching techniques while offering online education to their potential students. However, the major challenge that the college is facing contemporary is stiff competition from private, public and proprietary universities. Therefore, in order to enhance its competitive advantage, university of phoenix ought to offer exceptional unique services that are limited to other online colleges (Pearce & Robinson, 2011). This requires flexibility and affordability of its services in order to attain its ultimate goal on its market niche.
SWOT Analysis
Strengths
Expansive brand portfolio
Domination in the online education industry
Strong balance sheet
Strong brand name
Recessive demand in online education
Weaknesses
High reliance on the University of Phoenix
Market concentration
Legal proceedings
Decreasing profitability
Opportunities
Joint venture and strategic acquisitions
Implementation of new educational programs
Increasing demand in online education
Growing prospect of the education market
Threats
Stiff competition
Economic deceleration in United States
Severe regulation
Rapid decline in enrollment
The Problem
It is factual that with the increasing demand in the online education, most of the universities are offering online course to the same target group for UOP thereby stiffening the competition. The increasing demand in online education is resulted by the fact that most working adults are seeking to attain higher education regardless of the compressed time schedules. Therefore, the problem is that most of these adults are seeking education from colleges with advanced technology and approved degree programs at affordable prices. It is perceptible that UOP has performed poorly in these requirements. This means that in order for UOP to increase their competitive advantage, it has to make market strategies and implement them
Alternative Solutions
University of Phoenix has the opportunity of modifying their target audience to more than 24 years as a way of responding to the stiffening competition in the market (Apollo group, Inc., 2011). Additionally, the college can expand to the international markets together with covering the remaining parts of the United States in order to cover a wider customer base. The other solution can be improving their technology as a strategic approach of attracting and retaining their clients.
Selected Solution
According to Pearce and Robinson (2011), it is factual that market focus helps the business increase its competitive advantage through differentiation and utilization of resources. The business is able to focus on the target customers and through research and development; it can be able to advance in order to cope up with the demands of the customers. Therefore, the selected solution for UOP challenges is to continue focusing on the markets and identify the demands of the customers which will help them maintain their domination in the online education market.
Implementation
It is significant that in order to retain and increase the competitive advantage, UOP ought to make strategic implementations. Precisely, implementation of new differentiation strategies will enhance the domination of UOP in the online education market. One of the differentiation strategies that UOP can make is offering their services at slightly lower prices compared to other colleges. The other implementation is increasing their technology in order to enhance their response to their customers, thereby promoting satisfaction and loyalty.
Recommendation
Continued focusing on their target market and make advancements with regard to the demands of the customers and strategies employed by their competitors
Conclusion
General, it is vital for University of Phoenix to make strategic implementations that are based on research and development on the basis of the changing market status. This will help the college retain its competitive advantage through continued domination in the online education market in U.S. ultimately, it is worthwhile to state that UOP is responding successfully to the stiffening competition and other changes in the market which the reason behind their continued domination.
References
Apollo group, Inc. (2011). Apollo group, inc. official website. Retrieved from http://www.apollogrp.edu/
Pearce, J. A., & Robinson, R. B. (2011). Strategic management: formulation, implementation, and control. (12th ed.). new york, NY: McGraw-Hill/Irwin.
