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Unlike other universities, UOP is a for-profit institution. Synopsis of the Situation The University of Phoenix catered to the working adults who wanted to continue their education. It was one of the first institutions to target this growing market. They are considered the giant in the industry and as such have earned $2.5 billion in revenues in 2006. While many colleges employed full-time faculty members, UOP hired working professionals as teachers. The success of the Apollo Group emanates from the fact that they were able to tap an unserved niche in the market, that is, the working adults.
Key Issues The key issues of the case are the growing demand for online education not only in the US but also in the developing countries, the need to open up new local campuses and the need to improve the existing technology that UOP utilizes. Define the Problem The problem presented in the case is how to change the reputation of UOP from a “diploma mill” establishment to one which is offers accredited degree programs and an institution that will introduce new undergraduate and graduate degree programs that will meet the needs of both the adult working population and the traditional collegiate market.
Alternative Solutions There are several solutions that may be adapted by UOP namely: Use the media to give information about programs that they offer, the competence of their faculty members and the academic system that they use Highlight the low cost of tuition as compared to other colleges Create tie-ups with large corporations to encourage their employees to enroll at UOP; discounts may be given to corporations which enrolls a certain number of their workers at UOP Advertise through the internet to capture foreign markets and increase its student population Put emphasis on the concept of offering quality education at schedules that are accessible even to working adults Need to invest more on latest technology available for educational institutions especially with regards to online education Selected Solution to the Problem The selected solution to the problem is a combination of all the alternative solutions presented above.
UOP cannot just rely on a single solution to its problems. It should improve its course and program offerings and hire more competent faculty members. It is also essential that UOP keep abreast with the latest technological advancements in the industry. After improving on the said aspects, it must allocate the necessary funds to come up with an advertising strategy that will improve its reputation by highlighting its unique selling point and emphasizing the quality of its education. Implementation The solutions suggested would take several months to implement.
The first step to do is to research on the latest technology available for online education. This is of utmost importance because several schools are already offering online programs and if UOP does not adapt the latest technology, they might not be able to retain its market leadership. The next step is to beef up its marketing to other developing countries. This should be done because in case they lose their leadership in the US market, the foreign market can augment any decline in enrollment in the local market.
Expanding overseas is the way to go for online education. Hand in hand with marketing to the foreign market, UOP must recruit new faculty members to maintain the ratio of students to
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