Responses to competition in Education?

Cristine Clarke, Ed. D.
Instructor Distance Learning at NC School Science and Mathematics

In thinking about business I can see 3 responses to competition 1. compete on price 2. add value to your service or product 3 develop new services or products I suppose you could also tear down your competitors. Are these the same options in education? Thoughts?

Steve Durkee
Market Strategist/Analyst/Executive Director

The competitive market in higher education is much like any other market. You have to set yourself apart with your competitive advantages. I think you did a good job at citing the broad aspect, but as you know from working in the industry it can be much more complex than price, value added service, developing new products. For example: Price is not just a sticker price - it is the actual COA (cost of attendance) minus various forms of financial assistance. That assistance can vary by institution. Even with federal loan funding, some schools use the Perkins loan program (which provides a significant cost advantage for students in subsidizing costs, grace period, and a very low interest rate) and some do not. Some states have programs where they will match institutional grants dollar for dollar. With the onset of the GI bill there, now vets that are eligible for funding can receive an amount equal to most expensive in-state tuition and fee costs at a public university in their state, plus a corresponding stipend for R&B. For value added service: One of the top two output measures for institutional effectiveness are the overall graduation rate (plus rate per program), as well as, how likely are the graduates from that program able to find jobs in their field within 6 months of graduation. Schools often distinguish themselves and the quality of education they provide by listing the companies that have hired their graduates. They also distinguish themselves by comparing graduation rates, and the services they add to your educational experience to ensure a higher graduation rates (entrance evals, tutoring programs, mentoring, industry internships, smaller classes, and the list goes on). Both are usually termed measures of institutional effectiveness. Developing new services - there are all kinds of new services that institutions are putting into place. Technology has really driven change in education, and you see change at every level of the market, especially with moving to forms of online applications. Even at the community college level they are adapting to meet the needs of a more dynamic, information driven student body. One of the community colleges I work with has transitioned to being almost 90% online, which is a great asset to today’s working single moms and dads. We are also seeing industry shifts to focus on the needs of the employment market, especially in healthcare and IT. With new programs, and their demand in the market place, has lead to a soar in business for private education startups. Despite their higher costs, many schools have established their competitive advantage by adapting with the market, which has drastically distinguished them when comparing output ratios. Overall, it is probably one of the most complex markets to work in, but that is why I love what I do. At the end of the day there is a certain level of satisfaction that goes along with improving the system so more people can continue to create better lives for themselves and their families. I hope I answered your question, if you have any other questions, please feel free to ask. Steve