Porter's Five Forces Model For Higher Education

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Porter’s Five Forces framework

According to Gold, Godsey, and Josiah (2004) Porter's Five Forces model is focused on "the underlying fundamentals of competition that are independent of the specific strategies used by market competitors including: (1) potential entrants; (2) suppliers; (3) buyers; (4) substitutes; and (5) industry competitors" (p. 371). With this model organizations are able to assess the market and develop strategic plans while fully understanding the many different aspects of the industry. The potential entrants and industry competitors in the higher education industry could include current organizations expanding their products/services, newly developed organizations, as well as the online opportunities in the education
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The image, reputation, academics, and overall brand orientation are extremely important when it comes to successful marketing because those things determine the value of the services provided (Casidy, 2013). There is plenty of competition in the higher education industry, which makes it extremely important that organizations communicate effectively to its prospective consumer (Schüller and Rasticová, 2011). Unfortunately, marketing by for-profit institutions may be targeting an underpriviledged group as information shows that students from lower income families are the highly present in for-profit schools (Deming, et al., 2013; Ullrich & Pratt, …show more content…
Focusing on students allows these universities to speak directly to the concerns and needs of the potential students and tailor their organizations to meet those needs. Building student focused programs allows the institutions to create better experiences for students and improve reputation. It is important to build a good brand, not only can a good brand help in attracting students, it can also help in the employability of students as well (Casidy, 2013; Schüller and Rasticová, 2011). Students that have positive and meaningful experiences with their institution may also be more likely to refer friends and family to the school. Many schools are able to stay competitive, and keep enrollment up, thanks to the referrals of their current and past

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