Porter's Five Forces Model For Higher Education

Improved Essays
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
…show more content…
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

Related Documents

  • Improved Essays

    Mark Edmundson in his “On the Uses of a Liberal Education: As Lite Entertainment for Bored College Students” attempts to dissolve the notion that we take full advantage of a Liberal Education. He claims that colleges and the students within them are too obsessed with an ever-abundant consumerism that damages their potential for growth. As a result of being addicted to this culture of consumption, students do not have the ambition or drive they once did to achieve academic excellence. He claims that many tend towards an easier topic within liberal art rather than more vigirous courses. While one can easily find much to critique in his methods and solutions, it can be seen that he does have a strong basis for his argument.…

    • 639 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    In today’s society it is believed that education is the key to success, and compared to just 50 years ago a high school diploma just does not cut it anymore. It is expected by employers that applicants have at least bachelor’s degree for many professions. Given the high pace world that we live in today some students simply do not have the time or resources to go away to four-year universities. These students often turn to alternate forms of education, including community or for-profit colleges. With community colleges filling up fast these days some students turn to for-profit colleges to achieve their secondary education desires.…

    • 1377 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Berkeley represents an environment where faculty and staff, as well as students break norms and challenge the impossible. Therefore, those who attend or wish to attend will also have the drive and ambition to soak in this brilliancy. Not only that, but they will also immerse themselves in a culture that is a hotbed for political, social, and economic movements; that is what makes Berkeley, Berkeley. Overall, this image of Berkeley revolving around the brand allows the academic institution to create a strong brand positioning in the market; people are aware of its significance and will continue to place great value on…

    • 663 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Playing into the generalization of a “multiyear vacation” is what leads to low retention rates from students unwilling to work and a stain on the university’s name. Most establishments put on a face of high expectations to draw in students and that is reflected in their marketing…

    • 1672 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    The real strength of Targeted marketing is that it leads to higher student satisfaction, and market success is enhanced in the long run. (Lewison & Hawes,…

    • 1421 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    "Organizational imperatives" are the interests determined by universities to ensure their survival and reputation in the higher education system (Armstrong and Hamilton 2013: 19). Three primary imperatives—solvency, equity, and prestige maximization—significantly pressure universities to adopt an academic and social infrastructure that simultaneously fits the interests of students with their own (Armstrong and Hamilton 2013: 19, 20). Universities achieve solvency with the help of tuition revenue and state funding that make higher education more affordable to students. Deep state budget cuts, however, has led to a major increase in tuition and large-scale recruitment of upper and upper-middle-class, out-of-state students who bring in more tuition…

    • 961 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Is College Doomed?

    • 1561 Words
    • 7 Pages

    Schools today have strayed from the original educational goal of educating our population to a higher standard. They have focused on making profit rather than providing the best education they possibly can. Colleges today should focus on helping to spread education throughout the world in any way they can. Graeme Wood’s article “Is College Doomed?” shows a new, nontraditional college called Minerva. Colleges as they are today should be known as businesses rather than schools.…

    • 1561 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    As Carey said, “There’s no doubt that the worst for-profits are ruthlessly exploiting the commodified college degree. But they didn’t commodify it in the first place”(p220). Carey’s point is that all colleges, regardless of profit status, are basically selling their students a gambol; there is no certainty as to whether any college student will be able to get a job and pay back the debts they acquired while getting their education. Along with this, he points out how the quality of education is determined by “regional accreditation,” and by this standard, nonprofit schools offer no better education than for-profits.…

    • 585 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    As a freshman football player at Missouri Southern State University, I am fresh off the recruiting process. The recruiting process is an exact example of what Edmundson was speaking of when it comes to the business aspect of universities. From looking at other colleges and going on visits to different schools, I got a high dose of what it feels like to be a customer rather than a student. It felt like no matter where I went, the first thing I saw was the nicest facilities the school had to offer. Indoor practice facilities, locker rooms, recreational centers, dining halls, on campus housing and dorms, and even sites and hot spots around the town I could hang out at and meet people.…

    • 1220 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    1.Introduction Paragraph The taxi has for quite some time been one of the prevailing types of transportation in urban areas around the world. Medallions are small metal plates which are attached to the hood of the vehicle as proof of the right to pick up passengers, who can only hail yellow cabs with a medallion in the street. Most cities placed government regulations to control the oversupply of taxis by late 1930s. This was intended to balance out costs, guarantee the wellbeing and nature of cabs, and give drivers a reasonable wage.…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    R Inc Case Study Solution

    • 989 Words
    • 4 Pages

    UVI started in 1962 has been successful until the economic downturn in 2008. For the past few years there has been threats pointing in the direction of the future success for UVI. To remain competitive as well as profitable UVI can adopt the Porters 5 force model, and in so doing decide what is changing, what needs to change and change with the change, so that it can be competitive and remain in the market. External Analysis • Economic down which resulted in decreased student enrollment • A decrease in unemployment levels • Market include all types and sizes of universities with varied ability to access funding • Technological advancement in terms of computerization are taken advantage of and used Industry Analysis • Customers - students • Market – high school leavers, high achievers, • Competitors – other universities and colleges Possible Threats • Other colleges and universities offering the same opportunities Possible Opportunities • Affordable tuition rates • Relatively safe environment and campus • Small classes (12:1 student to teacher ratio) • Location – Tropical weather and physical location of campus Internal Resourceful faculty Traditional learning environment…

    • 989 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Porter’s Five Forces Model of Competition The five forces analysis addresses industry factors affecting competition within the areas of rivalry, barriers to entry, bargaining powers of suppliers and buyers, and the threat of substitutes. For SiriusXM to remain competitive within the radio broadcast industry, they must carefully monitor and address each of these forces. Rivalry Intensity – (Strong). Rivalry within the radio broadcast industry is a strong force, as many options are available to consumers.…

    • 981 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    d) threats. 41. According to Porter’s competitive forces model, there are five major forces in an industry that affect the degree of competition. Those five forces impact: a) sales. b) profit margins.…

    • 2146 Words
    • 9 Pages
    Improved Essays
  • Superior Essays

    Assignment Task 2: Porter’s Five Forces Analysis: Porter’s five forces analysis explains the factors that put an impact on the competition in the determined industry or market. There are the five main factors that affect the competition in the different aspects of the market and disturb the actual working. Here are these porter’s five forces. 1. The Threat of Substitute Products:…

    • 1483 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    What Is Somersby Cider?

    • 2201 Words
    • 9 Pages

    Introduction Somersby cider is a brand of 4.5% ABV cider by Danish brewing company Carlsberg Group. Developed in 2008, it was originally developed for the Danish market, but today has been launched in more than 46 markets, including all of Europe, Ukraine, Russia, Australia, Malaysia, Taiwan, South Korea, Canada, Nepal and the USA. Of the world's ten biggest cider brands, Somersby was the one that grew most in 2012. In 2012, Carlsberg UK developed and introduced a new version of Somersby Cider specific to the United Kingdom market.…

    • 2201 Words
    • 9 Pages
    Improved Essays