Apollo Group Analysis

Unit 6 Case Study

Apollo Group Analysis

Kaplan University

School of Business

MT460 management Policy and Strategy

Professor Bagley

March 12, 2013

Apollo Group Analysis

Introduction

The Apollo Group is the parent company of the University of Phoenix. The organization was started by John Sperling in 1976. Sperling’s goal was to transform what we consider to be the traditional views of higher education; and many people would say that he has accomplished that. Sperling focused his attention on the then-neglected market of working adults alternatively to catering to 18-22 year olds who have yet to find themselves. He also believed that the materials would be better taught by working professionals opposed to tenured professors (Apollo Group, Inc. 2011). He felt that individuals that were currently in those rolls would relate better to the demographic that he was looking to reach. The most progressive difference of all was the fact that Sperling ran his university to make money. This was unprecedented at the time. Most of all the other universities were not for-profit.

Synopsis of the situation

John Sperling had a vision. His vision was to tap the previously untapped market of non-degree holding working adults in the US. No one considered this market to be a worthwhile investment. Sperling knew that there was a wealth of opportunity to capitalize off of, but he had to convince others to see his vision. The next hurdle that he had to pass was convincing others that online education was the way of the future. No other schools were really using this platform for to deliver a full degree program. Keeping that in mind, there was really no benchmark to compare them to.

Key Issues

John Sperling was successful in taping the adult learner market. University of Phoenix found immediate successful in reaching their target market. There profits were very impressive. That was only the first hurdle. Online education was slow to catch on. Once UOP launched...