Capstone - Strategic Mgmt (Bus 189)

Second In-Class Midterm

1. Industry Life Cycle

On my Industry Life Cycle, I have located University of Phoenix (UOP) on the post-shakeout phase. Since UOP has been around since 1978, they have proven to be one of the stronger contenders of higher education enterprises in the United States. According to the case study, UOP has about “850 for-profit institutions offering degrees in the United States, up from around 600 in 1996,” and has an extensive customer base of 400,000 students. When comparing this to one of their largest competitors, Corinthian College, the college does not have a strong direct competitor to UOP. Corinthian College “focuses primarily on diploma or certificate courses designed for students with little or no college experience who are looking for entry level jobs.” (C78) On the other hand, UOP has set a specialized curriculum for their students, focusing on practical subjects, such as business, nursing, and criminal justice. This is favorable to the working class, especially for those who wish to move up in their careers. This shows that UOP surpasses the “shakeout” era and is currently at the post-shakeout, late growth stage. UOP’s niche is the working class and also providing a very unique type of education; smaller classroom sizes (10-15 students per class), customized textbook online modules, huge selection of online courses, and year round class scheduling. (C74) UOP concentrates mostly on attracting new sales, market share of students shopping for higher education. They have found their market strategy, differentiation. UOP offers a learning environment that is flexible and applicable for working adults, ages 24-50. Continuing to target this segment will reward them with continued success.

On the Industry Life Cycle, San Jose State University (SJSU) is placed on the mature stage. San Jose State has been around since 1857; however, they continue to thrive at providing students with higher education. Since the higher learning industry is...