Thursday, 20 September 2018

Of stars, cows and dogs?

As Universities become more "corporate" there will be a clear recognition of "profitability", "strategic drivers" and other such jargon.  Gone, the Newmanesque ideal of University in favour of the Higher Education business model.
Let's look at the typical Business School in the typical University through the lens of a key business model - the Boston Matrix.  This model suggests that investment should be in stars and cash cows - to sustain earnings in the future and divestment of dogs and some question marks (cash drains and unlikely to provide a profit.)

Reproduced from unknown authors under Creative Commons License and "Boy" by your author.
Stars are in areas of high market growth, where providers have a good market presence and share.  Degrees with "Finance" in the title or the even more mysterious terms "Management" or "Marketing"  are typical of Stars. Stars can become Cows over time as market growth slows or competition increases.  Dogs, on the other hand, are the poor relations.  They are small players in back-water and neglected disciplines, enjoying words such as "Operations Research" or "Banking" in their titles.
Some Question marks become stars if they are given the right investment and nurture.

Follow this logic to a natural conclusion and we'll see that all providers end up with the same bland offerings in major areas with specialisms relegated to "pathways" or "options" or, even worse, de-listed.

If only Business Schools went on to read Chapter 2 of the strategy textbook and recognised that in a fixed price environment it is differentiation that will win in the longer-term.

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