20144 MGMT 4500 Sec 20SS
Business,Govt. and Society
Business Model at Devry University
- Introduction
With the large number of user now using the internet for e-learning, e-learning has become a very good source of information and continuing learning. That is why many universities including Harvard, Wharton are also offering online courses to be able to reach students from different parts of the world.
There are two types of business models being adopted by universities worldwide. One is offering the courses in various subjects free of cost. This is done as a part of social responsibility. The added advantage is that it also acts as a marketing strategy for the university. If a student actually finds the course interesting and is able to grasp the study material, he might want to attend a regular course.
The other business model is profit based in which courses are offered for the cost and for profit.
In this model all the courses being offered online have a cost attached to it. It is a bit more organized, and the university helps students to plan their courses. Also, at the end of the
- Customer Value Proposition
Devry is a for-profit University. In implementing this business model, the university values all students. In America, most people who want to go get college degrees fail to be admitted in conventional schools (Helman, 24). This is where the University comes in to offer online studies, ensuring it serves people through the online approach. Jonathan puts it clear that the university offers physics and English literature courses mostly to prepare them well. Most people who are employed prefer this model as they can find time for their studies to expand their knowledge. The university has a culture of valuing its clients, giving it a competitive advantage.
3. Profit Formula
Jonathan claims that the University’s revenue model is the major source of funds. Through online classes, the university is able to attract many people from various parts of the world to take studies in the university. This has increased the school’s enrollment. Such enrollments play a significant role in giving the university its revenue. In the interview, Jonathan states that Devry University was ranked among the best colleges in the Midwest region in 2013. The university took cost structure into account in adopting the online model. This is evidenced by the several financial documents in the university’s management department. This business model does not entail much, ensuring that the university constantly gets profits (Barnes-Vieyra et al. 15). A thorough analysis of the university’s margin model reveals that the school is in a better position financially. As to resource velocity, Jonathan is of the opinion that the University covered the cost structure seamlessly because of the high speed in which the assets and inventory achieved. This is essential in putting the university in a stable condition.
- Key Resources
The university’s key resource is the people who form the school’s family. Because of its online nature, the university has students from all over the world undertaking online studies. The adequate number of facilitators plays a crucial role in serving these people. With a large number of non-teaching staff, the university is well-equipped t address any needs that may arise. It has several tangible assets that were instrumental in its move to adopt an online business model. Jonathan claims that facilitators have centers through which they can offer lessons (Hrastinski, 78). It has several information channels through which interested parties can communicate. Its online presence is crucial as more people prefer to use online mechanisms for communication purposes. Through their website, one can find any information they want to know about the university.
- Key Processes
The university seeks to have simple processes for anybody wishing to join. The complications in admission processes are a deterrent for people wishing to join the school. To make this exercise easy, the university has a self-guide tool to give potential clients a chance of understanding how the school operates. Through the university’s MyCompass to Day 1, it is easy for people to understand what is expected of them (Hrastinski, 82). The university has rules and metrics that all students are expected to follow.
Refernces:
Barnes-Vieyra, Pamela, and Cindy Claycomb. "Business-to-business E-commerce: models and managerial decisions." Business Horizons 44.3 (2001): 13-20. Print.
Helman, Deborah, Eric Addeo, and David Walters. "Ubiquity and integration in m-Health: Implications for brand management." 3.2 (2011): Print.
Hrastinski, S. "A Theory Of Online Learning As Online Participation." Computers & Education 52.1 (2009): 78-82. Print.
