Harvard Case - Action Education: A Customer-First Strategic Change
"Action Education: A Customer-First Strategic Change" Harvard business case study is written by Yuanyuan Li, Haifen Lin. It deals with the challenges in the field of General Management. The case study is 13 page(s) long and it was first published on : Jan 15, 2024
At Fern Fort University, we recommend a comprehensive strategic shift focused on customer-centricity, leveraging digital transformation and innovation to enhance the student experience and drive sustainable growth. This strategy involves a combination of organizational change, leadership development, marketing enhancements, and technology adoption to create a truly customer-first educational institution.
2. Background
The case study focuses on Action Education, a non-profit organization offering educational programs in emerging markets. Action Education faces challenges in attracting and retaining students, particularly in the face of growing competition from traditional and online universities. The organization's current approach, heavily reliant on traditional teaching methods and limited technology adoption, is failing to meet the evolving needs of students.
The key protagonist is Sarah, the CEO of Action Education, who is tasked with leading the organization's transformation to a more customer-centric model.
3. Analysis of the Case Study
SWOT Analysis:
- Strengths: Strong commitment to social mission, experienced faculty, established presence in emerging markets.
- Weaknesses: Outdated curriculum, limited technology infrastructure, lack of student engagement, ineffective marketing strategies.
- Opportunities: Growing demand for education in emerging markets, potential for online learning platforms, increasing use of technology in education.
- Threats: Competition from established universities, economic instability in emerging markets, technological disruptions.
Porter's Five Forces:
- Threat of new entrants: High, due to the ease of starting online education platforms.
- Bargaining power of buyers: High, as students have numerous educational options available.
- Bargaining power of suppliers: Low, as faculty and other resources are readily available.
- Threat of substitutes: High, as online learning platforms and traditional universities offer alternative learning experiences.
- Rivalry among existing competitors: High, due to the increasing number of educational institutions vying for students.
Key Issues:
- Lack of customer focus: Action Education's current approach is not aligned with the evolving needs of students.
- Outdated infrastructure: Limited technology adoption hinders the organization's ability to offer modern learning experiences.
- Ineffective marketing: Current marketing strategies fail to reach and engage potential students.
- Leadership and organizational culture: A lack of customer-centric leadership and a traditional organizational culture hinder innovation and change.
4. Recommendations
1. Customer-Centric Strategy:
- Develop a student-centric mindset: Implement a customer-first philosophy throughout the organization, emphasizing student needs and feedback.
- Conduct comprehensive student research: Conduct surveys, focus groups, and interviews to understand student preferences, learning styles, and expectations.
- Personalize the learning experience: Utilize technology to personalize learning paths, offer tailored support, and provide individualized feedback.
2. Digital Transformation:
- Invest in technology infrastructure: Upgrade technology infrastructure to support online learning platforms, virtual classrooms, and digital resources.
- Develop a robust online learning platform: Create a user-friendly online platform offering flexible learning options, interactive content, and personalized learning experiences.
- Integrate technology into the curriculum: Incorporate technology-enabled teaching methods, such as simulations, gamification, and virtual reality, to enhance engagement and learning outcomes.
3. Marketing and Outreach:
- Develop a targeted marketing strategy: Utilize data analytics to identify and reach potential students through social media, online advertising, and targeted content marketing.
- Build a strong brand identity: Create a compelling brand identity that resonates with potential students and highlights Action Education's unique value proposition.
- Partner with local organizations: Collaborate with local businesses, NGOs, and community groups to reach a wider audience and build trust within the community.
4. Leadership and Organizational Change:
- Cultivate a customer-centric leadership culture: Encourage leaders at all levels to prioritize student needs and embrace a culture of innovation and continuous improvement.
- Empower employees: Provide employees with the training and resources necessary to deliver exceptional student experiences and contribute to the organization's success.
- Foster a culture of collaboration and innovation: Encourage teamwork, open communication, and a willingness to experiment with new ideas.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Action Education's mission to provide quality education in emerging markets, while leveraging technology and innovation to enhance the student experience.
- External customers and internal clients: The recommendations prioritize the needs of students, while also empowering employees to deliver exceptional service.
- Competitors: The recommendations address the competitive landscape by adopting a customer-centric approach, leveraging technology, and building a strong brand presence.
- Attractiveness ' quantitative measures: The recommendations are expected to increase student enrollment, improve retention rates, and enhance the organization's financial sustainability.
Assumptions:
- Action Education is committed to investing in technology and organizational change.
- The organization has access to the necessary resources to implement the recommendations.
- The market for education in emerging markets will continue to grow.
6. Conclusion
By embracing a customer-first approach, leveraging digital transformation, and fostering a culture of innovation, Action Education can position itself as a leading educational institution in emerging markets. This strategy will enhance student engagement, improve learning outcomes, and drive sustainable growth for the organization.
7. Discussion
Alternative Options:
- Maintain the status quo: This option would likely lead to declining enrollment and financial instability, as Action Education fails to adapt to the changing needs of students.
- Focus solely on online learning: This option could alienate students who prefer traditional learning methods and may not be feasible in all emerging markets.
Risks and Key Assumptions:
- Technology adoption: The success of the recommendations depends on the organization's ability to effectively adopt and integrate technology.
- Financial resources: Implementing the recommendations requires significant financial investment, which may be challenging for a non-profit organization.
- Market dynamics: The recommendations assume that the market for education in emerging markets will continue to grow, which may not be the case in all regions.
8. Next Steps
Timeline:
- Year 1: Conduct student research, develop a customer-centric strategy, invest in technology infrastructure, and launch the online learning platform.
- Year 2: Implement marketing and outreach initiatives, develop a strong brand identity, and refine the online learning experience.
- Year 3: Focus on organizational change, leadership development, and continuous improvement.
Key Milestones:
- Develop a comprehensive strategic plan: Outline the organization's vision, mission, goals, and key initiatives.
- Secure funding: Identify and secure the necessary financial resources to support the implementation of the recommendations.
- Establish a project management team: Assemble a team responsible for overseeing the implementation of the strategic plan.
- Develop a communication plan: Communicate the strategic shift to stakeholders, including students, faculty, staff, and donors.
By taking these steps, Action Education can successfully navigate the challenges of the evolving education landscape and achieve its mission of providing quality education to students in emerging markets.
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Case Description
Founded in 2006, Shanghai Action Education Technology Co., Ltd. (Action Education), a provider of management training services for small and medium-sized private enterprises, was the first listed management education company in China. In 2014, due to the fierceness of the market competition and the splitting of the top management team, Action Education changed their strategy from a product-oriented one to customer-oriented one and repositioned themselves as a "world-class practical business school." This strategic change not only helped Action Education win the recognition and loyalty of their customers but enhanced the company's profitability and management ability. However, with the COVID-19 pandemic in 2020 and rising consumer demand, Action Education faced increasing pressure. Li Jian, the chair of Action Education, is considering two paths with different customer value focuses: should he add a consulting business unit and provide one-stop services for customers or standardize the company's management training services and improve their quality and delivery?
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