Harvard Case - Frasier (A)
"Frasier (A)" Harvard business case study is written by Guhan Subramanian, Michelle Kalka. It deals with the challenges in the field of Negotiation. The case study is 13 page(s) long and it was first published on : May 1, 2001
At Fern Fort University, we recommend that Frasier adopt a strategic alliance with a larger, established university to gain access to resources and expertise, allowing them to expand their programs and reach a wider audience. This alliance should focus on joint ventures in areas of mutual interest, such as online learning, research collaborations, and student exchange programs.
2. Background
The case study focuses on Frasier, a small, private university facing challenges in attracting students and competing with larger, more established institutions. The university has a strong reputation for its liberal arts education but lacks the resources to expand its programs and compete effectively.
The main protagonists are:
- Dr. Frasier Crane: The university president, passionate about the institution's mission but struggling to find a way to secure its future.
- The Board of Trustees: Concerned about the university's financial viability and pushing for a more aggressive approach to growth.
- The Faculty: Concerned about maintaining the quality of education and resisting any changes that might compromise academic standards.
3. Analysis of the Case Study
Competitive Analysis: Frasier faces intense competition from larger universities with more resources and brand recognition. Its small size limits its ability to offer a wide range of programs and attract top faculty.
Financial Analysis: Frasier is financially constrained, limiting its ability to invest in new programs, technology, and marketing.
Strategic Analysis: Frasier needs to find a way to differentiate itself and gain a competitive advantage. This can be achieved by leveraging its strengths in liberal arts education and fostering strategic partnerships.
SWOT Analysis:
Strengths:
- Strong reputation for liberal arts education
- Dedicated faculty
- Strong alumni network
Weaknesses:
- Limited resources
- Small size
- Lack of brand recognition
Opportunities:
- Growing demand for online education
- Potential for strategic alliances
- Increasing focus on research
Threats:
- Competition from larger universities
- Economic downturn
- Changing student demographics
Porter's Five Forces:
- Threat of new entrants: High, due to the ease of establishing online learning platforms.
- Bargaining power of buyers: High, as students have many options for higher education.
- Bargaining power of suppliers: Low, as universities have access to a wide range of faculty and resources.
- Threat of substitute products: High, as students can choose alternative educational pathways, such as vocational training or online courses.
- Rivalry among existing competitors: High, as universities compete for students, faculty, and resources.
4. Recommendations
- Form a Strategic Alliance: Frasier should seek a strategic alliance with a larger, established university that complements its strengths and provides access to resources. This partnership should be structured as a joint venture, allowing both institutions to share risks and rewards.
- Focus on Joint Ventures: The alliance should focus on joint ventures in areas of mutual interest, such as:
- Online Learning: Develop joint online programs to reach a wider audience and reduce costs.
- Research Collaborations: Establish joint research centers to attract funding and enhance academic prestige.
- Student Exchange Programs: Offer reciprocal student exchange programs to broaden students' horizons and increase international exposure.
- Develop a Clear Value Proposition: Frasier should clearly articulate its unique value proposition, emphasizing its strengths in liberal arts education, personalized attention, and strong alumni network.
- Invest in Technology and Marketing: Frasier should invest in technology to enhance its online presence and marketing efforts to reach potential students.
- Strengthen Corporate Governance: Frasier should strengthen its corporate governance practices to ensure transparency and accountability. This includes establishing clear lines of communication between the board, administration, and faculty.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Frasier's core competency in liberal arts education and its mission to provide a high-quality education.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (students) and internal clients (faculty).
- Competitors: The recommendations address the competitive landscape by leveraging strategic alliances and focusing on areas where Frasier can differentiate itself.
- Attractiveness: The recommendations are attractive from a financial perspective, as they offer potential for cost savings, increased revenue, and enhanced academic reputation.
6. Conclusion
By forming a strategic alliance with a larger, established university and focusing on joint ventures, Frasier can leverage its strengths, gain access to resources, and expand its reach. This approach will enable the university to compete effectively in the evolving higher education landscape and secure its future.
7. Discussion
Alternatives:
- Merging with another institution: While a merger could provide access to resources, it could also lead to a loss of identity and academic autonomy.
- Focusing solely on online learning: This could be a viable option but would require significant investment in technology and marketing.
- Maintaining the status quo: This would likely lead to continued decline in enrollment and financial instability.
Risks and Key Assumptions:
- Finding a suitable partner: Finding a university with compatible values and goals is crucial.
- Managing the alliance: Effective communication and coordination are essential for a successful partnership.
- Maintaining academic quality: The alliance should not compromise the quality of education at Frasier.
8. Next Steps
- Identify potential partners: Conduct a thorough search for universities that align with Frasier's mission and goals.
- Negotiate terms of the alliance: Develop a detailed agreement outlining the scope, responsibilities, and financial arrangements.
- Implement joint ventures: Develop and launch joint programs in online learning, research, and student exchange.
- Monitor and evaluate the alliance: Regularly assess the progress and effectiveness of the partnership.
By taking these steps, Frasier can position itself for success in the competitive higher education landscape and ensure its long-term viability.
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Case Description
In 2001, NBC entered into contract negotiations with Paramount Television Group to keep the hit show "Frasier" on the network. Paramount, the studio that produced the show, threatened to move "Frasier" to CBS, Paramount's sister network, if NBC did not agree to a substantially higher license fee than the one it was currently paying. This case follows Marc Graboff's (EVP of NBC West Coast) analysis of the situation.
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