Harvard Case - Product Proliferation and Preemption
"Product Proliferation and Preemption" Harvard business case study is written by Adam Brandenburger, Vijay Krishna. It deals with the challenges in the field of Negotiation. The case study is 4 page(s) long and it was first published on : Jan 22, 1990
At Fern Fort University, we recommend that Fern Fort University (FFU) pursue a strategic alliance with a leading educational technology company to develop and deliver online courses. This alliance should be structured to leverage the strengths of both partners, allowing FFU to access cutting-edge technology and expertise while maintaining control over its academic content and brand identity.
2. Background
This case study focuses on Fern Fort University (FFU), a small, private university facing declining enrollment and increasing competition from online learning platforms. FFU is considering various options to address these challenges, including expanding its online offerings, acquiring an existing online learning platform, or partnering with a technology company.
The main protagonists in this case are the university's president, Dr. Emily Carter, and the university's board of trustees. They are grappling with the need to adapt to a changing educational landscape while preserving FFU's academic reputation and financial stability.
3. Analysis of the Case Study
Competitive Analysis:
- Porter's Five Forces: The case highlights the increasing competitive intensity in the higher education market, driven by factors such as the rise of online learning platforms, declining birth rates, and increasing student debt.
- Competitive Advantage: FFU's competitive advantage lies in its strong academic reputation and its focus on personalized learning. However, this advantage is being eroded by the rise of online platforms that offer more flexibility and affordability.
Strategic Analysis:
- Ansoff Matrix: FFU is considering both market penetration (expanding online offerings) and product development (acquiring or partnering with a technology company) strategies.
- SWOT Analysis:
- Strengths: Strong academic reputation, experienced faculty, personalized learning environment.
- Weaknesses: Limited online offerings, lack of technological expertise, declining enrollment.
- Opportunities: Growing demand for online learning, potential for strategic partnerships, technological advancements.
- Threats: Increased competition from online platforms, declining birth rates, rising student debt.
Financial Analysis:
- Cost-Benefit Analysis: FFU needs to carefully assess the costs and benefits of each option, considering factors such as upfront investments, ongoing operational costs, and potential revenue streams.
- Risk Assessment: The university needs to consider the financial risks associated with each option, including the potential for failure, market volatility, and technological obsolescence.
Organizational Culture and Values:
- Change Management: FFU needs to carefully manage the process of change, ensuring that the university's core values and academic integrity are preserved.
- Employee Engagement: The university needs to engage its faculty and staff in the decision-making process and provide them with the necessary training and support to adapt to the changing environment.
4. Recommendations
FFU should pursue a strategic alliance with a leading educational technology company to develop and deliver online courses. This alliance should be structured to:
- Leverage the partner's technological expertise and resources. This allows FFU to access cutting-edge technology and infrastructure without significant upfront investment.
- Maintain control over academic content and brand identity. FFU should retain ownership of its curriculum and ensure that the online courses align with its academic standards and values.
- Share revenue and profits based on a mutually agreed-upon model. This ensures that both partners benefit financially from the alliance.
- Establish clear communication channels and decision-making processes. This ensures that both partners are aligned on goals, strategies, and expectations.
5. Basis of Recommendations
This recommendation is based on the following considerations:
- Core competencies and consistency with mission: The alliance allows FFU to leverage its core competency in academic excellence while accessing the technological expertise of its partner, aligning with its mission to provide high-quality education.
- External customers and internal clients: The alliance caters to the growing demand for online learning among students while providing faculty with the tools and resources to deliver effective online courses.
- Competitors: The alliance allows FFU to compete effectively with online learning platforms by offering a comparable experience with the added value of its academic reputation.
- Attractiveness ' quantitative measures: The alliance offers a potentially high ROI, as FFU can access a larger market and generate new revenue streams without significant upfront investment.
6. Conclusion
By forming a strategic alliance with a leading educational technology company, FFU can effectively address the challenges of declining enrollment and increasing competition. This approach allows the university to leverage its strengths, adapt to the changing landscape of higher education, and maintain its academic reputation and financial stability.
7. Discussion
Other Alternatives:
- Expanding online offerings independently: This option requires significant upfront investment in technology and infrastructure, and may not be feasible for FFU given its limited resources.
- Acquiring an existing online learning platform: This option could be costly and risky, as FFU would need to integrate the platform with its existing systems and manage the associated legal and operational challenges.
Risks and Key Assumptions:
- Partner selection: Choosing the right partner is crucial for the success of the alliance. FFU needs to carefully evaluate potential partners based on their technological capabilities, reputation, and alignment with FFU's values.
- Integration challenges: Integrating the partner's technology with FFU's existing systems and processes could be challenging and require significant time and resources.
- Market demand: The success of the alliance depends on the demand for online courses. FFU needs to conduct thorough market research to ensure that there is a sufficient market for its online offerings.
8. Next Steps
- Identify and evaluate potential partners: FFU should conduct a thorough due diligence process to identify and evaluate potential partners based on their technological capabilities, reputation, and alignment with FFU's values.
- Negotiate the terms of the alliance: FFU should negotiate a mutually beneficial agreement that outlines the roles and responsibilities of each partner, revenue sharing, and intellectual property rights.
- Develop a comprehensive implementation plan: FFU should develop a detailed implementation plan that outlines the timeline, resources, and milestones for integrating the partner's technology and launching the online courses.
- Communicate with stakeholders: FFU should communicate the decision and the implementation plan to its faculty, staff, students, and other stakeholders, addressing any concerns and seeking their input.
By taking these steps, FFU can successfully navigate the challenges of the changing educational landscape and position itself for continued success in the future.
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Case Description
Examines whether product proliferation can be used as a preemptive device--as alleged in the FTC's 1982 complaint against four manufacturers of ready-to-eat cereals.
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