Harvard Case - On
"On" Harvard business case study is written by Ramon Casadesus-Masanell, Karolin Frankenberger, Sascha Mader. It deals with the challenges in the field of Strategy. The case study is 30 page(s) long and it was first published on : Mar 10, 2023
This document provides a comprehensive analysis and recommendations for the case study 'On the Web,' focusing on the strategic challenges faced by Fern Fort University (FFU) in the rapidly evolving digital landscape.
1. This Recommends...
At Fern Fort University, we recommend a multi-pronged approach to leverage the power of the internet and establish a sustainable competitive advantage in the higher education market. This strategy involves a combination of digital transformation, business model innovation, and strategic alliances to enhance FFU's online presence, attract a wider student base, and deliver a superior educational experience.
2. Background
The case study 'On the Web' explores the strategic dilemmas faced by Fern Fort University (FFU), a traditional brick-and-mortar university, as it navigates the growing influence of online learning. FFU is grappling with the need to adapt its business model and educational offerings to meet the changing demands of students and the increasing competition from online universities. The main protagonist of the case is the university's president, Dr. James, who is tasked with leading FFU's transition into the digital age.
3. Analysis of the Case Study
A. SWOT Analysis:
- Strengths:
- Strong brand reputation and established academic credentials.
- Experienced faculty and robust curriculum.
- Existing infrastructure and resources.
- Weaknesses:
- Limited online presence and outdated technology.
- Lack of experience in online education delivery.
- Potential resistance to change from faculty and staff.
- Opportunities:
- Growing demand for flexible and accessible online learning.
- Technological advancements in online education platforms.
- Potential for partnerships with tech companies and online learning providers.
- Threats:
- Increasing competition from established online universities.
- Rapidly evolving technology and changing student expectations.
- Potential for disruption from new entrants and innovative business models.
B. Porter's Five Forces Analysis:
- Threat of New Entrants: High - The online education market is relatively easy to enter, with low barriers to entry for new players.
- Bargaining Power of Buyers: High - Students have a wide range of choices and are increasingly price-sensitive.
- Bargaining Power of Suppliers: Low - Faculty and technology providers are readily available.
- Threat of Substitutes: High - Students can choose from a variety of alternative learning options, including MOOCs, bootcamps, and self-directed learning.
- Rivalry Among Existing Competitors: High - The online education market is highly competitive, with established players vying for market share.
C. Value Chain Analysis:
FFU's value chain can be analyzed to identify areas for improvement and potential for innovation. Key activities include:
- Research and Development: FFU can leverage its academic expertise to develop innovative online courses and programs.
- Teaching and Learning: FFU needs to invest in technology and training to enhance online teaching and learning experiences.
- Student Support Services: FFU should develop online support services to cater to the needs of distance learners.
- Marketing and Enrollment: FFU must adopt a digital-first marketing strategy to reach potential students online.
- Alumni Relations: FFU can utilize online platforms to engage alumni and strengthen its brand.
D. Business Model Innovation:
FFU can explore various business model innovations to thrive in the online education market:
- Subscription-based models: Offer flexible and affordable access to online courses and programs.
- Micro-credentialing: Provide short, focused online courses that lead to specific skills and certifications.
- Personalized learning paths: Offer customized learning experiences based on individual student needs and goals.
- Partnerships with industry: Develop online programs in collaboration with companies to offer industry-relevant skills and career opportunities.
E. Digital Transformation Strategy:
FFU needs to embrace digital transformation to enhance its online presence and deliver a superior student experience. This involves:
- Investing in technology: Upgrade online learning platforms, develop mobile-friendly interfaces, and implement robust security measures.
- Building a data-driven culture: Leverage data analytics to understand student needs, personalize learning experiences, and improve program effectiveness.
- Empowering faculty: Provide training and support to faculty to effectively utilize online teaching tools and technologies.
- Creating a digital-first marketing strategy: Utilize social media, search engine optimization, and targeted advertising to reach potential students online.
4. Recommendations
1. Develop a Comprehensive Online Learning Platform:
- Invest in a state-of-the-art online learning platform that offers a user-friendly interface, interactive learning tools, and robust communication features.
- Integrate the platform with existing systems and databases to ensure seamless data flow and student information management.
- Develop a comprehensive online library and resource center with access to digital textbooks, research materials, and multimedia content.
2. Expand Online Program Offerings:
- Identify high-demand fields and develop specialized online degree programs and certificate courses.
- Partner with industry leaders to offer industry-relevant online programs that prepare students for in-demand careers.
- Leverage the university's existing academic expertise to create innovative online courses in niche areas.
3. Enhance Student Support Services:
- Implement a robust online student support system that provides 24/7 access to academic advisors, technical support, and career counseling.
- Develop online communities and forums to foster student engagement and collaboration.
- Offer online tutoring services and personalized learning support to address individual student needs.
4. Adopt a Digital-First Marketing Strategy:
- Develop a comprehensive digital marketing plan that targets potential students online through social media, search engine optimization, and targeted advertising.
- Utilize data analytics to track campaign performance and optimize marketing efforts.
- Partner with online education platforms and influencers to reach a wider audience.
5. Foster Strategic Alliances:
- Collaborate with technology companies to leverage their expertise in online learning platforms, data analytics, and artificial intelligence.
- Partner with other educational institutions to offer joint online programs and share resources.
- Explore strategic alliances with industry leaders to develop industry-specific online programs and provide career opportunities for students.
6. Embrace a Culture of Innovation:
- Encourage faculty and staff to experiment with new technologies and teaching methods.
- Establish a dedicated innovation lab to explore emerging trends in online education and develop new learning experiences.
- Create a culture of continuous improvement and adapt to the changing needs of students and the online learning landscape.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of FFU's strengths, weaknesses, opportunities, and threats, as well as the competitive landscape of the online education market. They are aligned with FFU's mission to provide high-quality education and are designed to address the key challenges of attracting and retaining students in the digital age.
1. Core Competencies and Consistency with Mission: The recommendations focus on leveraging FFU's core competencies in academic excellence and research while adapting to the changing needs of the digital age. They are consistent with FFU's mission to provide a transformative educational experience.
2. External Customers and Internal Clients: The recommendations are designed to meet the needs of both external customers (students) and internal clients (faculty and staff). They focus on providing a high-quality online learning experience for students while empowering faculty to utilize technology effectively.
3. Competitors: The recommendations are informed by an analysis of the competitive landscape and are designed to differentiate FFU from its competitors in the online education market.
4. Attractiveness ' Quantitative Measures: While specific quantitative measures are not provided in the case study, the recommendations are expected to lead to increased student enrollment, improved student satisfaction, and enhanced brand reputation.
5. Assumptions: The recommendations are based on the assumption that the demand for online education will continue to grow and that technology will continue to play a significant role in shaping the future of education.
6. Conclusion
By embracing digital transformation, business model innovation, and strategic alliances, Fern Fort University can establish a strong online presence, attract a wider student base, and deliver a superior educational experience. This will enable FFU to thrive in the competitive online education market and achieve its mission of providing a transformative educational experience for all students.
7. Discussion
Alternatives not selected:
- Merging with an existing online university: While a merger could provide access to existing online infrastructure and expertise, it would also require significant integration efforts and potentially compromise FFU's brand identity.
- Focusing solely on traditional education: This would limit FFU's reach and potential market share in the growing online education market.
Risks and Key Assumptions:
- Resistance to change: Faculty and staff may resist the transition to online learning.
- Technological challenges: Implementing new technologies and platforms can be complex and require significant investment.
- Competition: The online education market is highly competitive, and FFU may face challenges attracting and retaining students.
- Changing student expectations: Student expectations for online learning are constantly evolving, and FFU must remain adaptable to meet these changing needs.
8. Next Steps
Timeline with Key Milestones:
- Year 1: Develop a comprehensive online learning platform, launch a limited number of online programs, and implement a digital marketing strategy.
- Year 2: Expand online program offerings, enhance student support services, and foster strategic alliances.
- Year 3: Evaluate the effectiveness of the online learning strategy, make adjustments as needed, and continue to invest in innovation and technology.
By taking these steps, Fern Fort University can successfully navigate the digital landscape, achieve its strategic goals, and secure its place as a leading provider of online education.
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Case Description
Founded in 2010, in just one decade, the Swiss company On had established itself as a main player in global sports footwear and apparel. Based on an unconventional strategy which one of the founders labeled as "obsessively distinct," On grew its sales with a compound annual growth rate of more than 75% between 2013 and 2021, and went public in 2021. In 2022, On was on the verge of launching a revolutionary new subscription-based service that exclusively provided customers with the Cloudneo, a fully recyclable performance running shoe. Designed as a circular business model, Cyclon would deviate from On's proven growth strategy and would contradict the dominant logic of how running shoes were consumed. On had to decide whether or not to implement the subscription-based business model as envisioned.
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