Harvard Case - Western Governors University: 10x Vision
"Western Governors University: 10x Vision" Harvard business case study is written by William R. Kerr, Susie L. Ma. It deals with the challenges in the field of Strategy. The case study is 34 page(s) long and it was first published on : Apr 15, 2019
At Fern Fort University, we recommend that Western Governors University (WGU) adopt a comprehensive strategy to achieve its 10x vision. This strategy should focus on leveraging the university's existing strengths, particularly its online learning model and commitment to affordability, while strategically expanding into new markets and adopting innovative technologies. This strategy should be underpinned by a strong emphasis on digital transformation, strategic alliances, and corporate social responsibility, ensuring WGU remains a leader in the evolving higher education landscape.
2. Background
Western Governors University (WGU) is a non-profit online university that aims to provide affordable and accessible higher education to a diverse student population. The university faces a challenging environment characterized by increasing competition from traditional universities and other online learning providers. WGU's 10x vision aims to increase enrollment and revenue tenfold, requiring a significant shift in strategy and operations.
The main protagonists in this case study are:
- Dr. Robert M. Smith, President of WGU, who is tasked with leading the university's growth and achieving the 10x vision.
- The WGU Board of Trustees, responsible for overseeing the university's strategic direction and financial performance.
- WGU's leadership team, who will be responsible for implementing the chosen strategy and achieving the desired outcomes.
3. Analysis of the Case Study
To analyze WGU's situation, we can utilize several frameworks:
a) SWOT Analysis:
- Strengths:
- Online learning model: WGU's core competency lies in its online learning platform, offering flexibility and affordability.
- Focus on affordability: WGU's commitment to affordability attracts students seeking cost-effective education.
- Competent faculty: WGU employs experienced and qualified instructors.
- Strong reputation: WGU has established a positive reputation for quality and innovation.
- Weaknesses:
- Limited brand awareness: WGU's national reach and brand recognition require further development.
- Lack of physical presence: The absence of physical campuses may limit student engagement and community building.
- Potential for technological disruption: WGU's reliance on technology exposes it to potential disruptions and cybersecurity threats.
- Opportunities:
- Growing demand for online education: The online learning market continues to expand, presenting significant growth opportunities.
- Emerging markets: WGU can expand into new markets, particularly in developing countries with a growing need for higher education.
- Technological advancements: WGU can leverage emerging technologies like AI and machine learning to enhance its learning platform and personalize student experiences.
- Threats:
- Increased competition: WGU faces competition from traditional universities, other online learning providers, and new entrants like MOOC platforms.
- Regulatory changes: Government policies and regulations can impact the online education landscape.
- Economic downturns: Economic fluctuations can affect student enrollment and funding.
b) Porter's Five Forces:
- Threat of new entrants: High due to the low barriers to entry in the online education market.
- Bargaining power of buyers (students): High due to the increasing number of options available to students.
- Bargaining power of suppliers (faculty and technology providers): Moderate, as WGU relies on a diverse pool of suppliers.
- Threat of substitute products: High due to the availability of alternative learning options like MOOCs and bootcamps.
- Rivalry among existing competitors: High due to the increasing number of players in the online education market.
c) Value Chain Analysis:
WGU's value chain can be analyzed by examining its primary and support activities:
- Primary Activities:
- Inbound logistics: Managing the procurement of technology, curriculum materials, and other resources.
- Operations: Delivering online learning programs through its platform.
- Outbound logistics: Providing student support services and facilitating graduation.
- Marketing and sales: Promoting WGU's programs and attracting new students.
- Service: Providing ongoing support to students and alumni.
- Support Activities:
- Infrastructure: Maintaining its technology infrastructure and ensuring cybersecurity.
- Human resource management: Recruiting and retaining qualified faculty and staff.
- Technology development: Investing in research and development to enhance its learning platform.
- Procurement: Managing the procurement of necessary resources.
d) Business Model Innovation:
WGU can innovate its business model by:
- Expanding its program offerings: Introducing new degree programs and specializations aligned with emerging market demands.
- Developing micro-credentials: Offering shorter, more focused programs that cater to specific skills and career pathways.
- Partnering with employers: Collaborating with companies to develop customized training programs and provide workforce development solutions.
- Leveraging technology: Utilizing AI and machine learning to personalize learning experiences, automate administrative tasks, and enhance student engagement.
4. Recommendations
To achieve its 10x vision, WGU should implement the following recommendations:
a) Strategic Expansion:
- Market Segmentation: WGU should identify and target specific market segments with high growth potential, such as working adults, military personnel, and international students.
- Market Development: WGU should expand its reach into new geographical markets, particularly in emerging economies with a growing demand for higher education.
- Product Development: WGU should develop new degree programs and micro-credentials aligned with in-demand skills and career paths.
- Strategic Alliances: WGU should forge strategic partnerships with employers, government agencies, and other educational institutions to expand its reach and develop joint programs.
b) Digital Transformation:
- Technology Investment: WGU should invest in cutting-edge technologies like AI, machine learning, and virtual reality to enhance its learning platform and personalize student experiences.
- Data Analytics: WGU should leverage data analytics to understand student behavior, identify learning gaps, and improve program effectiveness.
- Cybersecurity: WGU should prioritize cybersecurity measures to protect its data and ensure the security of its online learning platform.
c) Corporate Social Responsibility:
- Accessibility and Affordability: WGU should continue to prioritize affordability and accessibility, ensuring that its programs remain affordable to a diverse student population.
- Community Engagement: WGU should engage with local communities and support initiatives that promote education and social mobility.
- Environmental Sustainability: WGU should adopt sustainable practices and reduce its environmental footprint.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with WGU's core competency in online learning and its mission to provide affordable and accessible higher education.
- External customers and internal clients: The recommendations address the needs of students, employers, and other stakeholders.
- Competitors: The recommendations aim to differentiate WGU from its competitors by leveraging its strengths and adopting innovative strategies.
- Attractiveness: The recommendations have the potential to generate significant returns on investment through increased enrollment, revenue growth, and enhanced brand reputation.
6. Conclusion
By implementing these recommendations, WGU can achieve its 10x vision, solidify its position as a leading provider of online education, and continue to make a positive impact on the lives of its students.
7. Discussion
Alternatives not selected:
- Mergers and Acquisitions: While M&A could be considered, it carries significant risks and might not be the most effective strategy for WGU.
- Focus on traditional brick-and-mortar campuses: This would contradict WGU's core competency in online learning and would be a significant departure from its current model.
Risks and key assumptions:
- Technology disruption: The rapid pace of technological change could render WGU's platform obsolete.
- Regulatory changes: Government policies and regulations could impact the online education landscape.
- Economic downturns: Economic fluctuations could affect student enrollment and funding.
8. Next Steps
- Develop a detailed strategic plan: This plan should outline specific goals, objectives, and timelines for implementing the recommendations.
- Allocate resources: WGU should allocate sufficient financial and human resources to support the implementation of the strategy.
- Monitor progress: WGU should regularly monitor progress towards its goals and make adjustments as needed.
Timeline:
- Year 1: Develop a strategic plan, allocate resources, and begin implementing key initiatives.
- Year 2-3: Expand into new markets, launch new programs, and enhance the learning platform.
- Year 4-5: Achieve significant growth in enrollment and revenue, solidify WGU's position as a leading provider of online education.
By adopting a comprehensive strategy that leverages its strengths, embraces innovation, and prioritizes corporate social responsibility, WGU can achieve its 10x vision and continue to transform the landscape of higher education.
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Case Description
Western Governors University (WGU) was a nonprofit institution of higher education whose online learning model served more than 100,000 students in 2019 and was scaling rapidly. President Scott Pulsipher wanted to expand WGU's reach to millions more with a plan called 10x Vision. 10x Vision called for scaling enrollment, creating new ventures to expand access to higher education that complement WGU's business model, and funding these ventures. Pulsipher believed WGU had a potential target market of 40 million people in the United States, as an increasing number of jobs required post-secondary education. How could WGU help these individuals participate in the higher education system and achieve upward mobility?
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