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Strategic Analysis of Laureate Education, Inc

Updated on December 26, 2017

Introduction

Laureate Education, Inc is a conglomerate of world-class institutions of higher learning, operating in more than 25 nations around the world. The institutions which consist of approximately 70 campus-based universities, and online education programs provide both graduate and undergraduate programs for a diverse range of students around the globe. In simple terms, Laureate is a global network of higher education institutions serving students from diverse backgrounds. In particular, the network operates in the Middle East, Asia, United States of America and African region. Institutions under Laureate offer doctoral, masters, graduate and undergraduate programs in a diverse range of fields. This includes communication, technology, law, engineering, hospitality, medicine among others. All institutions under this umbrella share the same faculty, curricular, educational programs while students are encouraged to exchange opportunities. The strategies employed by the aureate Education, Inc. have propelled it to greater heights.

Generic Strategy

The generic strategy for Laureate Education, Inc can be broadly labeled as the differentiation strategy. According to Kiechel (2010), differentiation approach entails creating products which are meant for different market segments. In other words, different products and or services are promoted with a diverse level of services. This technique is important as it offers a competitive edge in the life cycle of products as well as specific markets. Furthermore, this strategy makes it possible for a company to continue receiving revenue even if other products/services or segments decline (Gamble, Thompson, Strickland, John, 2010). Those that are performing well will be able to support those whose performance is dismal.

As already stated, the different programs offered by Laureate include undergraduate programs, graduate programs, master programs, and doctoral programs. In addition, there is a diverse range of disciplines and professions which students can choose from. What is more, classes are categorized as part time, full time, and distance programs. This creates convenience for students in different contexts.

Strategic and Financial Indicators

Laureate Education, Inc Ipo Fillings in 2015 amounted to $667.0 million. During the third quarter ending September 30, 2017, the company recorded revenue amounting to $983.4 million, a 6% rise from the previous two years (IPO Monitor, 2017). The consistent increase of the company’s revenue has been attributed to a rise in enrolment intake over the period. According to the Press release by the institution, there was a rise of approximately 3% from January to September 2017 in new enrollments as well as overall enrollments. The management went on to report a positive rise in enrollment growth in its key markets (Laurete Education Inc. 2017). The strong results confirm that the enhanced strong experiences, the diversity of quality and up-to-date programs have driven the firm’s returns on a positive note.

Value Chain

Laureate Education, Inc’s generic strategic is to offer educational programs which are not only professionally oriented, but also, those that suit the interest of different students. In addition, some of the programs are those that harbor appealing employment outcomes. Furthermore, the management has collaborated with employers to make it easy for students to obtain attachment or even employment long after completing their education. They also partner with the staffs, families of the students, and faculty and the alumni who assist students not only in performing well, but also in connecting with their careers after school.

The programs offered by Laureate Education, Inc. are affordable as compared with those of other public universities. This coupled with the convenience of other online programs creates value for its clients. The institution has more than 25 campuses around the world. With the realization that some of the clients are full-time workers; hence; unable to attend regular classes, the management has incorporated online education programs for such group of people. Accordingly, they find the university programs and courses to be very much flexible and convenient as it helps them to align their schedule, as well as in pursuing a higher level of their profession. Furthermore, there is also a range of student services that are specifically designed to enable students to succeed. This includes mentoring, tutoring, career center, student and tech support that operate on a 24-hour basis among others. This strategy has worked well not only in attracting a wider group of clientele from diverse contexts but also in maintaining in enhancing its programs.

Core Competencies

Laureate has a certification in B Corporation and as Public Benefit entity. Additionally, each institution within its network runs and operates independently with the use of local leadership. Moreover, the management ensures that there is active engagement with the community. This is important in creating a positive relationship with the community, who are an important stakeholder in the company.

Certificates, courses, diplomas and Degrees offered by Laureate Education, Inc are career-focused providing opportunities to professionals who may find themselves too busy to attend regular classes. The institution has in place over 100 different degrees, certificates and specialties mainly in disciplines that are currently in high demand. All faculty and staff enrolled as lecturers or professors are people with real-life experience. The programs offered by this institution are mostly oriented towards providing applicable, practical and knowledge which can be applied in the practical and real job setting. What is more, The University is a leading edge of research and innovation particularly in the discipline of online education and success of students. This may explain why this institution has been credited for academic performance, exemplary service to veteran and military and civilian students.

Conclusion

Looking at the current strategy and level of Laureate Education, Inc.’, it is apparent that the university is in a better position to sustain itself and even perform better than what it currently does. Despite some challenges, the institution’s strength of being a reputable organization, provision of diverse and quality programs that considers value and convenience. Furthermore, the entity strives to provide affordable courses, as well as creating a positive relationship with various stakeholders including employers, staff, families, authorities, students, and alumni will continue to facilitate it in working towards achieving and maintaining its mission and goals. The university is considered an innovator, presenting flexible and compressed course schedules, a curriculum which is relevant to career and workforce and distance learning opportunity all provide unique needs to students. However, it is possible that Laureate Education, Inc can still achieve more that what it currently does. One important aspect that seems to have been ignored by this organization is the concept of marketing. If there is an extensive marketing initiative, it is certain that the performance in terms of enrolment, reputation and popularity will shore up to its advantage.

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