Institute for Distance and Distributed Learning
Market Scan/Analysis, Pre-Assessment, Positioning and Strategic Action
May 20, 2002
Market Scan
• California Virtual University– Created 1997– University of California, California State University,
and Community and Independent Colleges– Clearinghouse for Existing Online Courses
• Western Governors’ University– Created June 1996 by Western Governor’s
Association– State Funding, Federal Funding, Gates Foundation,
and IBM– Clearinghouse for Existing American Online Degree
and Non-Degree Programs
Market Scan
• Virtual Temple– Created November 1999– Temple University – Wholly-Owned, For Profit Endeavor– To Make Temple a “Global University”
• ECornell– Created July 2000– Cornell University – Extend the Reach of Degree Programs in
Industrial and Labor Relations
Market Scan
• NYUOnline– Created November 1998– New York University– Wholly-Owned, For Profit Organization– Developing Course for Business and Other
Clients out of the University’s Curriculum
• eMBA– Create November 2000– SUNY Buffalo College of Business– Online Masters Program
Market Scan
• Fathom Consortium– Created March 2000– Columbia University, London School of
Economics, University of Chicago, New York Public Library, et al.
– Offer Corporate Training and other Continuing Education based on Existing Curriculum
– Other Specialized Lifelong Learning Courses
Market Status
• California Virtual University– STATUS: Abandoned April 1999
• Western Governors’ University– STATUS: Reconceived 2001 – Teacher Training
• Virtual Temple– STATUS: Abandoned July 2001
• ECornell– STATUS: Reorganized March 2001 – Medical and
Hospitality• NYUOnline
– STATUS: Abandoned 2001 – Invested over $20M• eMBA
– STATUS: Abandoned March 2002• Fathom Consortium
– STATUS: Reassessing Program – Invested over $25M
Market Analysis
• “Cannot be Everything to Everybody”• Current Market = Big Failures with Big
Investments• Non-Profit Companies Competing in For-Profit
Arenas• All Major Publicly Traded E-Learning
Companies Losing Millions in the B2C Space– Market Saturated– Mass Consolidation– Consumer Demands High Functionality, Low Price
• Insanity = Watching Others Fail and Following in Their Foot Steps
SWOT Analysis
• Process and Initial Feedback – Program / Initiative Assessment is a Team-
Based Project Requiring Active Dialogue from All Participants
– Seed of SWOT Analysis gathered through conversations with 6-8 team members
• Situational Analysis– Aggregate and Analyze SWOT Findings
Strengths
• Solid Production Team• VT Brand• E-Commerce Infrastructure• 24/7 Support Infrastructure• Network of World-Class Faculty• Relatively Low Overhead• Cohesive Leadership• To be completed by team…
Weaknesses
• Efficiencies of Scale• Production Model• Fragmented Customer Focus• Fragmented Product Line• Lack Content• Too Much Content Not Marketable• Alumni Association Relationship• To be completed by team…
Opportunities
• Vertical Markets• Value-added Partnering• Regional Businesses• Prospective and Current Students• Grants• Partner on Government Contracts• Enterprise Fund• To be completed by team…
Threats
• Training Centers• Most Universities have Courses Online• Publicly Traded Companies• Consortiums• Internal Initiatives• Online Credit-based Courses• To be completed by team…
E-Learning Business Models
• Selling Direct / Virtual Universities– Individual providers offer e-learning courses
directly to learners with no broker involvement
• Partnerships / Joint Ventures– Two or more partners collaborate to provide e-
learning courses with non broker involvement
• Brand Brokers– An independent broker partners with famous
name-brand educational institutions to compete based upon a recognizable credible promise
Source: Standing Stones Consulting, Business Models for Distributed Learning: 2000
E-Learning Business Models
• Mall / Aggregators Brokers– Individual institutions register their offerings in an
online “yellow pages” of e-learning courses
• Regional Consortia– A group of learning institutions, typically regionally
based, collaborate to provide learners with better learning and to share costs and services
• Channel Suppliers– Individual institutions take advantage of an existing
Web marketing channel to offer courses to a well-defined market segment
Source: Standing Stones Consulting, Business Models for Distributed Learning: 2000
Current Positioning
• VTalumNet – Selling Direct– Lifelong Learning
• Market Courses to VT Alumni• Portion of Courses Co-Branded with MindLeaders • Same Infrastructure as VTOnline
• VTOnline – Selling Direct– Non-Credit
• Currently Marketed through Mass Media• Toeholds: Sealants, Diseases, & Architecture• Portion of Courses Co-Branded with MindLeaders
Initial Market Recommendations
• We cannot be everything to everybody!• Capitalize on “low-hanging” fruit
– Maximize revenue from existing courses that are target marketable
• Align with strong industry partners, initiatives, brands, or faculty members
• Enable existing programs to become stronger players in their vertical markets*
• Partner with World-Class brands*– Nothing less than the best
• Invigorate team with Entrepreneurial spirit
Potential Market Opportunities
• Prospective and Current Students– Facilitate the Skill Development of Students
Interested in Attending, Currently Attending, or Recently Graduated
• Virginia Tech Faculty – Enable VT Faculty Members to Expand Scope of
Grant and Research Opportunities and Resources
• Enterprise Fund– Create Awareness and Clarity Regarding Value
Proposition to Faculty Members and IDDL
Potential Market Opportunities
• Masters in Information Technology– Chunk Static Content and Target Market
• Virginia Tech Centers and Institutes– Value-Added Partner– Align with Strong Markets with Need of
Knowledge Transfer between Academia and Industry Partners
– Enable an External Consortium –VBI Example
• Small Business Learning Network– Build Regional Constituency– Co-Brand: Leadership and Ethics??
Proposed Strategic Plan Process
• Market Research and Analysis• SWOT and Situational Analysis• Build “Sunflower” Model• Program / Initiative Identification, Design,
and Development• Identify Key Stakeholders and Partners
– Turn into Program / Initiative Champions– Collaborate on Strategic Plan development
• Focus and Execute• Process / Order Critical: Ready, Aim, Fire
SWOT Data CollectionSWOT Data Collection
• C. Lattimer will email everybody on initial C. Lattimer will email everybody on initial SWOT thoughtsSWOT thoughts
• Add, Subtract, or Change given your Add, Subtract, or Change given your opinions and experiencesopinions and experiences
• Anonymous InputAnonymous Input– Email – [email protected] Email – [email protected] – Deliver Envelop to Dot Eaton addressed to “C. Deliver Envelop to Dot Eaton addressed to “C.
Lattimer”Lattimer”
• Aggregate findings will be assessed and Aggregate findings will be assessed and presented to department next weekpresented to department next week
Questions or Suggestions?Questions or Suggestions?
Send Comments to: Send Comments to:
Charles LattimerCharles Lattimer
[email protected]@vt.edu
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