Evaluating a Firm's External Environment - Illinois State University

M02_BARN4586_03_SE_C02.qxd 7/1/09 7:34 AM Page 29
has been the fastest growing university in the United
States virtually from its founding. 2
Competition seems to have come to the higher
education industry. And it’s not just restricted to new
entrants like the University of Phoenix. After almost two
centuries of gentle competition among universities
confined almost entirely to the athletic field, universities
and colleges now find themselves competing for
the best students with attractive financial packages,
luxurious on-campus health clubs, and state-of-the-art
computing facilities. Universities now compete to hire
the best-known, most widely published professors, who
then compete with each other for research grants from
the government and various nongovernmental organizations.
University and college development officers
compete to gain the favor of potential donors—people
who can help build a university or college’s endowment,
which, in turn, can be used to fund programs for faculty,
staff, and students.
Indeed, competition in the higher education
industry has never been more intense. University
presidents are now held responsible to the Trustees, for
the development and implementation of strategies
designed to give their schools a competitive advantage.
This is the case even though most colleges and universities
in the United States are not-for-profit organizations.
But, just because these organizations are not trying to
maximize their economic profit does not mean that they
are not competing in a very competitive industry. 3
29