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Elements of Quality Online Education cation

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Reinventing the University: The Business <strong>of</strong> <strong>Online</strong> <strong>Edu<strong>cation</strong></strong>VI.MARKETThe Maryland Higher <strong>Edu<strong>cation</strong></strong> Commission projects that the university’s stateside enrollments arelikely to triple between 2004 and 2010 [14]. This estimate seems reasonable based on UMUC’s successwith adult students and its expertise in online edu<strong>cation</strong>. As discussed earlier, one market entry point forthe university is its continuing Department <strong>of</strong> Defense contract to serve U.S. service members and theirfamilies overseas. The long-standing relationship with the military has led to opportunities in statesidelo<strong>cation</strong>s outside <strong>of</strong> Maryland, such as Ft. Gordon, Georgia, where the university <strong>of</strong>fers a cohort master’sdegree program.UMUC has a strong market base <strong>of</strong> non-traditional students residing in and around the state <strong>of</strong> Maryland.The university has articulation agreements with Maryland community colleges that contributesignificantly to this base. Non-traditional students are a fast-growing market segment and, fortunately,UMUC’s market niche. Unfortunately, this niche also happens to be the key market segment that forpr<strong>of</strong>itsare targeting. As for-pr<strong>of</strong>its move into more traditional markets—such as the MBA [15]—theirtargeted audiences may change. In the meantime, UMUC takes the competitive threat seriously because“the for-pr<strong>of</strong>its have found their hedgehog concept: they focus on being best at responding to themarketplace, providing excellent customer service, and producing earning power for their graduates”[16].The Maryland Higher <strong>Edu<strong>cation</strong></strong> Commission projects a dramatic “baby boom echo” that will have aserious impact on the state’s colleges and universities in the next decade. The nearly 30% projectedgrowth in undergraduate enrollments between 2003 and 2013 will stretch the current capacity <strong>of</strong>Maryland’s traditional institutions; this development may provide entry into a new market for UMUC ifthe traditional schools are unable to meet the demand. UMUC will be in a position to relieve some <strong>of</strong> thestress on the system and expand its market share at the same time.VII. EXTERNAL ENVIRONMENTThe external environment for UMUC has changed dramatically over the past decade. Prior to 1995,UMUC’s main competition tended to be campus-based institutions that served adult students (that is,continuing edu<strong>cation</strong> programs). According to the Sloan Consortium, 81% <strong>of</strong> institutions <strong>of</strong> higheredu<strong>cation</strong> <strong>of</strong>fer at least one online or blended course [17]. A broad range <strong>of</strong> brick-and-mortar, online, andmulti-mode institutions exist to serve non-traditional adult students. Of these, for-pr<strong>of</strong>it institutionspresent the greatest competitive threat to UMUC.As the university entered the online market, carefully selected curricula with high success potential werethe first <strong>of</strong>ferings. The administration also explored new directions in curriculum development. UMUCpartnered with the Carl von Ossietzky University <strong>of</strong> Oldenburg (Germany) in the course design,development, and delivery <strong>of</strong> a jointly–<strong>of</strong>fered online Master <strong>of</strong> Distance <strong>Edu<strong>cation</strong></strong>. This award-winningprogram draws on distinguished international faculty and the talents and strengths <strong>of</strong> both institutions.Currently, UMUC is piloting a jointly administered international marketing course <strong>of</strong>fered incollaboration with the Monterrey Institute <strong>of</strong> International Studies in Mexico. The success <strong>of</strong> this effortmay lead to other collaborative opportunities in the future with this institution as well as others withonline students.202

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