University of Phoenix Strategic Enrollment Plan and Analysis

Company Background

Since its founding in the early 1970s, the University of Phoenix (UOP) has become not only the most successful for-profit educational institution in the United States, but has produced millions of graduates to date. Its success has much to do with its commitment to a strong enrollment strategy that treats students accessibly and allows them to quickly and efficiently attain degree certifications to advance their academic careers. However, UOP's success has spurred many competitors to enter the market since the mid-1980s.

Competitors have sprouted up around UOP since the 1980s to compete for its target market of adult students. Specific niche players such as ITT Technical Institute have begun to rival it for a specific segment of the population; however, direct competitors remain the greatest concern for UOP. Strayer University, which was established in the 1980s, has become a powerful rival for students as it has expanded its online offerings. Beyond direct competitors, many different universities have also begun their own online degree and accreditation programs.

As competition increases within this arena, a comprehensive strategic enrollment plan for UOP must be devised. A revision of its current model and the establishment of long-term goals will need to be systematically re-examined. The following analysis comprehensively details a new vision and long-term strategy plan for UOP to engage its next generation of core students and expand its current operations to maintain long-term enrollment growth. The purpose of this analysis is to detail the vision, mission, and values of UOP as it pursues growth among the next generation of students. UOP must not only adapt its value proposition to meet technological and educational requirements, but also understand the environmental factors that will affect its success.

The University of Phoenix (UOP) is a for-profit educational institution that specializes in adult education. UOP has campuses throughout the United States, Canada, Mexico, and Puerto Rico. Since the early 1970s, founder John Sperling began testing mechanisms and modules for delivering strong educational programs to adult learners. The focus of his research resulted in an educational process designed to teach adults in ways that complemented their experience and current professional responsibilities. UOP's concept was straightforward: to provide an environment where adults could receive the specialized training and attention they need to be competitive and successful in a college setting. Sperling believed that adult students were often "invisible" on traditional college campuses and were treated as second-class citizens.

In 1989, UOP became recognized as the first university in the United States to offer coursework online. As of October 2006, UOP had an estimated 300,000 students enrolled both on campuses and online. UOP is regionally accredited based upon its campus locations and is also accredited by the Higher Learning Commission; it is a member of the North Central Association of Colleges and Schools. Over the past decade, UOP expanded its degree offerings from undergraduate to graduate-level certifications. It offers a business degree program accredited by the Association of Collegiate Business Schools and Programs (ACBSP). Its Bachelor of Science in Nursing and Master of Science in Nursing programs are both accredited by the Commission on Collegiate Nursing Education (CCNE). UOP also offers accredited master's programs in counseling and counseling mental health. In general, UOP has grown at an astounding rate, with higher enrollment than ever before. Its industry-leading online technology and campus locations have allowed it to mature at an exceptionally fast pace.

UOP offers three general forms of educational programs: ground, online, and FlexNet. Its ground program is similar to the traditional college experience and takes place at college campuses around the country. Classes are normally five to six weeks long, and students take classes on a year-round basis. Credits are accrued much like those at a traditional college. For most students, classes meet once a week for sessions of up to four hours. UOP employs a unique feature called "learning teams," which promotes greater collaboration between classmates and leverages the extensive professional experience of adult learners to reinforce classroom lessons.

UOP's online program has grown significantly over the past five years and now accounts for the majority of its student enrollment. The widespread availability of broadband internet access has become one of the foundations of UOP's expansion plan. Online students attend virtual classrooms via a web-based interface known as OLS3. Online classes offer students considerably more flexibility while maintaining the same requirements as ground-level classes, including participation for at least four days per week in five- to six-week course intervals. The entire educational curriculum is structured around the completion of 24 units within 40 weeks of school time — roughly equivalent in duration to a traditional four-year college experience.

The FlexNet model, which functions as a hybrid between the ground and online formats, has become less commonly used at UOP. FlexNet classes are six weeks in length, and students meet both in person and online. FlexNet has declined in popularity due to greater internet access, and as a result, it is slowly being phased out of UOP's program offerings.

UOP's enrollment has steadily increased since its inception and is expected to continue growing. As an educational institution, it has encountered some controversies but appears to have maintained and extended its lead within the field. The following analysis further clarifies UOP's strategy for the future competitive landscape.