MBAX9154 Digital Strategy : Environment and Experience

Digital disruption within the education sector has experienced dramatic shifts over the past two years due to COVID and the pivot to remote learning.

Analyse the competitive forces affecting the University and other higher education industry in which Deakin operates. What are the key drivers of competitive advantage in this industry? How, if at all, are these drivers changing? 
Has a strong grasp of the competitive forces and key drivers of competitive advantage and how they are changing. Demonstrates insight into what makes organisation successful in this industry and synthesises learnings from other industries. 
Deakin University operates within the university and other higher education industry in which there are a number of forces that shape the macro-environment. These critical forces are summarised in Table 1. below utilising a PESTLE analysis

Of the above, the number of foreign student enrolments is identified as one of the key forces within the industry. Travel restrictions as a result of COVID-19 have stifled international student enrolments whom usually pay higher tuition fees. This poses a threat to the industry if travel restrictions are not eased and would be classified as a critical success factor (CSF) for Deakin. CSF, as per Peppard & Ward (2016), are areas within the business that must go right in order for a business to thrive.

Another key competitive force is a shift from face to face (F2F) to online learning. According to IBIS World (2020), the university and higher education industry is set to see institutions expand their online platforms. For the most part, they will do this two ways. The first is the number of external and multi-modal (visual, auditory, writing) study options will increase, and the second is to improve the flexibility of current internal courses. The transition of the university and other higher education industry toward online learning suits Deakin university given its current reputation in this industry for providing a high-quality learning environment and experience. Online learning compound annual growth rate between 2018 and 2024 is predicted to be between 7.5 and 10.5 percent (KPMG, 2020) 

The above macro-industry drivers are making an impact in a number of ways. Education institutions are being forced to not only rapidly adapt to this changing environment to ensure the learning experience they are offering is both engaging and flexible, but they are now required demonstrate a willingness to experiment with delivery and content. The once common learning method of reading a textbook, answering summary questions, completing an assignment/exam on a unit is all but extinct.

Changes to international student physical mobility have demonstrated institutions reliance on foreign students. When international education is one of the country’s largest form of export (as it is in Australia), this is particularly important (KPMG, 2020).
There are of course a number of competitors that also operate within the university and other higher education industry. Porter’s ‘five forces’ framework (Porter, 1980) was utilised to undertake a competitor analysis.

The intensity of competitive rivalry within the industry is….
Monash, UM, US, UNSW, UQ have roughly 40% market share combined (no dominant player in this industry 
Competition not just from domestic institutions, but international due to ability to study 100% online (no F2F required) 
University reputation important (time required to build reputation can be a deterrent) 
The threat of new entrants to the industry is….
Entry barriers for online institutions are low therefore likelihood of new entrants is increased, particularly with the use of new technologies 
The risk of competition from substitute products is….
a shift from traditional degree/ diploma to micro-credentials as well as digital badges and certificates, the rise of free online learning, inhouse (large corporations) online learning, linked in learning.