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Prosperous Business Models for Higher Education

Higher education is facing a changing competitive landscape, affecting every college and university in America. Institutions are being forced to evaluate their business models, struggling to match revenues with expenditures, while simultaneously coping with lower net revenue per student, rising labor costs, evolving consumer behaviors, and shifting student demographics.

The data says it all—higher education will be the next industry to experience a hard fall, with many failures and victors.  It is not immune from historical events that have shaped other industries such as the publishing, retail automotive, steel, and music industries.  Over the past six years, the total market has contracted 12 percent, with enrollment dropping from 21 million to 18.3 million students. Only 34 percent of the institutions met their fall 2017 enrollment targets.

Adapting to these changing consumer behaviors and this competitive environment will take creativity and innovation.  Cost cutting alone will not be enough to forge long term prosperous business models.   Institutions will need to focus on revenue growth and diversification beyond their current programs, lowering delivery costs will be required, and technology will continue to play an increasing role in meeting the needs of students and shaping the economic models of institutions.

AGB Institutional Strategies focuses on issues affecting the fundamental economic models and competitive positions of colleges and universities.  Our work involves a combination of revenue growth and diversification strategies, low delivery costs, addressing outdated operating rhythms, and financial modeling for future prosperity.

The larger the financial challenge, the greater the need will be to rely upon inventiveness and innovation to forge a sustainable business model and reaching prosperity.  AGB Institutional Strategies has the experience to address these comprehensive changes for its members, and we stand with them delivering implementation services and support.