Book contents
- Frontmatter
- Contents
- Illustrations
- Preface
- 1 An Introduction to the Higher Education Industry
- 2 The Higher Education Business and the Business of Higher Education – Now and Then
- 3 Is Higher Education Becoming Increasingly Competitive?
- 4 The Two-Good Framework: Revenue, Mission, and Why Colleges Do What They Do
- 5 Tuition, Price Discrimination, and Financial Aid
- 6 The Place of Donations in Funding the Higher Education Industry
- 7 Endowments and Their Management: Financing the Mission
- 8 Generating Revenue from Research and Patents
- 9 Other Ways to Generate Revenue – Wherever It May Be Found: Lobbying, the World Market, and Distance Education
- 10 Advertising, Branding, and Reputation
- 11 Are Public and Nonprofit Schools “Businesslike”? Cost-Consciousness and the Choice between Higher Cost and Lower Cost Faculty
- 12 Not Quite an Ivory Tower: Schools Compete by Collaborating
- 13 Intercollegiate Athletics: Money or Mission?
- 14 Mission or Money: What Do Colleges and Universities Want from Their Athletic Coaches and Presidents?
- 15 Concluding Remarks: What Are the Public Policy Issues?
- Appendix
- References
- Index
3 - Is Higher Education Becoming Increasingly Competitive?
Published online by Cambridge University Press: 17 July 2009
- Frontmatter
- Contents
- Illustrations
- Preface
- 1 An Introduction to the Higher Education Industry
- 2 The Higher Education Business and the Business of Higher Education – Now and Then
- 3 Is Higher Education Becoming Increasingly Competitive?
- 4 The Two-Good Framework: Revenue, Mission, and Why Colleges Do What They Do
- 5 Tuition, Price Discrimination, and Financial Aid
- 6 The Place of Donations in Funding the Higher Education Industry
- 7 Endowments and Their Management: Financing the Mission
- 8 Generating Revenue from Research and Patents
- 9 Other Ways to Generate Revenue – Wherever It May Be Found: Lobbying, the World Market, and Distance Education
- 10 Advertising, Branding, and Reputation
- 11 Are Public and Nonprofit Schools “Businesslike”? Cost-Consciousness and the Choice between Higher Cost and Lower Cost Faculty
- 12 Not Quite an Ivory Tower: Schools Compete by Collaborating
- 13 Intercollegiate Athletics: Money or Mission?
- 14 Mission or Money: What Do Colleges and Universities Want from Their Athletic Coaches and Presidents?
- 15 Concluding Remarks: What Are the Public Policy Issues?
- Appendix
- References
- Index
Summary
Here we examine the changes in the industry that have spurred competition and the directions competition is taking. We take the broadest view of the whole industry, not simply the elite schools whose names are familiar to all but that educate only a few percent of all undergraduates. The goal of this chapter is to show that the higher education industry has a great deal in common with most other industries – having, for example, successful and unsuccessful organizations, with new entrants to the industry as well as exits from it, with schools borrowing money and developing credit ratings, with mergers occurring, and schools advertising and competing vigorously while collaborating when useful. The mixed ownership gives higher education a somewhat different character, but even that is by no means unique, with the hospital and nursing home industries, for example, having all three ownership forms, and other industries, such as the arts, museums, and antipoverty organizations, having at least two ownership forms in competition.
ENTRY AND EXIT OF PROVIDERS
The competitive process produces winners and losers. Some schools thrive and others falter – as in every other industry. Little recognized is that the higher education industry is very much in flux, with new schools emerging and existing schools closing, merging, and even switching ownership forms, as when a nonprofit college converts to a for-profit.
In recent decades there has been an influx of schools of all three ownership forms.
- Type
- Chapter
- Information
- Mission and MoneyUnderstanding the University, pp. 39 - 57Publisher: Cambridge University PressPrint publication year: 2008