Introduction
Mount Saint Vincent University can use the Five Generic Competitive Strategy and SWOT analysis to determine its competitive advantage. According to Gürel & Tat (2017), generic competitive advantage helps an organization provide value to customers by exploiting its core competencies. Thus, the university can use a generic strategy to ensure students’ well-being by ensuring effective leadership that meets their primary needs. Furthermore, Mount may consider SWOT analysis a simple and useful framework for identifying its strengths, weaknesses, opportunities, and threats. The university can apply SWOT analysis in formulating developments, addressing the missing equipment, minimizing risks, and taking advantage of the available chances for success.
Generic Strategy Followed by Mount
Based on the Five Generic Competitive Strategy, Mount is following the differentiation to sustain its competitive advantage. According to Onorato (2017), product differentiation is a marketing strategy that allows an organization to differentiate its products from competitors. The difference could be of higher quality, better services, improve performance, etc. In this sense, differentiation has allowed the university to provide students with various courses and learning methods. For example, Mount offers online courses that meet remote learners’ needs. Mount also offers various courses and undergraduate programs that makes the university unique. As a differentiation element, tuition allows Mount to offer quality education since students can expand their knowledge.
Gürel & Tat (2017) suggest that when a company employs a differentiation strategy that focuses on its production cost and those offered in the market, it establishes a perceived value among existing customers and potential customers. For example, Mount’s online courses attract students from various regions and countries since it is flexible. Remote learners consider online courses more efficient than the classroom because it allows them to work or perform other duties while learning. While other universities charge high costs for online classes, Mount offers online programs at relatively lower costs to meet remote learners’ needs. For example, some remote learners choose online courses to relieve the burden of transport and boarding costs; therefore, Mount meets the learners’ expectations by offering cost-efficient online programs. In this way, Mount’s differentiation strategy focuses on offering value by ensuring that students access affordable and quality online courses. While other universities change online courses’ cost depending on demand, Mount maintains the cost by focusing on long-term student benefits.
Mount also uses a non-price competition differentiation approach, which allows the university to provide affordable education rather than maximize profit. For example, the university offers free tuition programs to ensure that remote and classroom students complete their courses on time. The non-price competition approach has enhanced Mount’s differentiation by maintaining students’ loyalty. Valentin (2015) suggest that a successful product differentiation builds brand loyalty among customers, gaining market share. In this case, the students perceive Mount as a quality and cost-saving university that focuses on value. Mount’s differentiation strategy covers all competitive aspects that enhance customer retention. For example, the students believe that Mount because although other universities similar courses, they may not lower the cost to meet students’ needs. Thus, online programs and free tuition have enhanced Mount’s differentiation strategy that sustains its competitive advantage.
SWOT Analysis
StrengthsThe primary strength for Mount is the graduate programs. For example, the university offers applied human nutrition, which is not available in most universities. The Department of Applied Human Nutrition offers Master’s programs in Applied Human Nutrition. The university also offers the Child and Youth Study that helps graduates develop an understanding of various issues that affect children and youth in society. While most universities do not prioritize communication studies, Mount offers Public Relations and Communication Studies, helping graduates advance their profession by developing leadership skills. The university considers Public relations and Communication studies essential in enhancing graduates’ competitive advantage in the job market since they provide leadership and managerial skills.
According to Gürel & Tat (2017), strengths are things that an organization does well to distinguish itself from competitors. In this sense, the graduates’ programs enhance Mount’s competitive advantage. Not only do the programs benefit graduates, but they also motivate the staff by helping achieve goals. For example, graduate programs, such as education, offer unique options that might not be available in most universities. The university also offers unique programs, such as Family Studies and Gerontology, that relate to real-life problems facing society. Furthermore, Women and Gender studies enhance Mount’s competitive advantage because many people are interested in addressing issues affecting our everyday lives. Therefore, the university attracts and retains students as they aspire to meet their career goals through undergoing the undergraduate programs.
Weaknesses
While Mount uses a non-price completion method, it might not achieve its business goals. The university offers relatively cheap online courses and free tuition that might lead to small profits or a significant loss—non-profit means competing by offering cheaper or free goods or services (Santos & Zanca, 2018). According to Onorato (2017), a company that offers quality goods or services at a cheaper price might not achieve its financial goals because it cannot maximize profits. In this regard, Mount may not earn enough profits to facilitate development because students acquire quality education at low costs. Onorato (2017) suggests that profit is crucial for organizational development because it boosts the capital. Therefore, an organization making low profits or incurring losses is considered uncompetitive because it may not have enough money for development and risk management.
Although the university has gained student loyalty, it might grow fast like other universities due to limited resources. Mount implemented free tuition and cheap online learning to enhance meet students’ primary needs. Other universities change prices according to their budget to ensure development and profitability. However, Mount does not realize competitors’ strategies that may increase their competitive advantage in the future. For example, universities that offer cost-efficient online programs may have enough funds to upgrade their technology and improve remote learning, attracting more customers. Conversely, Mount may remain using old technology that does not have particular features enhancing supporting remote learning. The university also does not have specific programs for staff motivation. Mount focuses on ensuring students’ well-being rather than recognizing the staff’s contribution. According to Valentin (2015), lack of employee motivation may lead to low performance. In this case, Mount’s staff may offer low-quality services to students, inhibiting their qualification competitiveness in the job market.
Opportunities
Mount has several opportunities that are driven by various concerns in the education industry. Firstly, the increasing demand for qualified individuals in the job market may influence many people to join universities. Since Mount university offers various courses, such as Child and Youth Study, Applied Human Nutrition, Public Relations, and Communication, Family Studies and Gerontology, and Women and Gender Studies, it has the opportunity to attract many learners. These courses are relevant to the job market; therefore, many students may join the university to increases their employment chances.
Another opportunity for Mount is enrolling international students. Canada is one of the top preferred countries in the world for international students. Therefore, more international students will be confident in joining the university because it has been offering high-quality education. The number of international students has been increasing significantly over recent years, showing that Mount can expand further.
Another crucial opportunity for Mount is online learning. According to Onorato (2017), online learning will continue increasing due to the trends in technology. While mount plan to enroll more international students, online learning may help achieve goals since many individuals are willing and able to access only courses. Online learning is useful for in-country and international students because it is flexible enough to allow for other duties such as work.
Threats
Competition is a crucial threat for Mount because there are over ten universities in the region. The high number of universities might prevent Mount from achieving its goals. For example, although many international students are interested in studying in Canada, they may not choose Mount because some universities are offering similar courses. Students have different preferences regarding the physical appearance and historical achievements of universities. Thus, some universities may meet more students’ preferences than Mount, reducing their competitive advantage.
Moreover, Mount is exposed to other external challenges, such as falling enrollments and student debt. A recent survey reveals that only thirty-four percent of universities and colleges met enrollment targets. Various factors, such as image and debt problems, inhibit high enrollments. The portrayal of higher education in Canada has a bias to particular communities, such as White and Asian students (Valentin, 2015). Thus, particular communities may not consider studying at Mount. Student debt may cause significant losses to the university. The socioeconomic environment may prevent many students from paying school fees, leading to losses.