Strategic insights into the critical success factors online for-profit educational providers: case study

The last decade has seen a dramatic growth of online educational service providers (OESPs) and a major paradigm shift from the traditional mode of instruction. Within a knowledge-based information-intensive society, or education, the internet has allowed for accessibility to convenient and affordable educational opportunities for self-improvement. Chief about these OESPs is the University of Phoenix (UOP), which older, part-time students seeking the skills vital to success in this information-intensive environment. This creation of virtual learning communities has redefined the strategic success factors that managers must operate in. The Apollo Group, Inc., established in 1976, provides higher education to a non-traditional student population through its four subsidiaries: UOP, Institute for Professional Development, The College for Financial Planning Institutes, and Western International University. As its largest subsidiary, UOP accounts for roughly 85% of the Apollo Group's revenues. This case study documents and creates a forum for discussion on the critical success factors via a traditional financial and strategic analysis of the OESP-based industry.