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Strategic Management

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Case Study 1: Navitas vs. Kaplan

1. Navitas and Kaplan, two well-known private educational establishments, initially started their performance in different geographical regions aiming at providing a high-quality international level education to local people. While observing the performance of these two companies that became the rivals, it is appropriate to evaluate them in terms of the PARTS (players, additional value, rules of the game, tactics, and scope) model. Keeping in mind that the rivals can both cooperate and compete, it is possible to conclude that initially Navitas and Kaplan were complementary organizations that used to add value to the entire educational industry. Nevertheless, aiming to conquer the new spaces and clients, they became significant rivals. While evaluating the effectiveness and peculiarities of Navitas’ and Kaplan’s business performance, one should refer to the five key questions of the business strategy. For example, it is clearly visible that initially both organizations were targeting their local markets; however, within the time, Navitas and Kaplan directed their efforts to conquer the market of the global educational industry. These companies offer a great variety of services in the field of education all over the world. Besides, they are going to continue expanding their assets by cooperating with complementary governmental and private companies and organizations. What is more, both businesses specialize in different means of tutoring, such as stationary and online courses. While at the beginning they did not have serious reasons to compete since they both had own client bases and occupied specific location, within the time of their growth and expansion the rivalry became more prominent. Furthermore, as the experts suggest, the competition between these companies is supposed to strenghen in the near future.

2. Navitas is an Australian company that provides education with the emphasis on pre University tuition, courses of the English language, as well as numerous other fields. Navitas is known to be initially oriented at the Asian world attracting the students from China, India, Malaysia, Korea and other rapidly developing countries that show considerable demand in high qualified experts.

3. In contrast to Navitas, Kaplan is an American company, specializing in higher education either for native dwellers or for foreigners. The owner of Kaplan founded his company as an alternative for those clients who looked for additional opportunities to the already existing educational establishments of the United States. For the same purpose, by entering the Australian market, Kaplan acquired Tribeca Learning Ltd., and offered the local dwellers effective and recognized educational courses with the finance and business management emphasis. Consider the example, “Tribeca aspired to expand education to the 200 000 professionals in the accounting, real estate, mortgage broking and self-funding superannuation sectors” (Li & Habbard, 2010).

4. Navitas collaborates with different institutes that offer education services to native speakers and foreigners either visually or distantly. Furthermore, it cooperates with the Workforce and Training programs that specialize in “vocational education and recruitment” (Li & Habbard, 2010). In addition, Navitas deals with Student Recruitment, which provides occupations in the offices of the United Kingdom, China, and India (Li & Habbard, 2010)

5. Kaplan positions itself as an expert in the admissions of various academic levels, higher education provider. The company is specialiized in a wide range of activities ranging from vocational training and retraining to tutoring small kids and middle graders.

6. In order to achieve a greater success, these businesses engage other players, such as different colleges, institutes, and recruitment agencies, which all became their complementary organizations in this case. However, the competition exists not only between Kaplan and Navitas, but also between the two and other educational establishments. It depends on the range of their services. For example, while preparing students for entering the University, these companies are in rivalry with each other but are complementary with different higher educational establishments. Simultaneously, by providing various courses of higher education to certain number of students, Kaplan and Navitas also compete with those Universities whom they complement while supplying them with the new customers.

7. In order to lessen the rivalry between Kaplan and Navitas, as well as between them and other private and state educational establishments, it seems to be relevant to share the niche. For example, the scope of every college or university can be associated with a certain territory, group of population or specific direction in learning. However, most likely such strategy would lead to a full or partial monopoly. Undoubtedly, this phenomenon is highly undesirable. Therefore, it would be appropriate to work on the enhancement of the own competitiveness by setting fair and affordable prices and providing excellent additional services such as well-developed students’ infrastructure. Moreover, it is recommended for educational establishments of all types to increase international value of their diplomas and collaborate with the recruitment agencies in order to provide the young graduators with decent work opportunities.

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