More and more universities are opening up online proposition of the idea, it is important to raise the question: "Online - Education can be profitable and sustainable business?" Answer this question, let us consider the model in several important facets of a and e will explore the possibility of financial subsistence. Some key parameters as the ability to supply the demand, technology and delivery process.
Enormous demand for the service, as previously discussed and therefore the availability of market players who can provide this growing demand. Thus, the existence of effective services to the proposition of a proper business model rather than declining, and select or create a set of issues. Consider the following factors to analyze the critical assessment of the economy:
- Virtual University vs traditional university (in transition)
Commodity vs. sales experience - Sales
- Availability and cost of technology
Differ in quality and delivery process -
- Cost analysis: Early vs. marginal
Virtual University vs. University of Traditional
Traditional model of a virtual online model and its extension to the current proposal to include an online university: An online education can be two different versions. Both models of economics.
It is relatively easy to start this business, but what matters is the quality and delivery process. Standard modules or applications, as this is a good venture to produce or distribute the content that is not difficult or expensive as you think. However, the target segment for the program carefully to ensure that care is known as the model, will be taken not only present but also with prestigious educational institutions, online propositions need to compete with the traditional model.
On the other hand, appear to be expanding their services to schools which will be e-Learning. This business model may not be compatible with the proposition of adopting her face is not a challenge. There is a risk of cannibalizing their existing successful business model. Both models, however, subsequent to, the reasonable needs of different target markets.
This model has already been made available and the existing and successful brands in terms of setting up a new virtual edge so that the organization can charge a premium. The model needs to be made available in a huge cost, and it only needs to be digitized is also relatively easy to generate demand for this proposition, the current traditional model riding on the back. However, the organization is still working towards this model, the differences include, but need to process.
Sales experience selling a commodity v
This organization, with 10,000 sold this year or the number of degrees that are very low (200
Article Source :- http://dianedoe14876.typepad.com/blog/2011/12/the-economics-of-online-education.html
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