Student Advantage is a company whose focus is capitalizing on the economic influence of college students.

Recognizing that they usually do not have much money, but that most of what they do have is usually disposable, Ray Sozzi, president and CEO of Student Advantage, founded the company in 1992 with the idea that he could draw students across the country into an association that would give them more clout in the marketplace.

To some extent, the idea is modeled after the American Association of Retired Persons. Members receive a card that gives them discounts of 15 to 20 percent at a variety of Big Box stores and restaurants, as well as at many smaller

“mom and pop” outlets. The company now employs approximately 450 people. Expansion has occurred primarily through mergers and acquisitions. Sozzi typically looks for companies that fit with his vision, and then acquires them. According to Todd Eichler, vice president, the new businesses are usually integrated and absorbed directly into the organization’s existing operations.

Today, the company is expanding into a new product line called “Student Advantage Cash,” which involves students, colleges, and merchants. With the new card, students will be able to do everything from using the laundry facilities in their dorms to buying pizzas at local retail outlets. Parents can add cash to the cards as needed. This new product complements many of the others that Student Advantage has launched since its inception, including Web sites that provide travel advice and academic assistance. Todd Eichler feels that because of its breadth and depth, Student Advantage has a strategic advantage in offering clients the opportunity to have a customized marketing package.

Discussion Questions 

1. Which of the different organizational structures described in Chapter 15 does Student Advantage appear to have?
2. How do you think the division of labor within Student Advantage may have changed as the company has grown?
3. Using the discussions of strategy in Chapters 15 and 16, how would you characterize the strategic approach to change adopted by Student Advantage?