Question: Argue why you agree with it or not based on decisions made (5-6 sentence) Strayer university and Capella University completed an equal merged in 2018.
Argue why you agree with it or not based on decisions made (5-6 sentence)
Strayer university and Capella University completed an equal merged in 2018. As part of the merge agreement each university is operating actively but under the the name Strategic Education (SEI). before the merger both universities had a drop in admissions (Fain, 2017). This merger of two reputable institutions is a creative way to join forces in order to become a stronger solvent organization. American Higher education is expensive compare to other developed countries. Therefore, some universities/colleges give scholarships in order to maintain high or steady enrollment. Competition among these institutions is intense. In this economy, is hard to keep cost low and continued to provided quality education. Many institutions are merging in order to keep operation going. Strayer and Capella are not the exception. Both institutions are reputable and brought to the table their strengths Strayer have 125 years of legacy and Capella counts with several online Masters and Doctoral programs for working adults (Strategic Education, 2019). Before Capella and Strayer merged in 2018 Capella acquired several other institutions. This allow Capella growth; increasing the programs offer in the Bachelor, Masters and Doctoral level (Capella, 2019). There is much controversy regarding merging. In this case, the merger is an equal merger, both institutions are solvent considering our current economy and the competitive market for higher education. Both institutions gain a great deal and still are able to operate as separate businesses keeping their identity but under a new mission and vision (SEI, 2019). According to the new website SEI, enrollment has increase significantly. This merger has place SEI in to a competitive advantage by having a 100% online higher education at affordable rate and a 125yr legacy University which provides a hybrid degrees (Forbes, 2017) In conclusion, the merge between Strayer University and Capella was a smart moved. Combining two rivals it reduces the threat of new competitors and substitutes. These two institutions expanded their markets by having capitalizing from each other strength. Capella offers several 100% online degrees, while Strayers provides hybrid courses. It gives a buyer (students) more choices of degrees, convenience of either taking online classes or a more traditional approach. SEI has more power over their suppliers because it is a much bigger institution which means a larger order of supplies. For a supplier loosing the contract with SEI means loosing a lot of money.
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