Business Models Universities Can Use to Compete with Ed-Tech Platforms

 The rapid growth of ed-tech platforms has significantly changed the landscape of higher education. With flexible online courses, affordable subscription models, and a broad range of subjects, ed-tech platforms like Coursera, Udemy, and Khan Academy have created new opportunities for learners and disrupted traditional university models. To remain competitive, universities must explore and adopt innovative business models that combine the best of traditional education with the flexibility and accessibility of modern ed-tech platforms.

Here are several business models universities can adopt to effectively compete with ed-tech platforms:

1. Subscription-Based Learning Models

One of the most popular business models employed by ed-tech platforms is the subscription model, where students pay a monthly or annual fee to access a wide range of courses and content. Universities can adapt this model by offering subscriptions for access to specific courses, certifications, or resources.

• Course Bundles: Universities can offer subscriptions that allow students to access multiple courses or entire programs. For example, a student could pay a subscription fee to access all online courses in a particular field, such as data science or digital marketing.
• Microcredentials and Certifications: By offering specialized certifications and badges through a subscription model, universities can appeal to professionals seeking to upskill. These credentials can be a strong alternative to traditional degrees for people who are more focused on specific skills.
• Lifelong Learning Programs: With the demand for continuous education, universities can offer a subscription service that allows alumni and working professionals to access courses and resources for lifelong learning at discounted rates.

2. Modular Learning and Microcredentials

Another key trend in ed-tech is modular learning, where learners can complete bite-sized modules of a larger program, earning microcredentials or certificates along the way. Universities can implement modular learning as a business model to attract students looking for flexible and affordable options.

• Stackable Credentials: Universities can design programs where students can take short courses that build on each other and eventually stack into a full degree. This model allows students to gain valuable credentials as they progress, while maintaining the flexibility to pause and continue their education at their own pace.
• Collaborations with Industry: By working with industries and professionals, universities can offer targeted courses that provide students with skills directly applicable to the job market. These microcredentials can also serve as a bridge for universities to collaborate with leading companies and enhance their reputation in specific fields.

3. Online and Hybrid Program Expansion

Universities can leverage their traditional educational resources to create competitive online and hybrid programs that offer students the flexibility to learn at their own pace or on their schedule. Ed-tech platforms have succeeded largely due to their accessibility, and universities can provide a similar experience while maintaining their prestige.

• Online Degrees: Universities can offer full online degree programs in addition to their on-campus offerings. By using technologies such as video lectures, discussion forums, and interactive learning tools, they can provide a rich and flexible learning experience that rivals ed-tech platforms.
• Hybrid Learning: Hybrid learning combines in-person classes with online resources. Universities can create hybrid programs for students who wish to balance work, life, and studies. These flexible learning models can be particularly attractive to adult learners, working professionals, and international students.
• Self-Paced Online Courses: Universities can offer self-paced online courses for specific subjects, allowing students to learn at their own speed. These can be positioned as more affordable and flexible alternatives to traditional degrees while still offering the academic rigor and prestige of the university.

4. Corporate Partnerships and Employer-Driven Learning

One way universities can remain competitive with ed-tech platforms is by building strong partnerships with corporations and industry players. This model ensures that students are learning skills that are directly aligned with employer needs, increasing their employability.

• Employer-Funded Education: Universities can partner with companies to provide tailored education for their employees, offering customized learning programs that focus on the skills needed for specific industries or roles. Employers can fund these programs as part of their employee development efforts, and students may receive tuition discounts or subsidies from their employers.
• Industry Collaboration for Program Design: Universities can collaborate with leading industry experts to design curricula that closely match real-world job requirements. Offering programs in fields like AI, robotics, and blockchain—areas where there is rapid technological advancement—will help universities stay competitive against ed-tech platforms offering skills-based courses.
• Work-Integrated Learning: Universities can integrate more hands-on learning opportunities through internships, apprenticeships, and co-op programs, giving students practical experience in their chosen field. This will make the university’s offering stand out compared to ed-tech platforms, which may lack these real-world applications.

5. Freemium and Low-Cost Models

While universities are traditionally expensive, adopting a freemium model for certain educational content can help them compete with the affordable pricing of ed-tech platforms. The freemium model provides students with free access to basic content, with the option to pay for premium features like advanced courses, certifications, or one-on-one tutoring.

• Free Introductory Courses: Offering free access to introductory courses or webinars can attract prospective students who may not be ready to commit to a full program. Once they experience the value, they are more likely to enroll in paid courses or degrees.
• Discounted Courses for Underrepresented Groups: Offering discounts or subsidies to underrepresented groups or students in need can help universities compete with low-cost ed-tech platforms, ensuring that education remains accessible to a wider range of people.

6. Global Expansion and International Partnerships

Ed-tech platforms have successfully expanded their reach globally, and universities can do the same by forming international partnerships and offering programs that cater to international students.

• Collaborations with International Universities: Universities can partner with global institutions to offer joint degrees, certifications, or programs that draw students from different parts of the world. These partnerships can leverage the strengths of both institutions and help universities access new markets.
• Localized Online Programs: Universities can design programs that cater to specific regions and languages, making them more accessible to students globally. Offering localized content, such as country-specific business practices or regional legal frameworks, can make the university more attractive to international students.
• Global Alumni Networks: Universities can leverage their alumni networks to promote their programs globally. By offering support, mentorship, and networking opportunities to alumni around the world, universities can create a strong sense of community that ed-tech platforms may lack.

7. Data-Driven Personalization

Universities can adopt a more personalized approach to learning by leveraging data analytics to tailor courses, resources, and support to each student’s needs. Ed-tech platforms often use algorithms to provide personalized recommendations, and universities can emulate this by using similar technologies.

• Personalized Learning Paths: Use data to recommend courses, resources, and support based on students’ academic progress and career goals. This allows students to create their own educational journey within the university framework.
• Real-Time Analytics and Feedback: Universities can use real-time analytics to track student progress and provide timely feedback or interventions. This will enhance the learning experience and improve retention rates, making universities more attractive compared to ed-tech platforms that may not offer such personalized attention.

8. Social Learning Communities

One area where ed-tech platforms excel is their ability to create social learning communities, where students interact with one another, collaborate on projects, and exchange ideas. Universities can adopt similar strategies by creating online communities where students can connect, collaborate, and engage in discussions.

• Discussion Forums and Peer Learning: Create online spaces where students can ask questions, share ideas, and learn from one another. This can enhance the learning experience and foster a sense of community, even in online programs.
• Virtual Networking Events: Organize virtual events such as career fairs, workshops, or networking sessions to connect students with industry professionals, potential employers, and fellow learners.

Conclusion

To compete with ed-tech platforms, universities need to embrace innovation and adapt to changing educational trends. By adopting business models such as subscription-based learning, modular credentials, hybrid education, and strategic partnerships, universities can remain relevant and offer value that meets the evolving needs of today’s learners. Universities can differentiate themselves by combining academic rigor with the flexibility, accessibility, and affordability that ed-tech platforms provide, while maintaining the social and real-world connections that traditional institutions offer.