Colleges & Universities

Colleges & Universities

Brief Excerpt from Industry Overview Chapter:

Institutions in this industry offer academic and professional courses and confer baccalaureate or graduate degrees. Major US-based institutions include public university systems in states such as California, New York, and Texas, and private universities such as Duke, Harvard, Johns Hopkins, and New York University; leading institutions outside the US include the universities of Cambridge and Oxford, both located in the UK, as well as the University of Tokyo in Japan, and the University of Toronto in Canada.

COMPETITIVE LANDSCAPE

Declining enrollment, caused in part by rising tuition, is holding back revenue growth at many US colleges and universities. Schools are competing more intensely for qualified applicants, and many are employing new highly targeted marketing strategies to increase yield rates — the percentage of accepted applicants who choose to attend. While institutions with large endowment funds are generally more financially secure, below-average investment returns are weakening overall purchasing power. However, many schools have increased spending from endowments to pay for student financial aid, research, and other programs.

PRODUCTS, OPERATIONS & TECHNOLOGY

Colleges and universities provide instruction leading to the granting of a degree that testifies to the student's competence. Many also provide room and board for students and a variety of other services. Some schools also operate hospitals and research facilities. In 2020-21, public institutions account for about 54% of total revenues, private nonprofit account for about 44%, and private for-profit account for about 2%.