In 2014, SIS conducted a study for a US public university
The client was seeking for opportunities to grow and assess whether it could profit from emerging markets with its strong domestic brand
Proprietary solution
SIS was commissioned to conduct a market entry analysis –specifically focused on China- in order to assess the opportunity for the client to profit from a rapidly emerging student base in the country
The following analyses were performed: Gap analysis, comparative SWOT, radar chart, best in class marketing approach
In doing so, SIS set eight (8) parameters for qualitative and quantitative data: cost effectiveness, course offering, student profile, international partnerships, faculty, reputation, marketing campaigns and physical location
Result
As a result of the research, SIS found that China offered low market potential for the client due to a preference of Chinese students for local institutions
Local students that are looking to study at a foreign university prefer to do that abroad rather than at an extension of a US university in China
Only 30% of students desired to attend China-based US universities. Of this 30%, students from international schools and “middle class” students are most likely to apply.
As a market entry in China would require a substantial dedication of valuable resources, SIS recommended not to enter the Chinese market with on its own, under its own brand
As a result of SIS research, the client has decided not to enter the Chinese market, potentially saving the investment and opportunity cost