Grand Canyon Education (LOPE) leverages its physical campus to create brand power, increasing enrollments despite industry malaise and presenting students with a compelling value proposition relative to not-for-profit universities in Arizona, says Peter P. Appert, Managing Director and Senior Research Analyst at Piper Jaffray & Co.
“The key points of differentiation for Grand Canyon are the strong campus presence, a focus on degree programs that are in demand, such as health care and education, very competitive tuition pricing and a Christian affiliation, which is fairly important to a certain subsegment of the market,” Appert said.
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Appert highlights the value proposition of LOPE, saying students get smaller classes at a lower price than state institutions in Arizona and where interacting with professors will therefore be more difficult, as might be finishing the desired degree in four years.
“The marketing pitch is, Grand Canyon will give you private-school education with smaller classes, more attention from the professors, the major you want and get you out within the four years at the same price you’d pay to go to the big state institution,” Appert said. “It’s a very compelling value proposition, and that has created significant brand equity for them, which they have translated into significantly above-industry-average enrollment growth.”
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