Assignment 6.1: Discussion: Pricing a Degree
In this assignment, you will have the opportunity to explore issues of pricing and distribution for a service that you are very familiar with: MBA education. As you will also see, Africa is increasingly perceived as a growth opportunity for U.S. and European business schools (and other industries).
Procedure
1.Read the article "For B-Schools, Opportunities Rise in Africa" (Business Week, September 23, 2010).
2.Also read the country information on Ghana and Morocco, respectively. Use the CIA World Factbook or a similar source.
3.Answer the following questions:
a.Which factors might have influenced the pricing decision of CEIBS for its Ghana program? Please include quantitative information to support your comments.
b.Which opportunities and risks do you see for a highly ranked business school in offering programs at a reduced "emerging market" price level?
c.What pricing approach would you recommend? Why?
d.Which similarities and differences do you see when comparing this example of service pricing and distribution with pricing and distribution issues for tangible products?