Strategy matters: strategic positioning and performance in the education services sector

The present study explored the strategic positioning behaviour of Australian educational services institutions to see whether their choice of strategy impacted their competitiveness in international markets. A sample of schools, colleges and universities, were asked which of Porter's generic positioning strategies they used. Correspondence and cluster analysis were used to examine these relationships and discriminant analysis was used to see whether there was a relationship between strategy choice and performance. The results showed institutions that lacked a coherent strategy did not perform well, highlighting the importance of educational administrators to develop clear and coherent strategies that position their offerings effectively to targeted market segments. Indeed, a failure to apply strategic principles may risk the long term sustainability of the institution. (C) 2007 John Wiley & Sons, Ltd.