The study sought to investigate and develop an understanding of the competitive advantages at an
Open Distance Learning (ODL) institution using the value chain analysis framework. Documents were
the main sources of data. Literature has documented the utility of value chain analysis to help
institutions determine the type of competitive advantage to pursue and how to pursue it. Two
components of the value system were identified, namely, the industry value chain and the
organisation’s internal value chain. The industry value chain comprised the value creating activities
within an organization such as course development right through to the delivery of course offerings
and related services to the learners. Five competitive forces were identified in every organization,
including distance education as determining survival in the market. An analysis of such competitive
forces was vital to reveal the organisation’s fundamental attractiveness, expose the underlying drivers
of its profitability giving an insight into how profitability would evolve in future given the possible
changes in technology, communication channels, emergence of substitutes and competitors.
Organisations had cost differentiation, and also focused on competitive advantages to pursue in order
to strengthen their position in the education market. It was against this background that a study of the
Zimbabwe Open University (ZOU) as an ODL education provider was undertaken to identify its
competitive advantage(s) in the market place as an education provider. The study revealed that ZOU
enjoyed the advantage of being the only institution located in an education hungry country with state
support that offered education through distance learning. However, competition from conventional
colleges also offering parallel ODL programmes were threatening ZOU’s supremacy in the area hence
the need to remain competitive. The study recommended that constant monitoring of the operations of
the entire institution’s units, acting pro-actively to enable the institution to remain competitive by
reducing operational costs, remain efficient and provide quality education to its customers. Further
recommendations were made on what the institution could do to enhance its competitive advantage in
ODL. The study concluded that value chain analysis framework could be used to understand the
operations of an ODL organisation better when used as a monitoring instrument. Results from the
study would inform strategic planners on the way forward to consolidate the university’s position as an
ODL education provider and to look out for new opportunities in the market.
Keywords: competitive advantage, value chain, organization, ODL, improvement, education, quality,
monitoring.
Ignatius 061
once incurred. Generally the internet has intensified the the one more appropriate for consultancy and education
competition and rivalry among post secondary services. They indicated that the value shop model had
institutions, in distance education where pressure to the potential to become inspirational when working with
enhance efficiency and effectiveness is intense. The feel strategy development for example improving quality of
and look of learning experience, conventional factors, assessment tools within education and universities. They
such as scale, skills of personnel, internal processes and also saw the educational service or competence
physical environment remain permanent sources of development as a continuous or circular process
competitive advantage. (ongoing). The four primary activities were:
In distance learning organizations many actors are (1) Problem finding
involved in the educational process. These are faculty, (2) Problem solving
course coordinators, editors, instructional designers, (3) Choice
technology specialists, academic experts, examination (4) Execution of chosen plan
developers and invigilators, technical and other (5) Control/Evaluation
administrative personnel. Though these work in distinct (6) Back to problem solving in value creation.
administrative units, inter- and intra- departmental For example: (1)Poor quality assessment instruments--
linkages are vital for the efficient and effective operation. ---------------------- (2)Set draft questions-----------(3)Train
(Woudstra and Powell, 1989). Consequently the value examiners---------- (4)Attend training------------ (5)Set draft
chain of ODL affects and is affected by others in the questions using newly acquired knowledge and skills------
value delivery system. These include publishers, ---- (6)Administer test------------ (7)-Identify further errors---
providers of authoring and development tools, enterprise ------------ (8)Train to minimize errors--------- (9)Start all
systems, portal integrators, distributors and delivery over again.
partners, government, other educational institutions and Kolb () came up with the learning cycle with three
learners as buyers of educational services. primary activities and the same number of support
Thus, the value chain framework highlights how ODL’s activities as Porter, Stabell and Fjedstad (1998). The
offerings fit into the learner’s value chain. An ODL’s three primary activities value chain competence
professional effectiveness component fits into the buyers’ development continuous cycle include: (a) identification
specific programme and organizational needs. Value of competence needs--------- (b) learning competence
chain analysis explicitly recognizes the fact that the development (study and learning at university) --------------
various activities within ODL institution were not --- (c)use of competence performance. Kolb further
independent but interdependent. Recognition of elaborated that the model could apply at different levels
interdependencies by value chain analysis is an or scales namely, individual, group and organizational.
acknowledgement of the possible increase in costs in one Value chain analysis is therefore:
unit can bring down total costs. For example, the extra • A tool for analysis to identify where vale is added
cost incurred creating or buying high quality self- in an organization.(value as defined by the students)
contained course materials might reduce total cost of • A conceptual framework for understanding
student support and overall cost as well. organizations by helping us to link inputs, processes and
Stabell and Fjeldstad (1998) identified three primary outputs with functional parts of an organization (Process
activities with specific reference to educational service or Model).
competence development as continuous circular • A way of thinking about an organisation for
processes. These are: The value chain responsible for example, what value does each activity add to overall
transformation of inputs into products, value shop which competitive advantage or performance of the
resolves or solves customer problems and value network organization? (Porter, 1985)
which links customers. They argue that when you
recognise the need for competence development such as
question paper development you need to: Purpose of the study/problem statement
• plan
• choose the way to get the knowledge Faced by stiff completion in the education market it was
• learn by attending vital that the ZOU continued to monitor its competitive
• test and practice new knowledge and advantage in order to survive. In view of the above the
competencies study sought to assess the university’s competitive
• recognise the need for new knowledge, process advantage and apply the value chain analysis framework
and start all over again. to enhance understanding of opportunities and limitations
Stabell and Fjeldstad’s value chain model comprised at the Zimbabwe Open University.
three parts. However, they felt t hat the value shop was
Ignatius 063
Regulations and
Course
Development
Module
Rsearch and Development and
Developmennt other Teaching and
Learning Materials
Course delivery or
Assessment and Tuition
Accreditation Teaching and
learning
testing, technical and support services, learner self- communication with the institution, processing and
service, tutor support academic experts/marking, publication of results, and delivery of modules for various
counseling, granting awards. programmes, assessment and marking of assignments.
(ix) Zimbabwe Council for Higher Education
(ZIMCHE), have intensified their monitoring and
ZOU’s Focus for Competitive Advantage accreditation of degree and diploma programmes to meet
minimum standards that have been set in order to ensure
that students and the country get the best service. (This
Quality Assurance: (See Figure 1) is an example of an external organisation with direct
influence on what ZOU does and can impact on quality of
(i) Quality Assurance Unit (QA) set up as an service delivered to the learners. Compliance with the
organization wide strategy. regulations will go a long way in enhancing the credibility
(ii) Making QA everyone‘s business hence every of study programmes being offered by the university as
employee and unit of the university is an active player in an ODL institution. Furthermore, this will enhance quality
establishing and maintaining quality. of the service students get. Consequently, the country will
(iii) Appointment of QA personnel in every region of get high quality manpower from its investment in higher
the university to monitor and report on quality activities education. Students will get value for their money and
and issues on a regular basis. enhance employment and promotion prospects in their
(iv) Setting up a QA Committee of the university current employment.
comprising senior management underlines the (x) Human resources have embarked on hiring
seriousness with which QA is regarded by top highly qualified academic staff with PhDs to enhance the
management. quality of academic input for the benefit of the students.
(v) Regular audits to keep up to date with quality They are also providing staff development opportunities
issues throughout the university. to others who do not have PhDs. This is a vital support
(vi) Training of all the personnel in QA in order to service which value chain analysis can help us
create university-wide awareness of the need for quality understand the role and value of human resources unit to
and what it means to the organisation. ODL.
(vii) Currently the university is working to gain ISO (xi) The Module Development Unit (MDU) has been
9001 certification before the end of 2012. This will further set up to edit, print and distribute modules to all the
enhance the university’s position in the market as an students. Its efficiency is vital to the success of all
ODL education provider. students pursuing different programmes and the success
(viii) Conducting regular students’ surveys and of students. Tutorials, assessments are based on these
evaluations of tutorials, tutors and university services for learning resources hence their timely production, their
students by the Research and Development Unit (RDU) quality in terms of content and presentation are all vital
to keep abreast with students’ views about quality of for quality learning and outcomes. The university ensures
services they receive from the university. (For example, that appropriately qualified and experienced persons are
July 2011, a students’ survey revealed their hired to prepare the curriculum and write the learning
dissatisfaction with some tutorials, punctuality of tutors, materials for the benefit of the students. Human
066 Glo. Adv. Res. J. Edu. Res. Rev.
resources have been scrutinizing the qualifications of • There is scope for expanding programmes on
everyone recruited to write modules. To complement offer;
internal processes, ZIMCHE also scrutinises the modules • The institution can run parallel programmes by
and certifies them as suitable or otherwise. Such rigour day or night;
can only help enhance quality. • Scope for international expansion;
(xii) Library and information service (LIS) have • Increasing economic stability;
acquired and continue to acquire books and electronic • Senior management’s commitment to Quality
resources to ensure that students have adequate and assurance;
appropriate resources for their studies. They hold training • A longer history of ODL in the country with state
sessions to introduce both staff and students to the latest support;
available technology in literature for research purposes. • Highly qualified personnel (Academic and Non-
LIS’s work is complemented by that of the information Academic) though inadequate;
and technology (ICT) to enable students to access more
• Now has own printing press which should make
reading and learning material online. It is however, sad
module production cheaper, quicker and an additional
that many students are still computer illiterate.
source of income;
Consequently, they cannot take advantage of the
• Has strong faculty of commerce whose business
advances in electronic literature much as they would like
acumen and programmes can be utilized to introduce
to do so. Some investment in enhancing students IT skills
business ethics in the management of the university for
would go a long way in motivating them as well as
greater efficiency and profitability;
opening them to a greater variety of learning materials.
• Hwange Declaration on ODL by SADC (August,
2012) provided an opportunity for ZOU to flourish as an
Where are the ZOU’s strengths? ODL education provider but also opening it to intense
competition as more players come into the market. This
has made seeking competitive advantage more urgent
• ZOU is the largest and only ODL institution in the
than before;
country, thus occupies a prime position as an ODL
education provider. • Customised learning resources of high quality;
• It produces own self-contained instructional • Partnership with other institutions provides ZOU
learning materials. opportunities to learn from others; and
• Has a wide geographical coverage that • Diverse programmes on offer with more
transcends political boundaries. unexploited markets and course offerings.
The positives and opportunities that ZOU enjoys are
• It has print modules that can be used in the
however, counteracted upon by negatives and threats.
remotest parts of the country.
Key among the negatives are:
• Enjoys the services of highly qualified staff.
• Technological lag (No Local Area Network (LAN)
• Has experience in ODL.
and wide Area Network (WAN);
• Has partnership with more than 52 countries
• Poor funding base;
throughout the world.
• Lack of student financial support by the state;
• Has a Quality Assurance Unit which monitors
• Staff turnover;
quality of various services of the university.
• Delays in launching new programmes;
• Recognition of the ZOU brand.
• Poor internal communication; and
• Strong belief in women empowerment.
• Generally weak resource base.
• Now has own printing press to speed up and
The weaknesses were further aggravated by threats in
lower cost of learning resources and materials
the environment which ZOU has to be pro-active about to
production.
overcome or work hard to overcome. These included:
• Intense competition from international ODL
There are opportunities to be exploited institutions;
• Market negative publicity;
• Situation in a country where the population is • Parallel programmes by conventional institutions
hungry for and values education; of higher learning;
• A wide student base complemented by opening • Limited number of highly qualified academic staff
the boarders when the country became a signatory of the such as professors;
World Trade Organisation (WTO), which opened the ZOU • Lack of user access to computer learning
programmes to the entire world; facilities.
Ignatius 067
Manageme
nt and
Faculty
Decisions
Quality Programme
Control, and
Research Learning
and STUDENTS Materials
Developme Developme
nt nt
Tuition and
Assessment
PLAN the
improvemee
nt and Data
Collection
ACT to
CHECK the
susstain
results of
gains and
improvemen
continue
t for lessons
improvemen
learned
t
• Misconceptions about ODL as a provider of • Poor decisions or policies such as tuition fee
quality education. paying arrangements.
• Lack of creativity in responding to threats and • Absence of/or weak business strategies such as
reduce weaknesses. market assessment of consumer demands on a
• Failure to capitalise on ODL to support continuous basis.
convenience (work and family friendly, high quality • Failure to monitor and rationalize staff level in
learning, customization and lower cost.) response to changes in student numbers. This in some
• Developments in information and communication cases maintaining high staff levels for very small student
technology (ICT) and proliferation of internet and online numbers at high cost and very little contribution to
learning. university. Rationalisation of regional structures could go
068 Glo. Adv. Res. J. Edu. Res. Rev.