Academia M&A

When I was shaving this morning, an interesting but stupid topic jumped into my mind.
So, comparing the higher education system in UK and United State, it is quite different since UK is still predominated by elite college system but US is pretty much all university style.

Then I was using using the competitive advantages (RBV) to compare the both systems. One factors determining the advantages in RBV is the economy of scale, and the economy of scale on the other end.

So, US is system seems more one the economy of scale, but theoretically, it may be able to offer the education at cheaper cost (even with the skyrocketed tuition). And on the other hand, UK is more lean to the economy of scope, with certain college only focus on certain area, to ensure providing the best quality of education.


Then I was thinking this is just like to normal business competition. Of course there are debates about the purpose of education, like government subside or not child left behind whatever. But with higher education, it is more like capitalism business that the rich and smarter will get into it but not else. Anyway, so, I assume the competition between school/college/university will be similar just like companies compete in the same fields.

so, will the competition between elite college and university just the competition between Microsoft and niche player like Adobe!? I am saying yes.

Now, here is the real question after go through this path: so, will there be two types of growth for university/college? organic or acquisition? like oracle and SAP?

We certainly don't see much acquisition between college or with university are we? but will there be.... that actually is the question.

I will say mostly are organic. At least that is the impression I had.
The only acquisition case I knew is the case in the town near by. A medical college - Medical College of Virginia MCV merged into Virginia Commonwealth University VCU. MCV definitely had better reputation than VCU, but it used this tactic to take advantage on economy of scale. But whether VCU gained the same and enjoy any economy of scope is unknown. And whether this tactic can help VCU's overall reputation is unclear either.

Well apparently I don't have much background knowledge and no detail research at all during a length of a tooth brush... But I just simply note this down and may be motivated to look into it later in my life... When my life is bored.