Understanding Universities in Ontario, Canada: An Industry Analysis Using Porter’s Five Forces Framework

Abstract

In analyses of higher education systems, many models and frameworks are based on governance, steering, or coordination models. Although much can be gained by such analyses, we argue that the language used in the present-day policy documents (knowledge economy, competitive position, etc.) calls for an analysis of higher education as an industry. In this paper, the university sector in Ontario’s higher education industry is analyzed by applying Michael Porter’s five forces framework defined by the following forces: the threat of new entrants, supplier power, buyer power, the threat of substitutes, and industry rivalry. Our assessment revealed that competition in Ontario’s higher education industry (university sector) is currently mixed. The findings suggest that policy-makers, the sector, and individual institutions will need to consider more seriously the impact of technology and globalization when seeking a competitive position for the Ontarian higher education system.

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