Competing in the 21st Century Higher Education Sector

The UK Higher Education sector has an excellent record of successfully competing in a global market. A Universities UK report by Brian Ramsden (Patterns of higher education institutions in the UK, 2008) states that the number of UK institutions with very large numbers of students from outside the UK has grown significantly over recent years: in 2001/02 there were 3 UK HEIs with more than 5,000 students from outside the UK, this number had risen to 14 by 2006/07. The same report states that income from international students in 2006/07 was £1.7 billion.

There is increasing competition in attracting international (non-EU) students however, and the UK cannot afford to rest on its laurels. Challenges to the ongoing competitiveness of the UK include:

Delivery in English

Universities in countries where English is not the first language deliver a variety of courses in English. The development of the Bologna Process amongst signatory countries has had an effect on competition with institutions attempting to carve out competitive advantage in order to increase the size of their catchments, in some cases by offering courses taught completely, from entry, in English. (Wilkinson, Bob (2005) 'Where is English Taking Universities?', The Guardian, 18 March).

Sweden, Netherlands, Finland and Denmark have offered several courses in English for some time but Germany, Poland, Turkey and the Czech Republic are increasing the number of courses, delivered in English, that they offer. OECD, Education at a Glance 2007.

Funding and Fees

The impact of government funding and tuition fees and the variations on this between countries. Lower fees are charged in other countries - in parts of Germany for instance there are no tuition fees payable for undergraduate study. The UK is a very expensive place for students to study - due to a combination of cost of living and fees - the financial pain is minimised somewhat by the length of courses (i.e. shorter courses in some cases). It is widely recognised, however, that the UK offers a, "premium product for a premium price" (The Bologna Process and the UK's international student market, HEPI paper by James Cemmell and Bahram Bekhradnia, 22 May 2008). International students appear willing to pay this premium price currently but there is no guarantee that, as a result of economic and other factors, this will continue to be the case.

As a paying customer, there are also increased expectations from students and a growing recognition among institutions of the importance of the student experience.

Quality and Comparability

As other markets increase the quality of their higher education products, prospective students are opting to stay in their home countries, for example this has happened to an extent in the Indian and Chinese higher education markets as they flourish. As a traditional undergraduate/masters model is rolled out over a wider area this will dilute the advantage to the UK of having a reasonably specialist and scarce product.

Demographic Change

As domestic demographic declines impact on demand for university education for home students in European partner countries this will encourage the pursuit of international students to make up any recruitment shortfalls.

Restrictions on Entry to the UK

Visa restrictions and increased fees have a potential impact on take up of places by prospective international students, particularly if it is perceived that other countries may be offering a similar quality of education, more cheaply or with fewer bureaucratic barriers.

Perception of the UK System

The UK has gained from traditionally being able to offer the benefit to students of completing their undergraduate degrees in three years rather than five. However this has also resulted in a perception that demands on students in the UK are less than in other countries - teacher contact time, length of private study required - and there is concern that competitors are questioning overall quality and branding this approach as 'study light' (The Bologna Process and the UK's international student market, HEPI paper by James Cemmell and Bahram Bekhradnia, 22 May 2008).

It is also reported that other countries are painting the UK as 'aloof' from the Bologna Process and not committing to the Process to the same extent as European counterparts. This is partly as a result of the UK not having to make such major changes to their educational structure in order to comply with the Bologna Process. This is an incorrect perception and it is vital for the future success of the UK Higher Education sector in a 'Bologna-branded' environment that it is challenged. The problem could be, "exacerbated if European students who have previously travelled to study in the UK stay at home in their Bologna-boosted institutions". (Times Higher Education Leader: Premium brand at risk, 2 October 2008).

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