American Public Eduction (APEI)

TOP CONTRIBUTORS

Lawrence Gu

American Public Education, Inc. is a provider of online postsecondary education focusing on the needs of the military and public service communities. It makes money through its two main operating segments, American Military University, or AMU, and American Public University, or APU, which together constitute the American Public University System. Approximately 62% of its students serve in the United States military on active duty.^[1] As such, its revenues are highly dependent upon relations with the U.S. government.

Business Growth

APEI seeks to capitalize on the large and growing market for online education in national security, homeland security, and public safety professionals. As with their military counterparts, these individuals have unique program requirements as well as unpredictable and demanding work schedules that often prevent them from attending traditional universities.^[2] k

Trends and Forces

APEI Positions Itself in a Niche Market by Providing Education to the Military

With more than 2.2 million active and reserve military professionals in the US Armed Forces, approximately 300,000 new service members are enlisted or commissioned to replace retiring and separating members. The unpredictable nature of work schedules make it advantageous for military personnel to enroll in APEI's online learning. As an added incentive, military leaders and policies promote voluntary education programs as a way for preparation of career following military service. Even for individuals that choose not to exit immediately into career after military service, academic achievement can also result in increased rank and pay for service members. APEI seeks to capitalize on this by providing education that is particularly suited for military members.

For-Profit Educational Institutions Operate under the Watchful Eye of Intense Regulation

Because the majority of educational institutions are not-for-profit, for-profit institutional such as APEI must follow extensive regulatory requirements and could suffer severe fines and penalties such as the loss of access to federal student loans and grants should they seek not to follow the. Because a majority of revenues on a cash basis come from federal student financial aid, APEI must follow certain restrictions such as the fact that the percentage of revenues derived from each institution be less than 90%.

Competition

Corinthian competes with other not-for-profit education institutions, as well as for-profit such as:

• DeVry (DV) is a provider of educational services, providing a range of programs in business, healthcare and technology and serve students in middle school through postsecondary education, as well as accounting and finance professionals.^[3]
• Corinthian Colleges (COCO) is a for-profit post-secondary service with institutions in the United States and Canada.^[4]
• Apollo Group (APOL) is a private education service provider with educational programs and services both online and on-campus at the undergraduate, master’s and doctoral levels through its wholly owned subsidiaries such as The University of Phoenix.^[5]

References

1. ↑ APEI FY2010 10-K, Pg 1
2. ↑ APEI FY2010 10-K, Pg 5
3. ↑ DV Business Description
4. ↑ COCO Business Description
5. ↑ APOL Business Description