Corinthian Colleges (COCO)

TOP CONTRIBUTORS

Lawrence Gu

Corinthian Colleges is a for-profit post-secondary service with institutions in the United States and Canada. The company makes money through its 110,580 enrolled students, to which it operates 101 schools in 25 states and 17 schools spread out around Canada. Corinthian provides associate's, bachelors and master's degrees in healthcare, criminal justice, mechanical, trades, business and information technology. When unemployment rises, individuals tend to choose to return back to school when the labor market becomes scarce.

Business Growth

Corinthian's development is centered upon two major strategies. For its existing campuses, the company uses an integrated and centralized marketing program to create cost synergies as well as use acquisitions to expand campus size. From a second online front, the company has taken advantage of the increasing number of students electing online only status for their degrees, which provides convenience in location for both parties.^[1]

Trends and Forces

Unemployment is a Key Factor toward Student Enrollment

During times of high unemployment , the job labor market dries up as jobless rates climb. Individuals who once considered higher education but failed to commit due to a lack of job security have now more incentive to re-enter school because the opportunity cost of staying at home to find a job is now greater. As such, education institutions such as Corinthian will seek to benefit from such a rise in unemployment.

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 Corinthian 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, Corinthian 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.^[2]
• American Public Eduction (APEI) is a provider of online postsecondary education focusing on the needs of the military and public service communities.^[3]
• 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.^[4]

References

1. ↑ COCO FY2010 10-K, Pg 21
2. ↑ DV Business Description
3. ↑ APEI Business Description
4. ↑ APOL Business Description