Alphin1

HenryC.AlphinJr.
DrexelUniversity
March13,2010

Introduction

DukeUniversityisasuperbprivate,nonprofitinstitutionofhighereducationlocatedinDurham,
NorthCarolina.Throughbrandstrength,competitiveadvantage,andstrategicpartnerships,Duke
provesitselftimeandagainasagloballeaderinhighereducation.ForthefiscalyearendingJune30,
2009,Dukeboastedanendowmentwithamarketvalueof$4.4billion,coupledwithoneofthemost
successfulfundraisingsystemsinAmericanhighereducation(DukeUniversity,2010).Therearecloseto
140,000activeDukealumni,13,500currentstudents,3,000professors,andover33,000employees
(Duke,2010).KendrickTatum,intheOfficeoftheProvostofDukeUniversity,statesthatDukeisapart
of18privateuniversitiesthatarepeerinstitutionsservingasmembersoftheConsortiumonFinancing
HigherEducation(personalcommunication,March8,2010);thelistincludesbothpeerandaspirational
designations:Brown,Columbia,Cornell,Dartmouth,Georgetown,Harvard,JohnsHopkins,MIT,
Northwestern,Princeton,Rice,Stanford,UniversityofChicago,UniversityofPennsylvania,Universityof
Rochester,Washington(St.Louis),andYale.

BrandStrength

Duke,alongwithmanyotherinstitutionsofAmericanhighereducation,iswellknownforits
athleticteamstheNCAADivisionIBlueDevils.Thistypeofoutreachisalucrativeenterprise.Alumni
andfansofDukeAthleticsgivegenerouslythroughIronDukes,whichisaprogramunderthenonprofit
DukeAthleticsDevelopmentoffice.Ofthe$75millionDukeAthleticsendowment,81percentis
allocateddirectlytoscholarshipcosts(Duke,2010).Inbuildingadirectrapportwithstudents,the
community,andfans,Dukeisabletomanagecustomersatisfactionandretentionthroughcompelling
programs.(UniversityofWarwick,2010,Lesson1,p.2).Inaneffectivecycle,proceedstoIronDukes
providescholarshipstostudents,fundingforadvancedfacilities,andserveasasustainedtoolfor
recruitment.

Inanerawheninstitutionsofhighereducationarereceivinglessandlesspublicappropriations,
innovativecollegesanduniversitiesarefindingwaystoincreasetheirendowmentswhilecomplyingwith
governmentregulations.Dukesnonprofitstatusprovidestheuniversitywithgeneroustaxbreaksthat
furtherintegrateitwithgovernmentoversight.Accordingly,Americanhighereducationisasegmented
culture,withmanyuniversitiesoperatingwithrelativelyautonomouscollegesandprogramsunderthe
auspiceoftheuniversitybrand.Whilesuchfreedomprovidesroomforinnovation,itcomeswiththe
addedcostofrequiringselfsufficiency.Justassuperstaruniversityprofessorsareselfsufficientthrough
thereceivingofgrantsandscholarshipsforstudents,theDukeBlueDevilbrandisaprofitableenterprise
thatprovidesreturnstotherestoftheuniversity.

ThosewhoaremoreintimatewithDukeknowthatthebrandisnotsolelyfocusedonathletics.
Dukeisaglobalworldleaderinhighereducationandresearch,withadistinctcommitmentto
internationalization(Duke,2010).Whiledevelopmentisakeyinitiativeinsecuringfundsforcurrentand
futureinitiatives,Dukesacademicstandingandopportunitiesforexcellencedrawstudents,staffand
facultyfromacrosstheglobe.Inthissense,thesegmentationoftheschoolsanddisciplineswithinthe
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universityisnotproblematictotheDukebrand,asthecohesivestrivingforexcellencebringsallunits
together.

CompetitiveAdvantage

ItisimperativethattheDukeleadersunderstandthatstudents,aswellasqualitystaffand
faculty,willnotbecomeoverlyattractedto,andengagedwith,theservicesofferedandinstitutional
cultureunlesstheinstitutionisbetteratservingtheirwantsandneedsthanitscompetitors(Warwick,
2010,Lesson1,p.6).OneofthewaysthatDukestandsoutisthroughitseffortstoward
internationalization.Whilemanyinstitutionshaverecentlybegunharnessingtechnologytogainaccess
totheglobalpopulation,Dukehasbeenpreparingitselfforglobalpartnershipssincethe1950s
(Crawford,2008).Dukescompetitiveadvantageisnotmerelyitsoutwardapproachtoward
internationalization:theuniversitysleadershiphasbeenabletoreinventtheinstitutionaccordingto
theopportunitiespresentedbeforeit.Ratherthanwaitingfortherighttimetoentertheglobalmarket,
DukeUniversityassistedincreatingtheinternationalexchangeofscholarsandrecruitmentoffaculty
andstudentsfromacrosstheglobe(Crawford,2008).

HighereducationinAmericahadbeenknownasagroupofminifortresseswhichsaw
themselvesasbulwarksagainstchange(Duderstadt,2000,p.8),andthereforechangecameslowlyand
onlyasnecessary.Yet,evenascollegesanduniversitieschangetoadapttothedigitalage,many
encompassalimitedstatusofevolvementdictatedbyinadequategovernanceorfacultyresistance.As
Dr.JamesDuderstadt(2000)argues,thoseinstitutionsthatdonotembracechangeandreinvent
themselveswillbeleftbehind(p.35).WhilethetraditionalparadigmoftheAmericanuniversityis
shiftingtowardthatofknowledgeserver,Dukestraditionalparadigmofreinventingitselfplacesitat
theforefrontoftheknowledgeservermovement.Accordingly,Dukehasbeenabletotakeadvantageof
strategicwindowsbycapitalizingonnewtechnology,markets,anddistributionchannelsasitexportsits
brand,andmarketredefinition(Warwick,2010,Lesson2,p.18).Infact,whilemanyinstitutionsof
highereducationareslowlybecomingaccustomedtovirtualworldssuchasSecondLifeinlearning
modalities,DukeUniversityhastakenthesimulationbaseddiscoverytoanewlevel.DukesOpenCobalt
projectisacommunitybasedefforttobuild,deploy,anddemonstrateanewwayofsupportingdeeply
collaborativecopresence,andsimulationbaseddiscoveryacrossalargescalenetwork(OpenCobalt,
2010).Essentially,dissatisfiedwiththelimitsandproprietaryimplicationsofSecondLife,DukeVirtual
WorldGroupresearchersarebuildingacompetingvirtualworldapplicationthatlinksresearchers,
educators,studentsandothersinamannerofinteractionthatfitstheirneeds(OpenCobalt,2010).

Auniversityasknowledgeservercannotreachitsfullpotentialwithoutshiftingthetraditional
focusoftreatingconsumersasstudents,asopposedtolifelonglearners.Dukesmarketingeffortsare
quiteeffectivelargelybecauseoftheinstitutionalcultureoflongevity,whichincludesalifelongclose
bondwithalumni.Dukeembodiestheconceptofmarketingasaculturewithaneffectivebusiness
philosophythatpermeatestheentireinstitutionworkingtogetherwithmarketingasamanagement
function(Warwick,2010,Lesson1,p.6).Astrongbondwithalumniwhoarekeptapprisedofthe
developmentoftheuniversitycreatesstakeholderswhoarepartofacommunitynomatterwherethey
travel.Whilenouniversity,tomyknowledge,hasyetbeenabletoeffectivelycallallstudentsand
alumnilifelonglearners,thecamaraderiethatDukeUniversityhaswithitsalumniandsupportersis
evidenteachtimetheyarecontactedforinitiativesthatcontinuetoplaceDukeprominentlyinthe
realmofhighereducation.

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Foracademicyear(AY)200809,aperiodmarkedwithmanyeconomicchallenges,Duke
boastedover100,000donors,20,000annualfunddonoracknowledgements,3,500donorswhose
lifetimecontributionssurpassed$100,000ormore,andatotalyearlyinvestmentof$301million(Duke
OfficeofUniversityDevelopment,2009,p.2).Competitiverivalryisincreasinglyoccurringinthe
nonprofitsector,andisnotjustastapleofthecommercialsector(Warwick,2010,Lesson2,p.12).Such
supportshowsthatDukeUniversityoffersadifferentiatedproductthatisdifficulttoimitate.

StrategicPartnerships

DukeUniversityhasestablishedpartnershipsandexchangeagreementswithover300
internationalinstitutionsofhighereducation(Duke,2010).Whileeachpartnershipaffordsshortterm
benefits,suchasareciprocalexchangeprogramthataddressesthegoalsofstudentsineachinstitution,
thelongtermbenefitsentailfacultycollaborationinresearch,exchangeofpublicationsandreports,or
initiativessuchasconferences,professionaldevelopment,andoutreach.Witheachnewpartnership,
Dukeisabletodifferentiateitsnetworkofservices(Warwick,2010,Lesson2,p.11);whilenota
completebarriertoentry,Dukescompetitiveadvantagewouldtakeplentyofeffortandinitiativeto
imitate.Dukesacknowledgementandembracingofthemicromarketingenvironmentparticularlyof
foreigngovernmentbodiesandtheirpublicinstitutions,isaneffectiveapproachthatsignalsto
stakeholdersthattheuniversityisproactivelyachievingitsobjectives(Warwick,2010,Lesson2,p.12).

FortunatelyforDuke,andmostotherlargeresearchuniversities,attractingenoughconsumer
demandtomeettheleveloflaborsuppliedthroughfacultyisnotanissue.Tobesure,Dukedoesnot
havetomarketitselftofillseats;theuniversityhastopositionitselftorecruit,teach,andgraduate
individualswhowillbecomeinnovatorsintheirfield,maketheDukenameevenmoreprestigious,and
alsobethankfulenoughtogivebackasalumni.Utilizationofinternationalpartnershipsasastrategy
placesDukeinacompetitiveadvantageinrecruitingthebesttalent,andalsotobuildabondwith
lifelonglearnersthatmakesDukeaubiquitousentityintheirlives.ThisstrategyisboldbecauseDuke
electstonotmerelysetupbranchcampusesinunderservedmarketswhichisariskymodelof
exportingservicesandbrandbuttheyreduceoverallcostsbybuildingrelationshipswithestablished
entities.Forinstance,DukehaspartneredwiththegovernmentofSingaporeandtheNationalUniversity
ofSingapore(NUS)toestablishDukeNUS.Undertheagreement,NUShasretaineditsundergraduate
medicalschooltrainingpedagogy,andDukelargelythroughinvestmentfromtheSingapore
governmenthasbuiltamedicalcenterthatfitsSingaporesnationalstrategytobecomealeading
centerformedicalresearchandeducation(DukeNUS,2010).Dukeismeetingthedemandof
Singaporemedicalstudents,butitisalsofurtheringitsinternationalbrandposition,increasingits
networkofresourcesatarelativelylowcost,andassistingintheeconomicdevelopmentofahighly
developedandsuccessfulfreemarketeconomy(CIA,2010).

InJanuary22,2010,DukesFuquaSchoolofBusiness(FSB)openedacampusinKunshan,China,
whichislocatedabout40mileswestofShanghai(Duke,2010).Althoughuniversityleadershipenvisions
thegrowthoftheFSBasanetworkofcampuseslocatedaroundtheglobeconductingresearchand
providingeducationalservices(Duke,2008),partnershipsremainafocalconcernoftheinitiative.In
2008,campuseswereconsideredinIndia,Russia,Dubai,UK,andChina.Theselocationswerechosen
notonlyfortheirstatusasculturalcentersoftheworld,butalsobecauseDukeplanstopartnerwith
individuals,municipalities,andorganizationsthatcanbenefitfromandarereceptivetoexpansion
plansthatincludetheNicholasSchooloftheEnvironment,theDukeGlobalHealthInstitute,andthe
SanfordSchoolofPublicPolicy(Duke,2008).Dukefollowedthroughonthisinitiativebybuildingthe
campusinChinawithminimalenvironmentalimpact,includingLEEDcertification,afocuson
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pedestrians,theuseofnativeandindigenousplants,linkstopublictransportation,andthecapturingof
rainfallforreuse(Duke,2010).

Conclusion

DukeUniversitysvisionofinternationalizationisunlikethatofotheruniversities.Duke
effectivelyutilizespartnershipsinamannerthatpromoteslongtermfocusthroughresearch
collaboration,studentexchangeprograms,jointeffortsintheproductionofeducationalservicesthat
exportDukesbrand,andtheuseofstrategiesthatinvolvelocalandnationalgovernmentsandfosteran
investmentopportunitythatpromotessustainableeconomicdevelopment.ThestrengthofDukes
brandisinternationalinscope,anduniversityleadersusethisasacompetitiveadvantage.Accordingly,
oneofthemainreasonsthatDukehasearnedsuchstrongbrandidentityisthroughawillingnesstonot
onlywelcomechange,buttoembraceinnovation.TheOpenCobaltprojectissymbolicofDukes
innovativeapproach:dissatisfiedwiththeconstraintsofcurrentvirtualworldprograms,Dukes
researchersarefocusedoncreatingthepinnacleofresourcesnotonlytomakeinternational
collaborationeasierandmoreintuitive,buttomakecurrentlearningstrategiesevenbetter.Through
controlledgrowth,collaboration,andbrandidentity,theinternationalizationofDukeismarketdefining.
Althoughtherearerisksthatcomewiththeterritoryofinnovation,Dukesleadershiphasdiversifiedthe
portfolioofofferingswithoutsacrificingquality.WhenJamesB.Dukeenvisionedhisinstitutionas
providingeducationandpursuinginitiativesthatwouldmosthelptodevelopourresources,increase
ourwisdom,andpromotehumanhappiness(Duke,2006),hecouldonlyhavedreamedthathisvision
becontinuedsofaithfully.Withstrongsupportfromalumni,organizations,andsupporters,Duke
Universityispoisedtobeaworldleaderinhighereducationfordecadestocome.

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