Low cost strategy applied to education?

Whilst perusing the BBC Business website (see previous blog) I also came across this story.  It would seem that a low cost business model has been developed for the provision of private schooling, right across the developing world.  For instance, in Pakistan 9 million out of total of 20 million children are attending such schools.

It would seem that even relatively poor parents would prefer to pay a small amount for their child’s education, rather than send them to a state school.  This is due to the reputation and quality of state schools being so poor.   This emphasises a key aspect of this OM concept – namely that quality is not absolute, but relative.  And hence it is possible to have low cost and quality.

Another aspect of this is an ethical one, revolving around what the teachers in private schools might be teaching the children.  And this is highlighted in the BBC piece.  This also considers the debate as to whether public or private provision is ‘better’.

This entry was posted in Chap 09 Quality, Chap 14 Operations strategy, Sector: Public Services & Charities and tagged , , , . Bookmark the permalink.

One Response to Low cost strategy applied to education?

  1. Hayley Russell says:

    As a current student, this topic was of great interest to me. I grew up going to public schools and while the United States education system is vastly different than that of developing nations, the notion of quality in public versus private schools is still evident. From a procurement perspective, the concept of quality being relative is important. While trying to balance the line between high quality and low cost, deciding which of the two to value more may depend on a product by product basis. For example, what is the use of the item to the overall company? Is the product strategic? Is it competitive? If a product is strategic to the overall company’s advantage, then quality may be essential and a buyer may have a willingness to pay more.


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