Introduction on market analysis for GUC MBA

In the last few decades new tendency was emerged in Egypt is to go towards the
private university education rather than the government university education. This
tendency was created because of the hardness of the government university education
and its hardiness composed of the huge amount of theoretical education with low
practical education. So this trend was created because of the awareness of the
Egyptian parents about the practical education and how it is effective after graduating
for their children to get hired in outstanding companies. Based on this perception a lot of
businesses have evolved to fulfill this need, they promised with high practices and good
theoretical.
Several universities have emerged in the Egyptian market to get benefit from serving
those people with the private universities perception for example GUC, French
University and British University etc... We notice from the style of these universities that
they have studied the Egyptian market and concluded that Egyptian perception towards
the European education is very good.
GUC have got its reputation among its competitors with high quality of education, and
that didnt come by luck, but by the hard work among the internal employees and the
high experienced educated staff.
The German University in Cairo, GUC, is an Egyptian Private University founded by the
presidential decree 27/2002, according to the law number 101/1992 and its executive
regulations number 355/1996.
GUC is established in cooperation with the State Universities of Ulm and Stuttgart,
under the patronage of the Egyptian Ministry of Higher Education, the Ministry of
Science, Research and Arts, State of Baden-Wuerttemberg, Germany, and supported
by the German Academic Exchange Service (DAAD), the German Embassy in Cairo,
the Arab/German Chamber of Industry and Commerce (AHK), the Federal Ministry of
Education and Research, Germany, The State University of Tuebingen and The State
University of Mannheim.

Contains four undergrad faculties

1. The Engineering Group (Engineering and Materials Science, Information
Engineering and Technology, Media Engineering and Technology)
2. The Biological Sciences Group (Pharmacy and Biotechnology)
3. The Management Group (General Management, Technology-based
Management and Business Informatics)
4. Applied Sciences and Arts Group (Graphics Design, Multimedia Design and
Product Design).
1

In German University in Cairo a backward and forward market, and in each market we
have the demand and supply as any organization.

German university in
Cairo
GUC

Backward
market

Forward
Market

(Input Market )
Demand

Supply

(Output Market)
Demand

Supply

The most common demand and supply in the input market is

-

Land
Labor
Capital

Price, Substitutes price and Taste are the main determinants for the GUC demand in
the short term and the long term. GUC has a very well known taste which is the
Egyptian perception towards the German industry culture and education, adding to that
the intermediate price among the other competitors which give approximately the same
services. Its substitutes, which are the high institutes and other education centers, give
low reputation with nearly the same price.
But for the long run determines of GUC services demand, reputation and the amount of
researches conducted by GUC researches could add market value for the GUC which
lead to the huge increase in the demand but with fixed numbers of the students
determined by the ministry of high education which indicate to the increase of the price
of the education services.
GUC needs the land and the nature resources to build up the campus, it also needs the
labor to build and install the equipment usually are skilled labor, finally all the Manmade
from equipment to material and buildings.
2

Also there is forward market for GUC and this forward market includes demands and
supplies
Example for the demands in the forward market is the Professors, lecturers, instructors.
In the supply market there are faculties for undergrad and for post grad plus the MBA
program.

Analysis for the GUC MBA forward Market

If we take the Master of business administration (MBA) as one product from the forward
(supply market)
MBA program is designed and executed to prepare students to assume managerial
positions of increasing complexity and challenge. This is done through a curriculum and
staff that emphasize leadership, strategic thinking, global awareness and ethics
The MBA have multi majors as Strategic Management, Finance, Human Resources and
organization Behavior, Entrepreneurship and Technological Innovation, Information
Systems, International Business, Accounting and Financial Control, Marketing,
Operations Management
We will find that this product has customers (demand) as the foreigners and local
students and everyone is targeting one of the above majors.
And practically the law of demand is applied here as the price of the MBA program
increase the demand on the programs decrease and vice versa.
And the clients, GUC are usually observe the alternative, as we have near and far
alternative,
Near alternative is MBA program in any different private or local university (competitors)
with lowest price and may be same quality.
Far alternative like Mini MBA in other institutes and educational centers, also we can
find alternative in the master of management degree or even any managerial post grad
degree.
When we return back to GUC we will find that there are many complementary products
with the educational service. The most important is the transportations, the GUC offers
buss for the students and staff, not only the buss but also the food and beverage, sports
area.
GUC plays on the law of demand by making offers for the lower price for every high
scorer and even free of charge also it offers packages for the GUC staff to take the
MBA without or with half the price upon a three or two years working contracts.

Long term demand is in consideration as the internet and newspaper plays an important
role in the demand.
From the supply view the GUC try to introduce the Hi tech in the teaching field, from the
availability of computers, beamers and smart boards.

Conclusion and comments

My conclusion and comments that GUC targeting customers with advanced awareness
and middle to high level of Income who can evaluate the value of service offered and
can invest in the humans to gain more than money from this investment.

According to the market efficiency point of view, the consumer and producer surplus
could be attained. There are no externalities that the welfare will depend on and there is
no market failure discovered to offer this kind of services. The customer willingness to
pay more to this kind of services is high for a vast majority of Egyptian parents based on
the previously mentioned perception. And with this comparative price the supplier
(GUC) gain more than the cost of production which attains the producer surplus.
The group segmentation of the private universities contain the AUC, GUC, BUE, FUE in
the first segment and others come next, adding to that the low price for services that
GUC offers compared with the leader and the follower in this field, and finally the high
reputation it gained in the few last years, assuring to it a very good market even if it
increases its services prices.