Introduction

Development and introduction of business and entrepreneurship program in the Islamic University of Surabaya in Indonesia would be a transformation process for the university, market and an opportunity for the undergraduate students seeking to enroll in the course to tap the opportunities in the business world. In comparison to University of Riau in Indonesia which offers the Business and Entrepreneurship programs for undergraduate for a tuition fee of $550 per semester (Jobber, 2012). Given the increased demand of the course in the business industry, market and global environment, the University of Riau is seeking assistance from the Suda Group which is a Tokyo based education training provider and which offers solutions to the business challenge being experience today on how to introduce the course, the pricing strategy to use and value for customer in providing the service. The research involves the role of SUDA Group in encouraging the Islamic University of Surabaya to adopt Business and Entrepreneurship programs of undergraduate through appropriate pricing strategy and customer value.

Pricing strategy

The Islamic University of Surabaya is an Indonesian university of low ranking in the country. The university does not Business and Entrepreneurship Programs for the undergraduate course. Given the fact that most university with a high ranking are offering the course for the undergraduates at a high cost that is unaffordable for most students in the country, it is an opportunity for the university to introduce the course and charge average tuition fees which are accommodative for the students and relatives (Annet, 2011). Pricing strategy would be the appropriate approach for the university to use in order to attract many students from other universities and the country in large those who are in need of the course (Kumar, et al. 2010).  The average fees for the course shall be determined based on the average cost of the course from the other various high ranking universities. In addition, it would be appropriate to collect opinions from the students and the management on the appropriate course charge that they would expect the students enrolling for the course to start paying. The collected information in regard to the course charge would be compared with other university charges, the course charge for other courses and the students’ opinions to come up with the average program charge that is appropriate for all.

The price strategy for SUDA group would depend upon various factors such as the demand and supply in the Indonesian market, university profit maximization and the value based factors. Given the increased demand of the Business and entrepreneurial skills in the Indonesian market and the globe, there is need for the Islamic University of Surabaya to exploit this opportunity and introduce the program for the undergraduate students. Most university of high ranking in Indonesia are currently charging a tuition fee for the program at $550 and above per semester (Bennett, 2009).  Prior to setting the appropriate charge for the course, it would be important for the SUDA Group to understand how easy it is for other universities offering the course to drive the prices up, it is important to understand how the number of students to be enrolled might bring the charges for the course down and the competitive rivalry in the high education sector. Moreover, it is important for the group to understand the threat of the substitution and of new entry in the process of offering the course in the university.

After considering all these factors, it would be appropriate for the SUDA Group to come up with an average program charge that would increase profit for the university, would have the power to make the students to switch from other courses to the course or other universities to the Islamic University of Surabaya and the charge should put into consideration the competitive rivalry (Machado, 2011). Based on the other courses charges it would be important to put into consideration the charges of the other program in order to come up with standard course charge for the course. Given other low ranking universities in Indonesia which do not offer the business and entrepreneur programs might also be willing to introduce it would be appropriate to set a course charge of about $400 per semester (Jones, 2015). The Business and Entrepreneur program charge according to SUDA Group is neither too low nor high and it may be of great assistance to the Islamic University of Surabaya in Indonesia because it would be in position to serve the business market and the high demand of the business skills in the global market that has become competitive.

Value to customer

By SUDA Group introducing the Business and Entrepreneurial program at an optimal price in the Islamic University of Surabaya, it would have succeeded in providing a series of self-efficacy, engagement and problem solving course that would enable greater goal alignment and productivity of the workforce in Asia. The reason for introducing this course in the university is to eliminate the gap of knowledge existing within the university as far as the business courses are concerned (Defoe, 2014). The university shall view our services as a necessity because with the introduction of the program in the university, the university shall be in position to offer world class practices in training and education provision. The provision of the program would be tailored solution which would meet individual, corportate and business needs in the current and in the future. In conclusion, the fundamental aspect for all businesses today is to become competitive in the global market. Introduction of the course in the university would be an effective strategy of integrating and empowering the local workforce.

References

Annet, A.(2011). Assessing the Balance of Power in a Business Situation: Porters Five Business Model. Indonesia university press.

Bennett, M.(2009) .Stages of Intercultural Sensitivity: Purpose and Need. Oxford University Press.