An Economical Analysis Of The Feasibilityof QDIAE Qindao College

Through analysis on the status-quo of higher education in China, the report drew the conclusion that if China wants to develop from a nation with a huge population into a strong nation with rich human resources and to realize sustainable development, China must vigorously develop higher education. There is a huge demand for higher education in China, while limited fiscal input into this field resulted in unsatisfied demand for higher education by a great number of people. The state encourages private investment in education, which provides a good environment for private higher education institutes. By applying "Diamond Theory" put forward by the American strategist Michael Porter in his famous book "Competitive Strategy", the report analyzed reasons why private higher education has achieved vigorous development since its re-emergence in the 1980s. The analysis covers four aspects, respectively the factor conditions, the demand conditions, related and supporting industries and industry strategy, structure and competition. Qingdao Institute of Architecture and Engineering (QDIAE), Qindao College, the Independent College of QDIAE, is jointly established by QDIAE and Qingdao Huaqiao Institute of Technology. Qindao College not only faces a favorable macro environment for private higher education institutes, but proves feasible through the following analysis: supply-demand analysis, competitor analysis, technical analysis, economic benefits analysis and social benefits analysis. The feasibility of Qindao Project was examined and proved through the above analysis.