Gary A. Berg, dean of extended education at California State University Channel Islands recently took a look at the University of Phoenix and commented in an interview at Inside Higher Ed

Q: Phoenix recently announced that it would begin to offer programs for traditional-age undergraduates. Should the rest of higher education be worried?

A: For the most part, no. However, third tier non-residential teaching institutions are likely to see increased competition. My guess is that the University of Phoenix must have noticed a large market opportunity to make such a major change in its policy, perhaps for students in the military and in their greatly expanding international market. Broadening its market represents a big change for the University of Phoenix, because one of its strengths has always been exploiting a niche market of first generation college and working adult students. Additionally, its pedagogical approach relies to a great extent on prior work and life experience — serving younger students complicates this effort.

...via elearningpost