This publication discusses the new educational environment of global competition between and among public and private higher education institutions, as well as new corporate providers of educational services, and how it will affect campus activities and board of trustee decision-making processes. The report notes the many powerful external forces work already shaping the challenges, opportunities, and programs of colleges and universities. These include (1) new student demographics (unprecedented numbers of traditional age college students; larger pools of minority high school graduates; dramatic variations among regions and states; and continued demand from adults students, especially for technology-based education); (2) changing labor markets that demand new skills (ability to learn, communicate, and adapt, as well as a good work ethic and personal motivation); (3) emergence of the Internet and associated information technologies, which will place higher education's competitive environment in a global context; (4) new providers of postsecondary education and training who challenge the market share of traditional colleges and universities; (5) higher education customers, accustomed to high standards from American business, who expect improved service from colleges and universities; and (6) intensive competition and a changing public policy context which will exacerbate cost, price, and productivity measures. Boxed case material highlights the text. (Contains 19 references.) (SM)