  The online learning tools and management also known as Learning Management
System (LMS) have been adopted by higher education as it allows convenient and
flexibility in learning process between students and instructors or tutors with
minimal cost. The adoption of online learning tools in university has allowed
users (students and instructors) to interact, share and discuss
anytime-anywhere conveniently. Many students nowadays rely on online resources
based using their mobile devices, substituting traditional learning
interactions. Universities need strategy to sustain in providing intensive
interactions and spreading word out mouth of good services through online
learning tools by focusing on niche markets and creating close relationship
with their stakeholders. The study presented in this paper analyses how
universities design best practices in adopting LMS and evaluate its current
state for future improvement. In fact, with proper strategies of LMS,
universities have opportunities to sustain their business by offering
interesting packages and to improve their services through intensive
interactions with their users. In this study, we deploy Transaction Cost
Economics (TCE) to understand the change business environment and to construct
a model for higher institution to regulate their scenario on online learning
strategies in fast changing and threatening business environment.
