Globalization has intensified the competition among private universities, making it vital for higher education institutions to examine their strategic positions by evaluating existing services, and adapting to customers’ perceptions where the initial step is defining and measuring service quality. For the University of Baguio, an initial step is the conducted qualitative research utilizing the collated responses from the exit survey forms of the graduating students from the school year 2018-2019 and the first semester of the school year 2019-2020. The grounded theory process showed that both the satisfactory and unsatisfactory overall educational experience exhibited the different dimensions of the SERVQUAL model: reliability, assurance, tangibles, empathy, and responsiveness. Research findings also showed that the provision of quality education (reliability) made most graduating students satisfied, whereas improving facilities and amenities (tangibles) was made most dissatisfied. Accordingly, an action plan reflecting the research findings through strategies that can strengthen its edge has been proposed.