Page 9 - Case Lab Summary

meet.

Field of Research: Business Education

INTRODUCTION

When Francois Ortalo-Magné wrote, “The business model

of business schools is under assault. At a time when the

number of MBA candidates is falling, innovation in online

technology is opening the door to new forms of learning

experiences, offered at a price much lower—and a scale

much greater—than in standard brick-and-mortar

classrooms. Much of the disruption is focused on exploiting

the multitude of new ways that overcome distance to enable

people to deliver knowledge, collaborate, and learn—from

anywhere, at any time.” He was reinforcing Rich Lyons view

that "Half of the business schools in this country (UK) could

be out of business in 10 years—or five......... many business

schools derive a large share of their revenue from part-time

and executive MBA programs. Students in these types of

programs keep their jobs (and associated earnings) during

their education, and therefore face a lower opportunity cost

than full-time MBA students. They are also often constrained

by their jobs to a limited set of schools located within an easy

commute.” He argued that “online technology changes the

geography of competition by allowing the very best business

schools to expand their reach, drawing upon top students

from any location. Gone is the local market advantage of the