Page 5 - General Cases 1

When Francois

Ortalo-Magné (1)

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,” not

only was this the recognition of cataclysmic change in MBA

education provision but he was reinforcing Rich Lyons’ (2)

view that "Half of the business schools in this country 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 program”, arguing 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 regional schools—and

with it—the crucial source of revenue from part-time and

executive MBA programs.” To some extent this is also

reinforced by both Harvard Business School's Srikant M.
Datar, David A. Garvin, and Patrick G. Cullen (3) who

comment that "Increasingly, we believe, business schools
are at a crossroads and will have to take a hard look at their

value propositions," moreover, since the 2008 crisis “the