In a Financial Times article, NYU Stern School of Business professor Larry Zicklin, says the days when getting an MBA costs well north of $100,000 are coming to an end.
Zicklin argues that … b-schools face an existential threat … and that they aren’t aware of the tsunami that’s about to hit them.
The era of charging $100,000 for an education is over.
Here’s why …
Ziclin asserts that:
The issue is that business schools spend an enormous amount of time and money supporting research … which drives up costs.
Students are subsidizing something that they don’t really value, and that relatively few others do either.
Research is such an expensive part of business school education that institutions are going to have to cut back on research.
On the teaching front, the days of a lecturer standing in front of just 25 students … are coming to an end, too.
Business schools are going to get killed by their best professors leaving to teach online, with students following them.
If great professors can reach 200,000 people instead of a few hundred a year, why should they stay at a business school?
And if students can learn from the very best professors online for a fraction of the cost, why not do that?
Zicklin concludes that “there’s a big opportunity for any school willing to emphasize teaching over research and cut fees.
If they can offer more value for a lower price, other institutions will have to follow.”
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For more see Zicklin’s full interview in the Financial Times and a recap of it in Business Insider
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