According to the article, by Patrick Clark (not a known relative of Dr. A. Bruce Clark), Richard Lyons (the Dean of the University of California Berkeley’s Hass School of Business) feels that as more top MBA programs start to offer degrees online, it will “imperil the industry’s business model.” In his words, “For most business schools, students pursuing part-time and executive MBAs generate crucial revenue. Those programs, geared toward working professionals, will soon have to compete with elite online alternatives for the same population.”
Lyons believes that “A school like the University of Arizona’s Eller College of Management can compete on price against higher-ranked programs, but that might not be enough to hold on to that Phoenix-based executive—at least, if she’s good enough to get into an online program from Wharton or Stanford.” Furthermore, Lyons feels that online programs from brand-name schools like “Wharton, Stanford, and their ilk” will dispel the “down-market-online-image” of schools like “DeVry and the University of Phoenix.”
Robert Lytle, a partner in Parthenon Group’s education consultancy, feels the early losers (as the “brand-name schools” have started to go online) have been the “for-profit MBA programs” such as the aforementioned DeVry and University of Phoenix. Thus, he tells directors at schools to stop dallying and to start building online programs. In his words, “Once you get out of the top tier of schools, you’re either already online, on your way there, or dead in the water.” According to the article, when Villanova School of Business announced a new online MBA program earlier this year, Dean Patrick Maggitti said there has never been a more uncertain time in higher education.
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