Online MBA Threat to Schools, Warns Berkeley Haas Dean: MBA News

The dean of UC Berkeley Haas School of Business believes that US business schools are under threat from online MBA programs, predicting that half could be out of business within a decade – or even five years.

Dean Richard Lyons believes that the revenue from part-time and EMBA programs at less prestigious schools will be seriously diminished, as more highly-ranked business schools move to offer online MBA programs.

Part-time and EMBA programs are crucial for income at many business schools, which typically offer far lower levels of financial aid for these formats. But while typically those looking at such programs might look to local schools, increasing opportunities to get a bigger name on one’s résumé through online MBA provision means that these local schools look set to lose a good deal of their income, the Berkeley Haas dean warns.

Entry criteria for online MBA programs at top schools tend to not be too far removed from full-time requirements. Therefore, the less well-known schools will be left competing for less competitive students, which will obviously have negative consequences on reputation and the viability of their operations as a whole.