B-school tuition bubble update

Business dull, 65 B-schools across India to shut down

This is what happens when the b-school market has excess capacity. ROI for students is negative, enrolment declines and, at some point, it is literally the case that the value of the land the school is built upon becomes more valuable in some alternative use.

2 Comments on “B-school tuition bubble update”

  1. srp says:

    The article says that these 65 schools (about 2% of the nation’s total) are low-end backwaters with no placement and little actual teaching. Some of the comments are quite telling about the minimal pro-forma “educations” churned out by institutions of this ilk. I’d be careful extrapolating this even to the mainstream of Indian business education, much less to the U.S. context.

  2. @mdryall says:

    You are right that one must be careful. The question is: why did these institutions appear in the first place? My speculation is as a result of the explosive demand for MBAs. As demand slows and the industry builds excess capacity, these are exactly the marginal institutions one would expect to bite the dust first. If part of a general trend, then there are implications for the US market.

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