Management Education. Is it time out or final whistle?

Admissions to management courses have dipped big time. The latest issue of the Economist indicates admissions have taken a beating in Europe and to some extent in the US;the Mecca. India has had "millions" of management students. This year many of the government quota seats (which come at 20-25%  cost of open seats)  in MBA programs across the country have not been filled. Except for the top two tiers of business schools, most do not have sufficient student strength.

The reasons are not far to seek. Globally ROI is diminishing thanks to campus placement. The average salary has taken a beating and in many countries getting placed on campus has become difficult. Apart from this universal factor majority of Indian B schools (of course there are exceptions!)
1. Have not provided value and charged a very high fee for many years, it was a case of limited seats and great demand.
2. Have faculty with very little industry experience and/or understanding of industry requirements and the university MBA programs do not build any skills, it is all theory culled from US authors and presented as books from authors who form part of the university or can influence the choice of suggested reading.
3.Have been used to demand outstripping supply to a great extent. The need to build a brand and have differentiators of value to students/employers was never even discussed.
4. Have always focussed on building great infrastructure which appreciates in value ( read real estate) and investing only as much as regulations demand in terms of human resources  or providing a better  'student experience'

To add to this
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A great number of B schools were approved by the regulatory authorities making  supply far greater than demand
Industry recognised that it was better to hire undergraduates and train them rather than take on someone who has greater expectations in terms of job profile and salary. Many have started visiting undergraduate institutes and investing in training departments.
 Students are now looking at ROI more seriously as education loans are becoming necessary. Students are also keenly looking at potential 'experience'at the school instead of just 'learning'.

Only those with a clear understanding of stakeholders needs, integrated marketing strategy, strong differentiated positioning, and long institutional horizon may survive in this consolidation/shake out. It is time to watch how management schools in India respond to market forces.  In 2010 in view of low demand (even number of those writing CAT has reduced) there has been a substantial price correction for management courses and this is just the beginning...of what ? Want to speculate?