Money and Finance
- The Barbarians Are At The Gate! Of Universities, Moats And Disruption! - By Aswath Damodaran
Link to: The barbarians are at the gate! Of universities, moats and disruption!In my last post, I attempted to break down the bundled product that comprises a college education into its component parts, and closed by arguing that the future of universities...
- The College-cost Calamity
WITH its leafy avenues and Gothic buildings, the University of Chicago seems a sober, solid sort of place. John D. Rockefeller, whose money built it, said it was the “best investment I ever made”. Yet Chicago and other not-for-profit American universities...
- Unlv President’s Somber Warning On Budget Cuts Moves Faculty To Tears
Found via the Mises Blog. To repeat Sir John Templeton’s 2005 prediction: “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear...
- Declining By Degree
Will America’s universities go the way of its car companies? FIFTY years ago, in the glorious age of three-martini lunches and all-smoking offices, America’s car companies were universally admired. Everybody wanted to know the secrets of their success....
- Academic Bankruptcy - By Mark C. Taylor
WITH the academic year about to begin, colleges and universities, as well as students and their parents, are facing an unprecedented financial crisis. What we’ve seen with California’s distinguished state university system — huge cutbacks in spending...
Money and Finance
Clayton Christensen: Still disruptive
Thanks to Will for passing this along. Christensen’s answer the question excerpted below is especially interesting, and echoes what John Templeton wrote in 2005: “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear as quickly in the next 30 years.”
What does this mean for universities?
Historically there has never been competition on the basis of price. Colleges would compete by adding professors, enhancing programmes or building nicer facilities. So they competed by making institutions better. This initiates retribution [from other colleges] which make things better and better. And every step adds cost. So the cost of higher education has increased faster than healthcare. And there just isn't any more space in the budget to do this. So this year you are seeing, in a fixed cost environment, that colleges need to fill all their spaces. And there are fewer people applying. So this year for the first time there is real competition on price. For online universities, like Liverpool and the University of Phoenix, if prices drop by 60% they still make money. But for the vast majority of traditional universities, if the prices fall by 10% they are bankrupt; they have no wriggle room. So I'd be very surprised if in ten years we don't see hundreds of universities in bankruptcy.
- The Barbarians Are At The Gate! Of Universities, Moats And Disruption! - By Aswath Damodaran
Link to: The barbarians are at the gate! Of universities, moats and disruption!In my last post, I attempted to break down the bundled product that comprises a college education into its component parts, and closed by arguing that the future of universities...
- The College-cost Calamity
WITH its leafy avenues and Gothic buildings, the University of Chicago seems a sober, solid sort of place. John D. Rockefeller, whose money built it, said it was the “best investment I ever made”. Yet Chicago and other not-for-profit American universities...
- Unlv President’s Somber Warning On Budget Cuts Moves Faculty To Tears
Found via the Mises Blog. To repeat Sir John Templeton’s 2005 prediction: “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear...
- Declining By Degree
Will America’s universities go the way of its car companies? FIFTY years ago, in the glorious age of three-martini lunches and all-smoking offices, America’s car companies were universally admired. Everybody wanted to know the secrets of their success....
- Academic Bankruptcy - By Mark C. Taylor
WITH the academic year about to begin, colleges and universities, as well as students and their parents, are facing an unprecedented financial crisis. What we’ve seen with California’s distinguished state university system — huge cutbacks in spending...