Many business schools around the world are suffering right now - the unprecedented hyper-growth of students obtaining MBA degrees has stalled. What was once the most popular graduate degree in the United States is slipping out of the spotlight, and many schools are doing what they can to cover the loss.
In recent years, many schools have been introducing new specialized master's degree programs to fill their deficits and cater to an ever-expanding market. While these programs are typically more rigorous than traditional MBA degrees, they also provide a host of benefits.
Times have been tough for many business schools lately. Rochester University's Simon School of Business recently slashed the cost of their two-year MBA program by 14 per cent. Conversely, over half of the top 25 business schools have added specialized master's programs within the last three years. The shift toward non-traditional graduate degrees is forecasted to gain even more momentum within the next few years.
Specialized master's degrees are popping up in a variety of niches: finance, marketing, business analytics, big data, and supply chain management are examples of the most popular subjects of study. Approximately one fifth of business students worldwide will pursue these new types of degrees, according to the Graduate Management Admission Council.
When compared to the traditional MBA, most of these programs appeal to recent undergrads as a way to "jumpstart" their career and stand out from the crowd, especially if they majored in a non-business degree program like Liberal Arts or Engineering. Specialized master's degrees typically cost much less than an MBA and only take a year or less to complete. The GMAT or GRE is required in most programs, but many do not require previous significant work experience.
This is an opportunistic path for students faced with circumstances that force them to begin their careers prematurely. Businesses favor those with specialized master's degrees, as the student will typically be able to begin work quickly and with little training. The door to obtaining a formal MBA later in a student's career remains open.
Mid-tier universities have suffered the most from the decline of MBA applicants, and have also seen the greatest increase in new master's degree programs. Unfortunately, some of these programs have been poorly designed due to financial and external pressures. Even though specialized programs cost less than MBAs, they are still a significant investment that require a bit of research beforehand.
The business schools with the most successful specialized master's degree programs have taken adequate time to prepare and develop their courses before offering them to the public. Look for schools that have demonstrated consideration for the long-term success of their students. Schools that offer career placement will typically be the best ones to choose, as they have formed a plan to ensure that educational goals are met.
While this trend is predicted to continue to grow, specialized master's degrees are not anticipated to eliminate the need for MBA graduates. As long as business students steer clear of poorly-designed courses, specialized degrees offer many benefits.