Abstract:

Most of the Business School in developing countries now face the problem of decreased demand caused mainly by negative demographic trends. At the same time, the global demand for education is increasing which makes most of the good rated business schools start to target potential students internationally. This tendency leads to increased competition for business schools in emerging markets. Potential MBA students in emerging markets are looking for good quality international MBA education, which could allow them to advance in their careers and give chances for international employment. Therefore, business schools in emerging markets have to compete not only locally but also globally for their local potential students. Competition for business schools in emerging markets with negative demographic trends is getting even more intense.

In this survey, the affinity index was used to identify the most interesting target groups for MBA programs in Russian market based on the MBA program attendance data and demographic forecasts for Russia and Moscow region. According to the MBA student-level data collected for the past 8 years at Lomonosov Moscow State University the highest affinity index refers to the 25-29 and 30-34 age groups. This means that comparing to the population size the highest share of students is being recruited from these two groups. As these two groups are the main target groups for MBA program at Moscow State University it is important to understand what would be the size of these groups in the nearest and far future and how to target them in a best way. The size of both groups according to forecasts will decrease by 2035: in 25-29 age group by 23%, in 30-35 age group by 43%.

This research answers the questions: do business school in Russia face both challenges – negative demographic trends and global competition and how to influence potential MBA students choice.

During the survey 55 MBA students and 43 MBA alumni answered the questionnaire which was aimed to identify the competitive factors influencing the students choice. It was revealed that the share of students comparing local and international programs while making choice increased from 33% in 2016 up to 77% in 2018. Most of the students see the importance of international focus in MBA education: 52% think that international skills are important for their current job and 35% think that this will be important in the future. More than a half respondents stated that their choice to stay in Russia was made because the quality of education at MSU is high and the second reason was that students don’t want to quit their jobs (43%).

These findings show that potential MBA students in Russia prefer to stay in the country. This mean that the threat of losing local students for Russian business school is rather low. However, MBA students are looking intensively for internationalization in education. This mean that to win local competition Russian MBA programs should include in their offer international modules and invitation of international professors. To overcome negative demographic trends educators need to know better their need and do the best to satisfy them.

Keywords:

MBA demand forcasts, affinity index, MBA choice influencers, education competetiveness.