Next Year will be even tougher!

Question

Based on all the information out there, I suspect that the next yr's applicants will face even tougher competition than we did...

gmat_newb · Answer

what information is that? just curious how you came to this conclusion. i always thought b-school admissions are most competitive during an economic downturn, when a lot of people use that time to get their MBA. is that simply not the case or has something changed recently to affect this general trend (e.g., more international applicants)?

yogeshsheth · Answer

Could you please explain how did you arrive at such a conclusion

3underscore · Answer

weakening US financial conditions ----> Increase in people wanting 2 years out and an increase in opportunities. Weather the storm.

died4me · Answer

why are we seeing 20~30% jump on the application # this year?
Because of the downturn of US economy? I thought we hit the highest mark in US financial industry for the past couple of years

I believe the main contributing factor is the simple supply vs demand law.
As of now, there are a lot of demands for newly minted MBAs from top schools. Not necessary a shortage on the top mbas but the more demand will lead to higher salaries for finance and other industries.

The high demand eventually leads high supply = more applicants.

This will lead those who are indifferent in getting an MBA to reconsider an MBA, hoping for a handsome ROI.

curioustodd · Answer

I think a lot of demand came this year because major publications like BW and US News reported that application volumes have been down making it seem as now is the perfect time to apply to bschool (easier to get into, and economy is picking up so better pay packages compared to a few years ago)

https://www.businessweek.com/bschools/co ... _bs001.htm

because of the spike in volume this year and the associated decrease in acceptance rate, i don't think it will necessarily be tougher next year. If anything, it might scare away more potential applicants.

mba07 · Answer

What you say makes perfect sense. When the job market is bad, it is better spending time at school than in industry. But historically, application volumes have followed the same trend as the markets. In a bad market, app volumes generally go down. People, correct me if I'm wrong.

johnnyx9 · Answer

I think predicting the competitiveness or volume of next years applicants is like trying to guess what the stock market is going to do. You can make assumptions and come up with a guess, but at the end of the day you may end up scratching your head.

I think it was Pelihu that pointed out that the volume of people taking the GMAT has been flat this year while applications are up a possible 150%. What does this mean? Who knows.

gmatclb · Answer

Next year's applicants may be up because of the sub-prime mortgage market. https://lenderimplode.com/ I've heard of layoffs from these companies.

agsfaltex · Answer

The GMAT volume has only been flat domestically, internationaly the volume has grown, granted not by a huge increase like the application volumes have seen. 

One point is though is that not all GMAT test takers become applicants, the % that do are on the increase explaining the surges in app volume. More and more people want to get MBA's nowadays simpy because of the financial benefits as seen by post MBA salaries and bonus's (which are on the rise) and also to switch careers among other things. The fact is an MBA will give you an edge in the marketplace (at least as of right now) and more and more people are starting to take advantage of it. 

The relative class make-up's also suggests that the % of international students are also on the rise, which means more competition as well as lower selectivity rates.

rhyme · Answer

Dont even get me started. We are on the tipping point of a major economic crises.

OasisNYK · Answer

I agree....not good - so what do you think the job market will be like when we get out? Because last time I graduated 9/11 had recently happened and there were no jobs.

died4me · Answer

that's what I call a "Prefect Storm"
Tons of newly minted MBAs with the depression/recession like job outlook.
Nevertheless, let's not worry about something we cannot control..

rhyme · Answer

It seriously depends on what happens with the real estate market. I've been growing increasingly convinced over hte last few months that there is a significant bubble and a soft landing is no longer likely. If thats true, there will be a huge ripple effect into the economy, and I would not be surprised if things wont look good.

I'm nervous about it, but I'm not going to try and time anything... its pointless.

died4me · Answer

Oh.. by the way. Since Top 10 MBA schools didn't really increase the class size, I guess the supply won't be the factor in the job market outlook.. just the demand.

died4me · Answer

MBA Admissions: Sizzling Stats 
Numbers in MBA-dom are going sky high. First The Economic Times reports that MBA salaries are going through the roof, along with recruiting pressure at top MBA programs.

A few highlights from this article:

Average total compensation packages for last year: HBS - $186,174; Stanford - $183,000; Columbia - $169,194; Wharton $167, 607
Wall St. recruiting became so frenzied last year that top schools like Wharton began to limit the number of events big banks could host.
Schools are anticipating even higher compensation packages this year.
 Not surprisingly, considering these salaries, GMAT registration and testing volume are also heading north, promising MBA applicants another competitive year next year.   from accepted.com

pelihu · Answer

According to Alex at the BW forum, applications this year are the highest since '01-'02, and based on inquiries into his services for next fall and activity at his website (he's an admissions consultant), next year will in fact be tougher than this year.

Next Year will be even tougher!

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