Research On Competitive Strategy Of Online Education Product Of YG Company

The technical progress and development of society promote online education industry. The popularity of the Internet and mobile devices as well as the support of the government policy has brought an opportunity for the outbreak of online education. In view of the online education market prospects, the traditional of educational training institutions and big internet companies start to running online education business. The market is very competitive. However, due to the lack of Internet operating experience or educational resources, most companies are faced with the difficulty of realization. So far, the benchmarking enterprises has not appeared and the whole industry has not yet formed a mature business model, is still in the exploratory stage.YG company has both education background and IT gene, with years of experience in school enterprise cooperation, it has the natural advantage to engage in online education, so YG company plans to carry out online education business. The purpose of this paper is through the analysis of the domestic online education market and YG’s internal and external environment to determine the competitive strategy of YG’s online education business and to concrete measures to ensure the implementation of the strategy. This paper first introduces the background and the purpose of the study, then summarizes the theoretical research of competitive strategy both at home and abroad. The main theoretical basis of this paper are: Potter’s theory of competitive strategy, five forces model, PEST analysis and SWOT analysis. Through the analysis of the macro environment, industry competition environment and internal resources of YG company, the author thinks that to carry out online education business is a great opportunity and challenge for the development of YG company. YG’s competitive advantages are years of experience in school enterprise cooperation, excellent R & D capability and human resource management ability. YG’s competitive disadvantages are low visibility, and the lack of experience in online operations and promotion. Combined with the advantages, disadvantages, opportunities and threats of YG company, the author suggests choosing the focused differentiation strategy which means that YG should focus on College Students’ education and vocational education, obtain and maintain competitive advantage through quality differences, personalized service and functional innovation. To realize the strategic objectives, YG must take a series of measures on personnel, finance and system to improve the company’s competitiveness, such as team building, improving the quality of products and services, contrasting cost management system and improving operational capacity.The author hopes that this paper can solve the problem of YG company’s strategic needs, and can also provide reference for the development of other domestic online education companies.