Research On The Competitive Strategy Of New Way Cram School

Recently,with the great development in China and the improvement of people's life,education has become an increasingly important part in daily life,showing the jump statistics in educational investment of individuals.The rising demands lead to the increase of both public school and cram school.Big cram schools start to build branches,and newcomers also want a try.New Way have established for 6 years,it obtained the profits the second year,and all the organizations got lots of profits owing to the advantages of the environment,but it didn't discovered profits it obtained was not because the organization possessed the competitive advantage yet.As for the market's demand exceeded dramatically,the huge numbers of students caused every school could get profit here more or less.In this premise,New Way didn't doubt that whether own organizational consequence was right and the position of industry was substantial,it didn't know the features of customers they faced,paying attention to the market only and operation all-time,then ignored some organizations may concentrated on the longterm development,causing the declined environmental trend and halved the number of students in both 2016 and 2017.New Way,as a small cram school,which has been operating for six years,when having trouble in the decreasing number of student problem,the management layers realize the deficiency of top-level design,and lack of business knowledge,which causes the organization suffering a heavy lost.During these two years,the top pay more attention to the problems of New Way,find out their department had poor relationship,and some useless departments,which waste their money,plans were always put off.The top have discussed the school's structure and the strategy until now,if it doesn't correct these problems in time,New Way will disappear among the competitors,which is much more serious than facing today's pain.We can analyze the circumstance of New Way by reading and economic factors in macro aspect,the situation of market,and the structure of the organization,resource utilization and the major of school of interior way.With the help of Michael Porter 's Five Forces,study the threats of existing competitors,potential threats,the bargain ability of customs and the replacement ability of other services,which may cause replacement.Compare advantages and disadvantages in each aspect,making up their mind to rebuild a new strategy owing to the whole changing market,taking the cost–first strategy as the most suitable for,the situation to solve New Way's trouble,which can not only help New Way find right way of the future's development,but also obtain the target profits for school.