A Study On The Strategic Transformation And Development Of New Oriental Education Technology After The "Double Reduction" Policy

Over the past 40 years of reform and opening up,Chinese people attach more importance to education with the rapid development of our economy.With the increasing investment in education,the proportion of college students is increasing year by year.The off-campus education and training industry has also developed into a huge industry in a market-oriented way with the efforts of several generations.By the end of 2020,the market scale of China’s education and training industry has reached 2,509.6 billion yuan,among which the scale of K12 off-campus training has reached about 480 billion yuan,and the number of its institutions accounts for 25.8%of the entire education and training industry.The competition in the discipline training market was once white-hot,and the industry was in chaos.In response,since 2018,relevant departments have introduced a series of policies to standardize the industry behavior standards.In July 2021,the State Council and some other parts issued the double reduction policy-"Opinions on Further Reducing the homework burden of Students in compulsory Education and the burden of off-campus training".K12 disciplinary training business is required to withdraw from the market.New Oriental,one of the industry giants,responded quickly and completely terminated K9 subject training courses by Dec 31,2021.After stripping off the K12 business,which accounts for the main revenue,the total revenue of the two enterprises in fiscal 2022 was significantly affected,showing negative growth,and enterprise transformation is imminent.On the other hand,with the gradual expansion of the scale of labor market demand,and the support and encouragement of quality-oriented education and lifelong education in the national policy,the new track of education and training market ushered in new development opportunities.In addition,driven by the habit of home shopping during the epidemic and the widespread application of 5G technology in daily life,the live streaming e-commerce industry is developing rapidly.New Oriental may also explore a new blue ocean market outside the education industry.This paper takes New Oriental,a giant in the disciplinary education and training industry,as the research object.Under the guidance of concepts and theories related to corporate strategic transformation,it uses strategic management analysis tools to analyze the internal and external environment of the enterprise,and finds out the external opportunities,threats and internal strengths and weaknesses faced by the enterprise in its transformation and development,and puts forward some suggestions on the path selection,implementation and safeguard measures of enterprise strategic transformation.First of all,this paper analyzes the macro-environment of New Oriental using PEST tool,and makes a comprehensive analysis of the external environment such as the industry environment of education and training and the industry environment of live streaming e-commerce,so as to find out the opportunities and threats faced by the enterprise in its development.Secondly,on the basis of the analysis of the internal resources and capabilities of the enterprise,it summarizes its own strengths and weaknesses,and finds the core competitiveness of the enterprise.Generally speaking,opportunities outweigh threats and advantages outweigh disadvantages.Then,the external opportunities and threats and internal strengths and weaknesses are placed in the SWOT analysis framework.Paper then puts forward short,medium and long-term strategic objectives of strategic transformation and the planning opinions on business selection,talent and marketing strategy.Finally,it puts forward five guarantee measures for the smooth implementation of enterprise strategy.Through literature research,case analysis and other methods,this paper applies concepts and theories related to strategic transformation to the transformation decision of New Oriental,which has certain guiding significance for the development of enterprises to break the bottleneck,and provides reference basis for other institutions in the education and training industry to diagnose problems,so as to promote the sustainable and healthy development of the industry.