Research On The Strategic Transformation Of Chengdu W Education Group Under The "Double Reduction"

To start an enterprise is to realize the phased operation objectives of the enterprise through enterprise operation,and finally complete the mission and vision of the enterprise.In each stage of operation,the enterprise’s strategy should be adjusted according to the external environment and internal factors of the enterprise,so that the enterprise can achieve sustainable development.This paper selects Chengdu W Education Group,a typical discipline training enterprise in the education and training industry,and analyzes how W Education Group should make strategic transformation due to external "double reduction" policy reasons.The emergence of the "double reduction" policy is a fatal blow to the educational institutions that mainly focus on subject education and training,because the subject education and training business of such institutions accounts for about 80%,while the compulsory stage business accounts for about 60%.The blind expansion and occupation of the market and the non-diversified business model make the enterprise’s capital chain tight and bear huge risks.W Education Group has accumulated a certain reputation and student base for many years,and has experience in developing courses.In addition,W Education Group also has cooperation and research in private schools,which provides a certain basis for W Education Group’s strategic transformation.Therefore,double reduction is both a desperate situation and a turning point for W Education Group.According to the environmental adaptation theory,industrial organization theory,resource-based theory and strategic transformation theory,this paper analyzes the internal and external environment of the enterprise using PEST model,Porter’s five forces model and SWOT method,and formulates the company’s transformation strategy at the company level,management level and functional level in view of the internal and external environment conflict.Specifically,the transformation of development strategy:the horizontal integration strategy has been transformed into the relevant diversification strategy.On the one hand,private school has been opened.Due to the high fees and diversified businesses of private schools,the school’s business income can make up for the loss of the main business to a certain extent and reduce the risk of enterprise capital rupture after the double reduction.At the same time,school,as the upstream of W Group’s education enterprises,has provided a stable source of students,In turn,the curriculum development of W Education Group can also be used in the teaching of School,thus reducing the operating costs of School;On the other hand,develop quality training,vocational training,research tourism,after-school service products to create growth points and diversify business risks.Transformation of competitive strategy: lowcost strategy is transformed into differentiation strategy,which is mainly manifested in the differentiation of marketing channels,teaching services and educational products.Finally,it analyzes what measures are needed to ensure the smooth implementation of the strategic transformation.Taking W Education Group as a case,this paper provides some reference value for the strategic transformation of enterprises in the education and training industry,and also provides W Education Group with the clue of transformation.