Research On The Development Strategy Of XD Education Group

In 1977,with the restoration of China’s college entrance examination system,China returned to the era of advocating knowledge and pursuing education.Countries more and more pay attention to the cultivation of talent,increasing government spending on education,make to China’s education cause rapid development,the overall education level enhances unceasingly,the education scale expands unceasingly,enrich education sort,for China’s development in the field of talent base and technology support,for the society’s sustainable development laid a solid foundation.The state’s emphasis on education,the popularization of compulsory education,the expansion of colleges and universities,the establishment of a market economy and the huge demand brought about by a surging population have given birth to the education and training industry.The state supports the development of private education,constantly improves education laws and regulations,and promotes the legalization of private education.The rapid growth of education and training industry,considerable prospects to attract the eye of the capital.In recent years,the education and training industry is overcapitalized,and the state has issued a number of regulatory policies and laws and regulations to standardize it.On July24,2021,the "Opinions on Further Reducing the Burden of Homework and Off-campus Training for Students in Compulsory Education"(hereinafter referred to as the "double reduction" policy)was promulgated,causing a stir in the industry.In addition,the global spread of the novel coronavirus pneumonia(hereinafter referred to as "COVID-19" pandemic)has also caused a great impact on the education and training industry.XD Education Group is an after-school education and training institution with more than20 years of experience in personalized education.It takes K12 education(kindergarten through Twelfth Grade,the general term for basic education in the world)as its main business and carries out the "double helix" education mode.With the landing of the "double reduction" policy,the K12 education market shrank rapidly.Coupled with the continuous impact of the epidemic,the main business profit of XD Education Group in 2021 was-484 million yuan,the net profit attributable to the shareholders of the listed company was-536 million yuan,and the equity per share was-4.7 yuan.To this end,XD Education Group adjusted and optimized the company’s business strategy and business structure,scaled down the campus,and drew up a goodwill impairment reserve of 453 million yuan on the premise of ensuring compliance with the law and taking into account the actual situation of the enterprise.In this environment,XD education Group development strategy research is imperative.This paper uses PEST analysis,Porter’s five forces model,CPM matrix and other strategic analysis tools to analyze the external strategic environment of XD Education Group.This paper analyzes the internal strategic environment of the enterprise from the perspective of resource,capability and current situation.EFE matrix and IFE matrix are used to quantitatively analyze the external opportunities and threats,internal advantages and disadvantages of the enterprise.Then SWOT matrix is used to combine the four key factors and make qualitative analysis to formulate alternative strategies.Then the QSPM matrix is used to optimize the strategy and finally determine the diversified development strategy.Finally,the GE matrix is used for product positioning.In order to realize the diversified development strategy,this paper puts forward five implementation measures: resource diversification,product diversification,market diversification,channel diversification and service diversification;And six risk control,including policy risk,COVID-19 risk,new business risk,management team change risk,goodwill impairment risk,and operational cost increase risk;In order to ensure the implementation of diversified development strategy,the paper puts forward five strategic guarantees,namely,organization guarantee,capital guarantee,talent guarantee,system guarantee and informatization guarantee.