The Research On Development Strateey For LF Company

With China’s rapid economic development and increase of people’s income levels, household expenditure on education is on a gradual rise. Meanwhile, due to the relative inadequacy of high-quality educational resources in the country, studying abroad has become a new hot spot of consumption to the better-off Chinese families. Those who foot the bill themselves account for a vast majority of the people studying abroad, which provides a solid foundation for the emergence and development of overseas education service industries including Sino-foreign cooperatively-run schools and education agents. Among the numerous overseas education service providers, LF Company has made remarkable achievements through a decade of growth. However, amidst the changes of external environment of the industry, LF Company is faced with more and more challenges.This paper, with a focus on the approach of development of LF Company, based on the relevant corporate strategic management theory, conducts an in-depth analysis and research on the development of the company. Firstly, the paper gives an overview of the macro environment (PEST analysis) and industry environment ("five forces" model analysis) facing the company, analyzes the company’s existing resources and capabilities, and summarizes the company’s strengths and weaknesses, as well as the opportunities and threats. On the basis of the above analysis, the paper proposes strategies appropriate to the company development, i.e., LF should adopt intensive development strategy (mainly including market penetration and product development) and Blue Ocean Strategy for the purpose of seeking value innovation. According to the situation of the company, a series of measures to ensure the implementation of the strategies have been proposed:to enhance the company’s overall marketing capability; to strengthen product research and expand product line; to seek strategic alliance; to pursue value innovation and build blue ocean. Meanwhile, security system is also proposed:to an innovative, efficient, continuously improving corporate culture; to implement human resource construction and training of innovative employees; to build an impressive honest and professional brand; to strengthen information construction and improve efficiency.This paper presents an empirical research on LF, intending to enhance the overall competitiveness of LF for realizing sustainable development, and provide valuable experience for its counterparts so as to promote a healthy and orderly development of the whole industry.