Research On Development Strategy For New Oriental Education&Technology Group

The globalization and China’s internationalization have had a rapidlydeveloping pace, whilepeople’s English competence is the prerequisite to adapt to thedevelopment. People have found opportunityin English training industry which bringsgreat benefits. For this, lots of English training institutions have been constantlyfounded, among which keen competition is developing now that each constitutionwants to promote or keep its position in English training industry. One of the mostinfluential representatives of them is New Oriental Education&Technology Group(OETG). OETG,founded in1993, has been the biggest privacy training institution andhas built the most influential brand in China. Therefore, its developingprocess,strategies opportunities, challenges, and the solutions how they deal withproblems are of great practical significance to other English training institutions.In this paper I will analyze the development of OETG in four directions andthen present proper choices to OETG’s future developing strategies. Firstly, the FiveThreat Model will be used to analyze the present situation of Englishtraining industry.Also, the OETG’s present core business will be analyzed here. Secondly, OETG’sdeveloping process will be presented, and then Jay B. Barney’s VRIO Model will beused to analyze the key points why OETG succeed. At the same time, the twoproblems of OEYG, the loss of executives and unstable performance will be analyzedhere. Thirdly, the developing environment for English training industry will beanalyzed and help decide the future of Englishtraining market, to analyze OETG’sinternal and external situations. Finally, SWOT will be used here to analyzeOOETG’s advantages and disadvantages they have accumulated the opportunities andchallenges they will meet. By the end of above analyses, four conclusions will be presented in this paper.First, people need high entering cost, high competition cost, fairly low substitutingcost for English training industry, which has strong providing and discussingcompetence, high threats to other companies, and middle threat to customers. Second,the key points to OETG’s success are optimistic and motivational OETG spirit,humorous and efficient teaching pattern, and the competence of developing programsand spreading brand. Third, though there is economic crisis, the support ofgovernment, people’s attention to social education, and the external value ofeducation make it is impossible to replace English training with technology. As aresult, English training industry is still in the constantly developing period. Fourth,OETG will keep its bran advantages in future development. What’s more, thepotential of English training industry is benefit for its expansion to get more benefits.At the same time, it should alert the spring up of other institution and the blindlyexpansion mistakes.By analyzing as above, the paper proposes that OETG should keep the goals tokeep brand advantages, expand the scale, and keep the quality of products. For that,they should take the strategies of qualitative expansion, bran expansion, product’sdifferentiation, and selling differentiation. Meanwhile, they have to proposedemandthat they should persistent OETG spirit, keep production’s quality, andcarryout policy strictly for their internal development.