Research On Business Strategy Of New Oriental Education Technology Group In The Context Of The So-called Double Reduction Policy

In recent years,the scale of education and training industry in China has continued to expand,and maintaining a rapid development trend.However,in 2020,affected by the COVID-19,the education and training industry in China is facing severe crises and challenges.A majority of education and training institutions,in order to survive,are transforming their offline business to online.A large amount of capital has poured into the industry,and causes a lot of chaos in the development of the industry.In July 2021,The Opinions on Further Reducing the Burden from Homework and the Off-campus Tutoring for the Students in Compulsory Education Stage has been issued by the State Council(hereinafter referred to as Double Reduction).This policy aims to standardize the off-campus training and guide the development of the education and training industry.In the context of the Double Reduction Policy,as for the off-campus training institutions,it is an important topic of solving the problem of corporate survival on how to change their business strategies and reasonably avoid policy risks.This dissertation uses New Oriental Education Technology Group(hereinafter referred to as New Oriental)as a case to research on its business strategy in the context of the Double Reduction policy.By using corporate management analysis tools,such as PEST,Michael Porter’s Five Force,SWOT,GE Matrix etc.,combining with New Oriental’s corporate vision and strategic goals,firstly,it comprehensively analyzes the macro environment of the education and training industry,and summarizes the opportunities and threats that it faced in the external environment.Secondly,it analyzes the competitive environment of the industry,identifies the strengths and potential shortfalls of New Oriental,and sorts out the company’s core competition in the current marketing environment.In addition,the main impacts of the Double Reduction policy on the education and training industry are summarized.Finally,based on the combination of theory and practice,through quantitative research analysis methods,it is concluded that in the context of Double Reduction,New Oriental should choose a Horizontal Diversificationa strategy suitable for the current environment,also continue to develop the OMO model,integrate online and offline business,formulate appropriate business strategic and safeguard measures.The research conclusions have made reasonable plans and suggestions for the adjustments of the business strategy of New Oriental Education Technology Group,and provided practical value for the choice of its business strategy.At the same time,it provides business transformation ideas and references for all the education and training institutions in China,helping the standardization of the management and development for the education and training industry,as well as creation of a healthy education ecosystem.