Research On The Optimization Of Gaotu Group’s Profit Model

At the beginning of 2020,a sudden outbreak of the epidemic has brought a huge impact on human life.With the proposal of the Ministry of education’s call for "no school suspension",online education has entered people’s vision with a strong attitude.This market has 100 million potential users,and the prospect is very good.At the same time,because many institutions want to take a share,whether they can survive in this market has become a problem.Moreover,the "double reduction" policy in 2021 makes the market of online education enterprises turn downward,and the online education industry is bleak.This paper selects gaotu group as the research object.Firstly,it summarizes the literature on the profit model of online education published by domestic and foreign scholars over the years,and studies the theoretical basis of the profit model.Then it briefly introduces the development status of online education,and points out its existing problems.This paper introduces the development process and main products and services of gaotu group,analyzes the constituent elements of its profit model on the basis of the five factor profit model,and finds that it has created a profit model with curriculum content as the profit point,the combination of individual institutional users as the profit object,the middle class in the first and second tier cities as the profit source,the online education system as the profit lever,the famous teacher effect and technical advantages as the profit barrier.By combining the five elements with statements and relevant indicators,this paper analyzes the financial quality of gaotu group,it is found that the current profit model of gaotu group is poor and has losses.Based on the above analysis,it is concluded that there are some problems in its profit model,such as inapplicability of profit points to the new environment,low satisfaction of profit objects,single profit source,unstable profit leverage and weak profit barrier ability.Finally,it puts forward optimization suggestions for gaotu group’s profit model from three perspectives: whether K12 business is possible to develop at present,the direction of future transformation and the design of new business profit model based on the transformation direction,It is hoped that the relevant research on gaotu’s profit model can provide some references for other enterprises.With the implementation of the "double reduction" policy,the online education industry is bound to face transformation.The repeated epidemic and the promotion of policies make the online education market still large.Exploring the profit model of the industry can help enterprises improve their business activities and enhance their value.It is hoped that the Optimization Research on the profit model of enterprises in the stage of business transformation can provide some directions and ideas for other enterprises that are also facing the risk of transformation.