Study On The Impact Of New Oriental’s Transformation On Business Performance Under The "Double Reduction Policy"

On July 24,2021,the General Office of the Central Committee and the General Office of the State Council issued the "Double Reduction Policy".In order to implement the "Double Reduction" policy,education and training institutions that focus on subject training in the compulsory education stage will either consider shutting down or choose major strategic transformation.New Oriental is one of the enterprises with significant impact in the "double reduction" policy,and this enterprise has chosen strategic transformation in the "double reduction" policy.According to relevant research,in order to survive,enterprises usually undergo strategic transformation to meet new environmental requirements based on market trends,customer needs,and other changes in the business environment.The effectiveness of strategic transformation can be judged to some extent by analyzing changes in enterprise performance.This article takes the strategic transformation of New Oriental,a leading enterprise in the education and training industry,under the "double reduction" policy as a case study.Based on the research background and significance of the case analysis,the specific impact of the "double reduction" policy on New Oriental is studied,and the motivations and countermeasures for New Oriental’s strategic transformation are elaborated.The event study and financial index method are used to analyze the changes in the business performance of its strategic transformation in depth,summarize the effectiveness of New Oriental’s strategic transformation,and propose corresponding countermeasures and suggestions for possible shortcomings and risks,providing experience and reference for research in related fields,helping New Oriental to survive and develop under the new policy,and providing reference for enterprises in the same industry.This article closely follows the current hot topics and finds through research that the "double reduction" policy has led to a cliff like deterioration in the market situation and financial situation of the education and training industry in 2021.Other industries in the same industry still performed poorly in 2022 and did not show any improvement.Compared to the same industry,New Oriental’s transformation is considered successful.Although it is not as good as before the "double reduction" policy was issued,compared to the situation in 2021 and the same industry,New Oriental’s market performance and financial performance are relatively good.Especially compared to the same industry,under the "double reduction" policy,New Oriental has shown better pressure bearing capacity.This indicates that New Oriental’s cross industry transformation of e-commerce has a certain reference value for the strategic transformation of the same industry.