The Research On Strategy Transformation Of X Group XM Subsidiary

The Double-reduction policy imposed in July 2021 had generated a huge impact to Chinese education industry.The academic tutoring business in compulsory education level could not be carried out as previous times.The financial performance for educational enterprises with academic tutoring business would be largely affected,and their developing strategy should be reconsidered.X Group is China’s first listed company with a history of nearly 30 years.Its highest market value was close to 35 billion dollars.During the first year of double-reduction policy,its sales was reduced by 80% and market value reduced by 90%.The double-reduction policy brought huge impact to X Group,and it is now facing urgent strategic transformation.XM company is a subsidiary of X Group and it had become the No.1 education institution in regional market.Under the double reduction policy,XM company is also facing strategic transformation.Under above background,this thesis investigated XM company’s strategic transformation.The research background,significance,and relative models and theories were introduced.The impact of double-reduction policy to education industry was analyzed as well as XM company’s macro and industrial environment.External environment of XM company’s strategic transformation was summarized.XM company’s internal environment was analyzed using resource-capability model.Based on this,the SWOT and QSPM model was applied to explore XM company’s strategic options and strategic choice.Finally,XM company’s strategic transformation measures were proposed.This thesis suggests XM company take the following strategic transformation measures: Stay in the educational industry and focus on quality education,career education,labor education and other businesses rather than academic tutoring business.XM company should support the X group in exploring the new business.XM company’s strategic transformation measures are the transform of its service which is closing the academic tutoring business,keep English training,overseas application business and expanding business in quality education,career education and labor education.The business region of XM company should keep current situation.