Strategy Analysis of New Oriental Education and Technology Group
|School||Beijing Jiaotong University|
|Keywords||Education training marketing competition strategy management|
New Oriental Education & Technology Group (New York Stock Exchange: EDU) was born out of Beijing New Oriental School, which was established in 1993. After more than 14 years development, New Oriental Group has now grown up as a famous private education provider. At present, New Oriental group focuses on foreign language training and elementary education, with an array of training and educational programs. It is a large-scale comprehensive education and technology group combining education and training, education R&D, book, audio and video publishing, overseas education services, vocational education, online education, and the research and development of educational software. It was listed on the New York Stock Exchange on September 7,2006, the first private education company to achieve this feat in China.During the development process, New Oriental Group has experienced high-speed development of China’s education & training industry. However, there existing contradictions between its rapid expansion and shortage of human resources. New Oriental also has many internal weaknesses, such as simple marketing means, unsuccessful brand extension, unbalanced program development, etc. Meanwhile, the policies adjustment of exam and visa would affect the main business of New Oriental. After 2007, VC enterprise and investment organizations pay close attention to the development of China education & training company, the unparalleled rising of VC enthusiasm is also challenging the development of New Oriental.This paper focuses on the developing strategy of New Oriental Group, mainly analyze the current fierce marketing competition pressure New Oriental is experiencing, the environment of china education & training and discuss the characteristic, strength, weak, opportunity, threaten of New Oriental in order to find the countermeasure of development strategy. On the basis, the paper makes out pertinently a solution for the selection of strategy for New Oriental Group. This paper guided by the spirit of the development strategy, exercised the PEST analyzing theory, the spirit of the SWOT analyzing theory, the paper points out how to identify the opportunities in the business environment and adapting resources and competences so as to gain competitive advantage, which affords significant guideline on enterprise competition toward turbulent environment.The results of the study show that the more flexible strategies should be crafted at New Oriental. On the basis of overcoming internal weakness and take the strength, New Oriental should implement product research tactics to meet clearly individual needs, to take the brand building strategy, to recruit and cultivate more talents, to optimize the structure of organization, etc. New Oriental will definitely become the real winner.The value of this paper is describing and grasping the environment for the survival of New Oriental, making out a detail business strategy development planning for New Oriental and providing the references for other educational enterprises for strategy position and tactics decision-making and drawing.