New Oriental Education & Technology Group was established in Beijing on November 16, 1993. As a famous Chinese private educational institution, New Oriental Education & Technology Group has been listed on the New York stock exchange in the United States since 2006.
Why will New Oriental succeed?
First, it starts with the company’s management and staff. It has a hard-working and loyal team highlighted by members such as Qiang Wang, one of New Oriental’s co-founders. It also pays great attention to the talents of its employees as provides them with specialized training. The staff is very motivated compared to others in the same industry due to the company’s policies. For example, New Oriental pays its employees more than most other employees in the same industry. This keeps its staff loyal and happy. In addition, the company has formed an enterprise culture in which its employees are rewarded for their personal achievements. The company is also willing to adjust its management style if they see it is necessary.
Second, the company has a very broad market as more and more Chinese people are willing to pay for assistance in preparing for exams and getting ready to study abroad. The Company’s educational programs and services consist of language training and test preparation courses, primary and secondary school education, online education and post-secondary education. It also sells pre-paid online education cards primarily to distributors, who in turn sell them to students. The company distributes and sells books and other educational materials developed or licensed by it through its own distribution channels, which consist of its bookstores and websites, and also through third-party distributors. The Company also provides consulting services to students regarding overseas studies and related processes, such as visa applications. It charges each student a fee based on the scope of consulting services requested by the student. This broad product offering attracts a wide array of customers and provides them with a multitude of different ways to study.
Last, the company gains the support of the government. A key to conducting a successful business in China is to have good relations with the Chinese government. If the company has good relations with the government, it will often help the company prosper. If the company has poor relations with the government, it will receive no help and may even be shut down.
Due to these factors, New Oriental has a good chance to succeed.
Picture Source: New Oriental