Research on the Effectiveness of Traditional Education Service Provider Entering New Market on Brand Group

Abstract

Starting in July 2021, a far-reaching event occurred in the education industry: the Double Reduction Policy (DRP) was fully implemented in China. This policy has a great impact on the vast majority of families with children, as well as on the operation of public schools and private education institutions. In this paper, New Oriental Education & Technology Group (New Oriental) was used as a case study to conduct SWOT research and analyze the long-term impact of this behavior on its brand image (BI) and brand loyalty (BL) after the group entered the live-commerce domain under the DRP. Through the detailed investigation of the case, it was proven that the strategic decision of entering the live-commerce business can bring financial advantages to New Oriental in the short term, but it had a negative impact on its BI and BL in the long term. Through reviewing the literature and analyzing this specific case, this paper believed that entering a new business field, especially when selling products or services at lower prices, will have a negative impact on the BI and then affect the BL.