The Impact of the Covid-19 Epidemic and “Double-Reduction” Policy on Corporate Transformation – A Case Study on New Oriental

Zheng Sun

doi:10.54691/bcpbm.v40i.4377

Authors

Zheng Sun

DOI:

https://doi.org/10.54691/bcpbm.v40i.4377

Keywords:

The COVID-19 epidemic; Double-Reduction policy; New Oriental; corporate transformation.

Abstract

From the outbreak of the COVID-19 epidemic in 2020 to the current Double-Reduction policy, it has a negative impact on the most companies. These corporates have undergone transformation, especially in the education and training industry. This paper analyzes how New Oriental transformation can be successful by analysing stock price. The epidemic and the Double-Reduction policy caused the stock of New Oriental to fall. However, this study finds that New Oriental has undergone digital transformation and strategic transformation. It launched the Online Merge Offline (OMO) model and established Oriental Selection, which lead to a rise in the stock price of New Oriental. According to the study, there are a couple of suggestions. The first suggestion is that companies should adapt to the development of society. The second suggestion is that companies should innovate in the way of transformation. There are similar industries learning from New Oriental's strategy in the company's transformation.

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