On July 24, 2021, Chinese authorities issued the Double Reduction Policy to ease the burden of excessive homework and off-campus tutoring for students undergoing compulsory education in China. Off-campus English tutoring became strictly regulated, and hiring foreign teachers abroad to carry out training activities was strictly prohibited. 51Talk had achieved great success in the K–12 English online tutoring market, and this business accounted for more than 95 per cent of the company’s total revenue. However, the company would not be able to continue its K–12 student English online tutoring business in the Chinese market under the Double Reduction Policy. Jack Huang, 51Talk’s founder and chief executive officer, had to consider how to transform the company in order to survive.
51Talk：应对中国的 “双减” 政策 51Talk: Navigating China’s New Tutoring Policy (Simplified Chinese version)
Jiqing (Harvey) Zhu, Alex Beamish, Paul W. Beamish
Product #:W33824
Supplier:Ivey
Discipline:International Business, Strategy
Setting:China, 2021
Industries:
Your Price:$10.54
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Learning Objectives
- 认识到日益变化和不可预测的环境中的机遇和挑战，以制定和实施战略转型和业务调整来实现可持续发展；
- 应用战略分析工具和框架来确定51Talk 面临的问题，并对处于危机中的公司面临的备选方案进行战略评估；
- 评估单一业务公司在动态和动荡环境中的风险。
This case is suitable for students in strategic management, international business, and entrepreneurship courses at both undergraduate and graduate levels. For a strategic management class, this case can be framed around strategic transformation and business adjustment in an increasingly dynamic and unpredictable environment. In an international business course, the case can be used to discuss foreign market expansion issues, such as where to go next. Due to social and cultural differences, it is uncertain whether 51Talk can replicate its business model in overseas markets. This case can also be used in an entrepreneurship course. After working through this case and assignment questions, students will develop their ability to
- identify the opportunities and challenges in increasingly dynamic and unpredictable environments, so as to formulate and implement strategic transformation and business adjustments to achieve sustainability;
- apply strategic analytical tools and frameworks to identify the issues facing 51Talk, as well as undertake a strategic assessment of the alternatives facing a company under crisis; and
- assess the risks of a single-business company in a dynamic and disruptive environment.