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Ever since China abruptly cut off the bulk of income for most private education companies in 2020, the businesses have had to make some difficult

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Ever since China abruptly cut off the bulk of income for most private education companies in 2020, the businesses have had to make some difficult decisions. For New Oriental, once the leader of the sector, is forces to let go of most of its tutors for the K9 grades and setting up a new livestreaming e-commerce unit to make up for some of the lost income. Until June 2022, New Oriental's new live e-commerce initiative had been lackluster at first. Its daily sales hovered around less than RMB 1 million ($150,000) in the past six months (according to data from livestreaming tracking platform Huitun). New Oriental's e-commerce initiatives are gaining more attention and generating more revenue during pandemic. New Oriental starting to change its strategy, all former teachers are starting to teach English while selling goods over their livestream videos. Oriental Select's account on Douyin, the platform where the brand livestreams, has gained more than 1.6 million followers in three days since June 10. An 18-hour-long livestream held on June 11 recorded RMB 19.9 million in sales, a jump from the RMB 4.5 million New Oriental's founder Yu Minhong achieved on his December debut. Instead of the hard-sell advertising style used by most Chinese e-commerce live streamers, hosts at Oriental Select, all former teachers at New Oriental, display a laidback attitude when selling through the livestreams. As a leader in the educational tutoring service industry, New Oriental's new approach to combine online selling with English learning and foreign culture could provide a direction for the transformation of the education industry, industry insiders said. In addition to New Oriental, other education companies have also embarked on the road of transformation in exploring a variety of new business opportunities. In February 2022 , Puxin Education announced that the company is evaluating the feasibility of running a Page 2 Chinese fast food chain restaurant business after selling its off-campus training business last year. On June 10, Rise Education announced that the company completed the merger transaction with Dada Auto to explore electric vehicle charging service. a) Conduct a Five Forces analysis for New Oriental's entrance into e-commerce scene. (10%) b) What examples have you seen in the case about the company's resources and competencies? (10\%) c) Suppose you are the manager of New Oriental, please set a SMART goal for July 2022. (10%)

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