A Case Study on Competitive Advantage of Mandarin's Extracurricular Education at Taoyuan,Taiwan

• Main Authors: Yu-Ping Chiang, 江玉萍
• Other Authors: Chih-Ning Chu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/36143142115369665852

碩士 === 中原大學 === 企業管理研究所 === 97 === Over the years, because of social structural changes, such as double earner families and education recognition, cram schools for children have been booming with popularity and toward diverse specializations and have become an indispensable industry in society. However, after the last twenty years of prosperous growth, the industry is now facing extremely harsh challenges from the external environment. Imbalance between supply and demand has already caused cut throat competition between cram schools. The plan from elementary schools to extensively offer after-school programs has proposed an even bigger threat. Under such circumstances, it is very difficult to find a coming business model for cram schools. Therefore, at the moment there are two major issues that must be carefully examined: First, what should be the thinking and strategy for cram schools to layout plans, prepare for the future and aim at getting the most synergy? Second, under the premise of continuing growth and sustainable development, how to utilize the existing resources and create a rolling life-cycle so as to achieve mutual resource complement and sharing, core value heritage and innovation? This research is a study of a Mandarin cram school in Taiwan to investigate its core competitive ability, innovative and competitive advantage, as well as the opportunities and threats proposed from the changing external environment, and to understand how it can best use its advantages and adjust its disadvantage to grow over the creation and development phase and move on to another life cycle. This study uses qualitative case study analysis, through exploring both domestic and international related literature, data collection, interviews, and through the in-depth study, to sum up the competitive advantage behind its business model. The conclusions summarized as follows: First, "Opportunity is only for those who are prepared." This argument explains why some companies become market leaders, as they can quickly seize the opportunity when the market changes and take a favorable position. Second, proper market positioning, grasp the top and high-quality customers, and gradually create the hard-won branding effect. Third, horizontal expansion and mutual resources sharing can not only deliver a win-win outcome, but also increase the market share and ultimately achieve economies of scale, high barriers to entry and deter the potential competitors. Summing up the above three key elements, the most critical strategy of the cram school in this case is "raising the entrance barrier, utilization of core resources and branding effect." This study aims at exploring the various interrelated elements, which form the competitive strategy and hope to offer a reference for companies seeking its own competitive strategy.