Research on Business Model Innovation and Control of China's Education & Training Industry: New Oriental Education & Technology Group as an Example

The for-profit education and training industry in China began in the late 1980s. As a result of the growing demand for education and training services and of lower barriers to entry into the training market, the number of education and training companies has increased in the past twenty years. This paper provides a case study about New Oriental Education & Technology Group, a company that has been in the industry since the beginning of its development. The aim of the paper is to explore how New Oriental adapted in the face of rapid market changes. The authors argue that New Oriental's success story stresses the importance of value innovation fueled by constant adjustments to its business model. The case study also reveals that management and control play integral roles in the success of business model innovation.