Chapter 99 Enlightenment from the Dairy Crisis and Baidu Disturbance on May 16

I have seriously thought about what is New Oriental's biggest crisis and risk?The dairy industry crisis occurred in the 2008 "melamine" incident in China's dairy industry. , Baidu storm Baidu search engine search results contain a large number of bidding rankings, that is, advertisements bought by companies. In 2008, this bidding ranking was accused of excessive manual interference in search results, which was called "extortion marketing".These two things stimulated me a lot.We began to seriously study any risk point of New Oriental, both potential and explicit, which must be taken into consideration.The guiding ideology and strategic choice of the highest decision-making level are the key to whether New Oriental can break through itself on a larger level and continue to improve.So I have to strengthen my personal cultivation.

Through the crisis in the dairy industry and the Baidu turmoil, Yu Minhong learned many truths, such as running a business with integrity, learning to win-win with the industry, and maintaining sincere awe and respect for customers.At the same time, Yu Minhong also realized that in the process of development, enterprises should pursue the matching of speed and efficiency. Many enterprises pay attention to the speed of development and ignore economic benefits; they attach importance to market share and ignore profit margins, resulting in market collapse. The lesson of the dairy crisis and the Baidu turmoil lies in their fearless capture of commercial interests and the "black hole" of decision-making.In Yu Minhong’s view, Chinese enterprises should transform from speed-oriented to efficient-oriented as soon as possible. Enterprises without speed cannot develop, and speed without benefits cannot last. High speed and low efficiency indicate operational risks. The first prerequisite for the development of enterprises and industries is speed. Harmonious resonance with benefits.

The impact of the financial crisis on New Oriental is indeed an objective existence.The children's English training market is still growing rapidly, while adult English training has been negatively affected.Branch schools in coastal areas such as Shenzhen, Guangzhou, and Shanghai were more obviously affected by the financial crisis. After the end of the winter and summer vacations in 2008, Yu Minhong asked the financial department to collect various data, conduct in-depth research and analysis based on these data, and then decide on specific countermeasures.After the crisis, orderly and benign market competition has become more and more important and critical, and cooperation on a larger scale should be carried out. In the process of cooperation, integrity and tolerance should be maintained to seek a win-win situation for both individuals and the industry.This is not only an issue for the development of the dairy industry, but also an issue that deserves New Oriental's vigilance.

Continuous development, continuous trial and error, and continuous revision. Only by self-examination and self-sustainment can enterprises and industries get rid of "fragility".