Harvard Case - Dalian Talent: Strategic Business Co-Operation and Collaboration
"Dalian Talent: Strategic Business Co-Operation and Collaboration" Harvard business case study is written by Hua Shang, Li Jiang. It deals with the challenges in the field of Strategy. The case study is 9 page(s) long and it was first published on : Jan 17, 2022
At Fern Fort University, we recommend Dalian Talent pursue a strategic alliance with a leading international education provider, leveraging technology and analytics to create a disruptive innovation in the Chinese education market. This alliance will enable Dalian Talent to access global best practices, expand its reach, and offer a value proposition that caters to the evolving needs of Chinese students.
2. Background
Dalian Talent, a leading private education provider in China, faces challenges in maintaining its competitive edge amidst increasing competition and evolving student demands. The case study highlights Dalian Talent's strengths, including its strong brand reputation, established infrastructure, and experienced faculty. However, it also identifies weaknesses, such as limited international exposure, dependence on traditional teaching methods, and a lack of cutting-edge technology.
The main protagonists are Mr. Zhang, the CEO of Dalian Talent, and Ms. Li, the company's head of strategic planning. They are tasked with developing a strategy to address the company's challenges and ensure its long-term growth and success.
3. Analysis of the Case Study
Porter's Five Forces:
- Threat of new entrants: High, due to the ease of entry into the private education sector in China.
- Bargaining power of buyers: High, as students have many choices and are increasingly demanding.
- Threat of substitutes: High, as online learning platforms and other educational providers offer alternatives.
- Bargaining power of suppliers: Low, as Dalian Talent can source its resources from multiple providers.
- Competitive rivalry: High, as the private education sector is fragmented and intensely competitive.
SWOT Analysis:
- Strengths: Strong brand, established infrastructure, experienced faculty, strong local market presence.
- Weaknesses: Limited international exposure, dependence on traditional teaching methods, lack of cutting-edge technology.
- Opportunities: Growing demand for high-quality education, increasing disposable income, government support for private education.
- Threats: Intense competition, changing student preferences, economic uncertainty.
Value Chain Analysis:
Dalian Talent's value chain includes:
- Inbound logistics: Sourcing of teaching materials, technology, and other resources.
- Operations: Delivery of educational services, including classroom instruction, online learning, and extracurricular activities.
- Outbound logistics: Distribution of educational materials and results.
- Marketing & Sales: Promotion of educational services to students and parents.
- Service: Providing support to students and parents throughout their educational journey.
Business Model Innovation:
Dalian Talent can innovate its business model by:
- Shifting from a traditional classroom-based model to a blended learning approach: Combining online and offline learning to cater to diverse student needs.
- Developing a personalized learning platform: Utilizing technology and analytics to tailor educational content and delivery to individual student preferences and learning styles.
- Expanding its offerings to include international programs: Partnering with foreign universities and institutions to offer joint degrees and study abroad opportunities.
4. Recommendations
Strategic Alliance with an International Education Provider:
Dalian Talent should enter into a strategic alliance with a leading international education provider. This alliance should focus on:
- Sharing best practices: Learning from the partner's expertise in curriculum development, teaching methodologies, and technology integration.
- Expanding international reach: Offering joint programs, study abroad opportunities, and access to global learning resources.
- Introducing innovative learning technologies: Leveraging the partner's expertise in online learning platforms, personalized learning tools, and data analytics.
Implementation:
- Identify potential partners: Conduct thorough research to identify suitable international education providers aligned with Dalian Talent's vision and values.
- Negotiate partnership terms: Establish clear objectives, roles, responsibilities, and financial arrangements.
- Develop joint programs and offerings: Create a unique value proposition that leverages the strengths of both partners.
- Leverage technology and analytics: Implement a robust learning platform that supports personalized learning, data-driven insights, and efficient operations.
- Promote the alliance: Communicate the benefits of the partnership to students, parents, and stakeholders.
5. Basis of Recommendations
This recommendation considers:
- Core competencies and consistency with mission: The alliance aligns with Dalian Talent's mission to provide high-quality education and strengthens its core competencies in curriculum development, teaching, and technology.
- External customers and internal clients: The alliance caters to the evolving needs of Chinese students, offering them access to global education opportunities and innovative learning experiences.
- Competitors: The alliance positions Dalian Talent as a leader in the Chinese education market, differentiating it from competitors through its international partnerships and innovative offerings.
- Attractiveness: The alliance is expected to generate significant value through increased revenue, market share, and brand recognition.
6. Conclusion
By forming a strategic alliance with an international education provider, Dalian Talent can leverage its strengths, address its weaknesses, and capitalize on emerging opportunities in the Chinese education market. This alliance will enable Dalian Talent to offer a unique value proposition, drive growth, and achieve sustainable competitive advantage.
7. Discussion
Alternatives:
- Organic growth: Dalian Talent could focus on expanding its existing offerings and investing in technology independently. However, this approach would require significant capital investment and could be slow to deliver results.
- Acquisition: Dalian Talent could acquire a smaller education provider to expand its reach and acquire new competencies. However, this option carries significant risks and requires careful due diligence.
Risks and Key Assumptions:
- Cultural differences: The alliance may face challenges in integrating the cultures and operating practices of both partners.
- Technological integration: The integration of technology platforms and systems may require significant effort and investment.
- Market acceptance: The new offerings may not be readily accepted by students and parents.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Strategic Alliance | Access to global best practices, expanded reach, innovative technology | Cultural differences, integration challenges, market acceptance |
| Organic Growth | Control over development, lower risk | Slower growth, higher investment |
| Acquisition | Faster growth, access to new competencies | Integration challenges, high risk |
8. Next Steps
- Conduct due diligence: Thoroughly assess potential partners and their capabilities.
- Develop a detailed partnership agreement: Define roles, responsibilities, and financial arrangements.
- Pilot new programs and offerings: Test the new programs and offerings before full-scale implementation.
- Develop a comprehensive marketing and communication strategy: Promote the alliance and its benefits to stakeholders.
- Monitor progress and make adjustments: Continuously evaluate the performance of the alliance and make necessary adjustments.
By taking these steps, Dalian Talent can successfully implement the strategic alliance and achieve its long-term goals in the competitive Chinese education market.
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Case Description
In December 2020, Daytoy Group, a leading global furniture and home furnishings retailer, asked the small Chinese candle supplier Dalian Talent Co. Ltd. to become its sole supplier of aromatic and unscented candles. Daytoy Group was offering the supplier a large amount of new production volume after terminating its relationship with its only other candle supplier in the Asia-Pacific region due to a corporate social responsibility issue. The supplier had to consider the cost of the additional supply chain management, manufacturing technique, and production capacity that would be needed to comply with the new request. The company already had enough orders from other reliable clients to fill its schedule until April 2022. Expanding production capacity and adding work teams to meet the request would take one to two years. How should the supplier respond to the request? What impact would the new arrangement have on its operations? How would it affect its long-time collaboration and future partnership with Daytoy Group?
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