Vipkids water philosophy

category:Internet
 Vipkids water philosophy


As the main soil of knowledge resources, educational resources pull human beings into the door of knowledge society with the help of printing and university mode. However, in the industrial society which advocates experts and division of labor, educational resources can not become a part of the affluent society like mass consumer goods. In other words, in a rich industrial society, the value of education is often reflected not in its actual effect, but in its special attribute of scarcity.

It is obvious that in the affluent society of Galbraith, an American economic thinker, education is unnecessary.

Matsushitas water philosophy was born in a special material environment in postwar Japan. From the very beginning, he emphasized the social responsibility needs at both ends of cost and consumption, so that users can enjoy the products and services of Panasonic like drinking tap water.

The industrial era can solve the supply chain network and sales network of physical products, but it can not solve the network of education, which can also be said to be the socialization of education. The gist of social learning, in Druckers words, is: learning is outside the window, others are teachers, and the world is a textbook.

For the network society, it is to solve the problem of knowledge socialization which cannot be solved in the industrial age. Only socialization can completely break the knowledge level dominated by experts and division of labor.

Miwenjuan, founder of vipkid, said in a conversation with Lu Qi, I have been a part-time tutor since I was 15 years old, teaching children English. Since then, teaching has always been my interest, and learning has become my motivation. For example, the process of teaching children, let me know that in fact, every child is full of curiosity. We should connect them with the best teachers in the world, the best curriculum content, and create a learning experience that can be imagined and explored. The process of being an English tutor also taught me that learning is very important for the teacher himself. Only if you learn more and take lifelong learning as your belief, can you teach better and help children learn better.

In fact, social education is a kind of ultimate social responsibility, which provides not only knowledge and skills, but also lifelong employability. This is also Druckers expectation for the knowledge society.

These are the sociological factors that make online education exist as an independent business type and obtain long-term capital support.

Think like Matsushita Matsushita

An epidemic situation has made Chinas online education market more and more hot, and also made the companies involved more crazy.

The variety shows have become the major online education brand arena. From the initial exposure of the brand at the beginning and the end of the film, to the frequent verbal broadcasting of the host and program guests, many netizens expressed emotion: watching a variety show can be dominated by the education platform, fortunately, I have graduated. As one of the leading industries of variety show, online education never cares about eating, drinking, playing, singing, dancing and competing -- as long as the audience is large, it is my destination.

Behind this is a set of traffic control theory: traffic is the life of online education.

Spending money to buy traffic is the standard operation of Internet products. For online education, can it be picked up by more people by spending a lot of money on variety shows and movies? Can it be the real driving force for sustained growth?

Matsushitas reflection on Matsushita coincided with the rapid growth period of Japan after the war, that is, the 1960s-1970s. At that time, Japan was quietly approaching the United States with its unique industrial manufacturing concept. It was at this time that Matsushita saw that the Japanese industry was still relying on a large number of loans to purchase equipment when it exceeded its own strength and capacity, resulting in overcapacity and weakening of the enterprise system.

The result of this situation is that once the external financial environment changes dramatically, fat enterprises will be vulnerable. Therefore, Matsushita adjusted the companys strategy from transitional growth to healthy growth, so as to relieve the pressure of sales channels, and thoroughly reformed the companys sales system.

In the complete works of Matsushitas management, we can see many reflections and warnings of Matsushitas expansion of enterprise scale and overstaffing of organization. He once sighed in a short article, now Panasonic is standing at the point of divergence between development and collapse..

As a result, Matsushita has put forward many interesting but extremely cool ideas, such as tortoise style expansion and proper management. The expansion of organization scale must be due to the expectation of revenue scale, but if this expansion is beyond the scope of its own ability, then the enterprise should carefully consider how much our ability can do.

The excess of industrial energy in the industrial age is the myth of capital arrogance and scale in the network age.

For this, vipkid chose sayNo decisively.

Press the stop button, vipkid co-founder and president Zhang Yuejia said that the stage of burning money regardless of cost is gone.

Unless the scale of the money burn can be a barrier to competition, this investment is of no value. Zhang Yuejia said.

In fact, in a fully competitive field, burning money does not bring competition barriers. Whether it is the concept of core competitiveness or ecosystem, capital is not the first prerequisite. It is your innovation ability that plays a decisive role, which comes from the adaptation of management and operation.

Founded in 2013, vipkid has created a unique category of beautiful foreign teachers in North China. It is the first time to connect global high-quality education resources on a large scale through the Internet. It has obtained investment of nearly 1 billion US dollars from Sequoia China, Jingwei, Tencent, Yunfeng and other top investment institutions. It has led online education into an investment outlet and is the pioneer and leader of Chinas online education industry.

Even so, vipkid is difficult to avoid traffic traps and industry drawbacks. This industry star company has been pushed to the top of the storm for several times due to the negative news such as layoffs and burning money.

The high cost of customer acquisition has become a heavy burden for consumers and online education companies. On the one hand, it is the ever-increasing class registration fee, on the other hand, it is gradually increasing the proportion of revenue.

According to the statistics of yiou.com, in the summer of 2019, the total marketing and promotion expenses of Toutou online education company exceeded 4 billion yuan, of which the market investment of XRS online school reached about 1 billion yuan, and that of ape tutoring and homework help was about 400-500 million yuan.

Obviously, MI Wenjuan and vipkid do not want to continue to sink in the burning money to win customers. The earlier the end of such brutal competition, the more conducive to the long-term development of vipkid and the whole industry.

Mi Wenjuan chose vipkid to reduce negative and increase energy: significantly reduce the cost of customer acquisition, improve the unit operating profit (UE), optimize the organizational scale, reduce the number of employees, and improve per capita efficiency.

According to the 2020 China online Youth English education market report released by the Chinese Academy of Sciences in June this year, Chinas online young childrens English training market includes North American foreign teachers one-to-one, Philippine one-to-one, small class, large class and light class. Among the first mock exam, the one to one scale accounted for 58% of the total industry revenue. And in this field, vipkid a share far more than the sum of other brands, is a well deserved industry elephant.

Second, change like Matsushita

When Matsushita helped Matsushita survive the difficulties, there are three ways of continuity: to replace the thick pillars, to eliminate with changes, to understand their adaptability.

And vipkid also ushered in a thorough and comprehensive organizational optimization and upgrading.

1u3001 To replace the rough pillars is to increase the introduction, retention and incentive of outstanding talents, and to establish a smooth career promotion channel.

No matter what kind of strategy, people are the decisive factor. At present, more than 10% of vipkid employees have masters and doctoral degrees. 6000 foreign teachers graduated from Ivy League schools, and famous teachers of rice online school all graduated from Qingbei and other famous schools.

In terms of salary incentive, vipkid is no longer in a big pot, but rewards the employees who have made contributions, so as to improve the development and incentive system of outstanding employees with more prospects.

At present, vipkids post-90s employees account for 65%, of which the post-90s employees of manager level account for 42%. At the same time, vipkid enterprise university has established a complete staff training system, covering from ordinary employees to middle and senior managers.

3u3001 To understand ones adaptive ability is to optimize the scale of the organization and improve the efficiency of internal communication and cooperation.

Since January this year, vipkid has adjusted its organizational structure. Through a series of organizational structure carding, further straighten out the relationship between different centers and departments, integrate the organizational structure, reduce organizational redundancy, and improve the operational efficiency of the organization, so as to better meet the needs of users.

At the system level, vipkid has established and consolidated the 3C system: introducing CTO to enable education with science and technology; promoting coo to build professional education service ability; introducing CFO to enhance data-driven decision-making and strategic ability.

At the employee level, vipkid launched the quarterly OKR employee assessment to clarify and track the objectives and their completion, and to make sure that the companys overall annual objectives are consistent with the individual OKR of employees, so as to improve the organizational cohesion of employees.

Half a year later, the elephant has been slimmed down successfully.

At present, the number of vipkid employees has changed from 11000 to 7500, which has doubled the human efficiency. The cost of acquiring customers has been reduced to about 3000 yuan, which is about 45% lower than that of last year.

Thin, is the appearance, strong body is the core.

The company announced that viue orange had achieved a continuous profit growth of 90% in the first quarter of 2020.

To a certain extent, this means that vipkids strategic goal of making a dollar per class is expected to be achieved one year ahead of schedule. In 2019, the founder, MI Wenjuan, proposed this goal, which was expected to be achieved in 2021.

In my opinion, what is more important than that of UE for six consecutive months is that vipkid has found a fit and balance between speed, health and sustainability.

In Zhang Yuejias opinion, the reason why the company has been able to become a regular UE for two consecutive quarters is mainly due to three aspects: first, the companys clear strategic objectives ensure the business focus and stability; second, the accumulated brand potential energy has brought the renewal rate and referral rate far higher than the average level of the industry, resulting in a substantial reduction in customer acquisition costs; third, the improvement of the companys management system and organizational changes The reform has greatly improved the efficiency of internal staff.

Obviously, the direct reason for ue to become a regular is to reduce the cost of acquiring customers. Zhang Yuejia said that after three quarters of continuous optimization, now vipkid and the markets first order about 2000 to 3000 yuan of products, the customer acquisition cost is basically the same, even lower.

For the education and training industry, the core of reducing the cost of customer acquisition is word-of-mouth referrals from old users to new users. Especially after reaching a certain scale, the tap water growth mode based on word-of-mouth communication is more precious.

The scale expansion with teaching quality has always been the strategic goal pursued by vipkid. Since the second half of last year, based on the stable pattern of one-to-one track market, vipkid has been pursuing product innovation and efficiency improvement on the basis of quality and scale.

Behind this is the correct grasp of fast and slow.

Based on this, MI Wenjuan set the target for vipkid in 2020 to be profitable.

Third, like Matsushita, he resented the illusion of victory

There is no doubt that Chinas online education market is a fertile land.

An unexpected epidemic has accelerated the transfer of offline education to online education and greatly promoted the development speed of online education industry.

According to China K12 online education market research and user consumption behavior report, due to the stronger payment ability and better online usage habits of users in the first and second tier cities, the fierce competition of enterprises in the past few years has basically occurred in the first and second tier cities.

However, after a variety of competition, the major online education companies have serious homogenization competition in terms of teachers, courses, sales channels and so on. Affected by the epidemic situation, users in third tier cities and below began to pay attention to and understand online education. It is expected that starting from the summer vacation in 2020, K12 online education brands will start to compete for users in the third and fourth tier cities.

Under the background of the development of online education, it is expected that under the background of higher quality education, higher quality education will be encouraged.

However, there has never been anything achieved overnight, everything is accumulated. For the entrants of Chinas online education, there is nothing unexpected, but preparation is long enough and enough.

At present, VIPKID, which is overlord, is actively innovating to create new competitive advantages and consolidate its status as a Internet plus education.

Obviously, the competition in this business type has not yet been fully launched. Matsushita has warned his colleagues that its ok if a product is not good, but it must be competitive. Never give the illusion that a war has been won because of the temporary results. He also cited the case of the Yamato during World War II. When the Japanese Navy thinks that it is invincible in the world, the fate of failure has come.

Maintain a 24-hour sense of crisis, Matsushita says.

For online education, the boundaries of the platform are not entirely self has the final say. Even if the core competence is established, it is necessary to have the belief to release this ability into a broader competitive space.

Zhang Yuejia told the media that if the education company can not expand its branches, it will not do much about it, and the investment efficiency will be very low. To make education profitable, we need a high enough ecological ceiling. Secondly, under the premise of industry business model convergence, competition is speed.

Vipkid started a new evolution.

Relying on the precipitated advantages of foreign teachers, brands, technology and service system in North America, vipkid seeks to further expand and strengthen the English track, and begins to launch expansion courses, aiming to seize the new market, establish a new moat, and create a second growth curve.

At the beginning of this year, vipkid officially launched the rice online school, which was regarded as an important symbol for vipkid to enter the online K12 large class class class and excellent training market. Led by double teachers and famous teachers in the north of Qing Dynasty, rice online school leads more than 50 teaching and research teachers to polish a more effective course experience.

In addition to rice online school, vipkid also launched a number of course products, such as Chinese and foreign excellent teaching and training courses, English Enlightenment courses and so on.

Vipkid needs to do more than English. According to reports, vipkid will also create comprehensive specialty courses in art, music and other directions, so as to cover the whole school-age and multi-disciplinary curriculum system.

Matsushita has already used Matsushita Electric Appliances to write a heavy ink for the history of human business, and the story of vipkid is just beginning. The common point between them lies in the concept of water philosophy, which is the moral basis for the existence of the whole industry and enterprises.

How to make social education really like tap water, the test is a company after the psychological superiority period of calm and reflective ability. For the top management team, we should always grasp two clues: one is to match the times, the other is to match the current ability.

Wait and see. (source: Dade finance, Hao yaxia) source: mass news editor in charge: Chen Tiqiang_ NB6485

Wait and see. (source: Dade finance, Hao Yaya)