The Research On The Mode Of Extension And The Precaution Against The Risk Of The Retail Enterprise

It is the necessary choice for an enterprise to expand its scale when it develops tosome extent. Today, all the powerful enterprises choose to enlarge their scope in order toachieve the scale, the market share, and the competitive advantage. The scale expansionis gradually becoming the new focus in China retail market, many enterprises pay moreattention to the scale expansion to grow and increase the economy benefit. Unfortunately,the theory and models in existence fail in helping retail enterprises to expand rapidly,meanwhile escape the trap and risk, as a result, many enterprises have got in the dilemma.Therefore, it is meaningful for us to explore new principle and new models.On the basis of fundamental theory and the practice, firstly, this paper reviews thebasic issues such as the essence, mechanism, categories, and performance of scaleexpansion. In the progress of expansion, we should make sure that it is the certain trendfor an enterprise to enlarge its scale, which can help us to understand the power and thecurb of extending, to realize the temporary inbeing of the optimal scale, and then weshould break the present balance and look for all the condition to further expanding. Onthe one hand, in the process of market exchange and expanding of enterprises, we oughtto make the economy comparison among the single store, the branches and the all-in-onestyle externally, rationally and scientifically, on which we can make a good decision. Onthe other hand, the coordinate cost can be decreased depending on the technical progress,the organization innovation, the improving level of decision-making, the reduction ofmistake, or getting the material on a low price. If one enterprise can reach this, it willobtain the key factor for extending and overstep the best borderline to expand again.Secondly, concerning the successful practice of expansion of internationalenterprises, this paper steps into some key matters, including the reason for expand, thepattern, the expanding trap and the methods preventing risk. Besides, it takes our ownpractice of those enterprises who are in the stage of growing into consideration, and findout that we should deal with the fundamental questions such as the strategy orientation,the control of the scale and the speed of extending, and the wise choice of the strategy.Then, on the basis of analysis of the present situation in China' retail market, it gets theproper extending model and the strategy for our retail enterprises.The empirical analysis on competitiveness of detail enterprises based on the "size effect" In order to research into the inherent principle, this paper empirically analyzes thecompetitiveness of scaled detail enterprises using the method of econometric model. Firstly, itenters into the competitiveness of detail enterprises, demonstrating the relationship betweenscale and competitiveness. Secondly, the indices system and the method for evaluating thecompetitiveness are established here. Thirdly, based on the dynamic way, this paper obtain theevaluation model for detail enterprises' competitiveness and the competitiveness rank of thedetail enterprises which have come into the market, and further concludes that scale is one ofthe most important factors to enhance the detail enterprises' competitiveness.