Research On The Resource-Orientated Development Strategy Of Traditional Department Stores

With the reform and opening-up deepening, great changes have been taken place in Chinese retailing market. For instance, many new retailing forms have sprout out accompanied with innovations in operating model. Especially, after China entry into WTO, the opening-up pace of retailing market would be obviously widen. Not only foreign retailing companies bring scientific managing way with them, but also they prick up competition. Under this ground, Chinese traditional department stores have already faced many threats. So department stores shall adjust strategy, transfer conception, make use of advanced technology, and fully explore its own resources and capabilities, to achieve competence improvement. The purpose of this paper focuses on how to improve traditional department stores' competence at all through using its own resources and capabilities, creating and utilizing economics of scale and scope. We consider that economics of scale is the corner stone for development and chain operation is the shortcut to reach success. In the future, the department stores' merger and regroup is inevitable. By this way, it can relatively centralize the competitive advantage of the industry and enhance the whole competence. Furthermore, department stores shouldn't adhere to old business, but exploit new retailing forms with chain operation.Guided by this research idea, we do some research work. Firstly we analyzed the macro circumstance for the traditional department stores. After that, we evaluated the resources and capabilities of traditional department stores. In this point of view, we bring forward the strategic thought of positive feedback strategic system. As the result, we conclude that Chinese traditional department stores should adopt the strategy of related diversification and chain expansion based on resources and capabilities. Finally, we designed an organizational structure and the balanced scorecard evaluating system for the implementation of this strategy.