The Study On Enterprise Growth & Strategic Transformation

The question of enterprise growth is always the core in many of strategic management theory. Although every theory's view is different in the study of enterprise question, their aim are all to teach enterprise growing more quickly and more health. In the view of enterprise's practice, no one can grow without a hitch. In their history of growth there are many risks and rough. Most of them step down from the stage of history early because of these or those reasons, and only few of enterprise can maintain the sustainable competitive advantage. In these failure enterprises, many became to decline and fall because of not dealing with the strategic transformation well.Enterprise growth is the result of competitive advantage. The stronger competitive advantage is, the more smoothly enterprise growth will be. Strategic transformation can contribute to obtain new competitive advantage, and make the advantage exist to long term. So it can promote enterprise to grow and develop further by doing strategic transformation.The type of enterprise's strategic transformation includes active transformation and passive transformation. Active transformation is enterprise take strategic transformation ahead of perceiving the potential threat. Passive transformation is enterprise forced to take strategic transformation after potential crisis become to reality. The risk of active transformation is smaller than the passive one. So enterprise should seek active transformation first in growth, then they ran cut down the cost of transformation and reduce enterprise's lost.Strategic transformation originates from strategic solidificat ion. tn some stage of growth, possibly enterprise can he successful because of choosing some strategic mode occasionally. As the mode follow, the enterprise's competitive advantage will be strengthen steadly. In this case, the enterprise will depend on the strategic mode easily, and ignore to search for other modes, make the capability of strategic innovation decrease. The enterprise's strategy will appear path-dependence heavily, make the enterprise to be locked in the mode. Finally, the strategic solidification appears. Strategic solidification won't affect enterprise directly, however, if the enterprise's environments changed greatly, strategic solidification would increase the risk of adaptability, and worsen the enterprise's whole condition.Direct inducement of strategic transformation includes external inducement and internal inducement. External inducement is the conditions of strategic transformation, internal one is the decisive factors of strategic transformation. External inducement only change the enterprise's external environment, make the enterprise fell that transformation is necessary, but whether strategic can be transferred, or whether strategic transformation can be successful, it depends on the development condition of internal inducement. So a successful strategic transformation requires the good combination of internal and external factors.During strategic transformation is implemented, enterprise should choose the opportunity of strategic transformation properly first. The opportunity is correct, possibly strategic transformation will be successful. If the opportunity is wrong, strategic transformation must be failure. The choice of exact strategic transformation style depends on the correct judgments in enterprise's growth stage and the good analysis to internal and external environment. In this case, strategic transformation will be more successful.