WD Group’s Business Model Research On Innovation Strategy Based On The Background Of Rapid Rise Of Electronic Commerce

This paper is a monographic study on the development of enterprise. Under thebackground of electronic commerce impacts on the traditional business model, this thesiswill study and solve the strategic issues for the development of the real estate industrygiants——WD Group based on the strategic management theories and methods. Throughthe analysis and comparison between the commercial model of electronic commerce andthe commercial model of commercial property, the author hope to define the opportunityand challenge for WD Group and put forward the corresponding strategy andimplementation measures.With the rise of electronic commerce，electronic commerce enterprises are graduallyincreasing share of traditional retail market, and they have constantly influences on thetraditional business model, the operating pressure on commercial property enterpriseswhich set the physical store as its only source of profits become bigger, even if it is WDGroup which is the leading enterprise in the field of real estate has to face a lot of realproblems: pressure of enterprise operating cost control, choice of retail formats,differentiation competition and so on.Firstly, this paper analyzed WD’s external strategic environment; secondly, analyzedWD’s internal strategic environment from the aspect of enterprise resource conditions,management ability and financial situation to determine WD’s core business and coreability; thirdly, this author used value chain analysis to define WD’s basic activities andsupporting activities, then compared the business model of TMALL (Taobao Mall) andWD to find the similarities and differences between two business models; fourthly, usedthe theory of SCP to analyze the impacts on traditional business imposed by electroniccommerce through three aspects: enterprise behavior, operating performance and industrystructure, and carried out a concrete analysis on three aspects: retail format, F&B format,leisure entertainment and culture format; fifthly, applied SWOT analysis to know WD’sopportunities, challenges and the advantages and disadvantages in the competition. Finally, the author established innovation strategy of WD’s business model according to the theoryof enterprise competition strategy.In a word, this thesis finally solved the problem that under the background of rapidrise of electronic commerce, which way WD should choose so as to make the most of itsown advantages and reduce potential risk to obtain more space for development.