Research On The Strategic Transformation Of LP Enterprise

The strategic transformation is a process in which enterprises, facing complex dynamic environment (include macro environment and micro-environment), evaluates the existing strategy by analyzing its own resources and abilities to ensure continued growth and survival through reformation of its strategy. Small and micro enterprises are limited by manpower, material resources and financial resources; their competitive power is at a disadvantage in the fierce competition with large enterprises. The problem demands a prompt solution requiring research on strategic management, how enterprises make the best use of their characteristics skillfully and implement the strategic transformation successfully to seize opportunities in the market and grow rapidly.In this study, the author used Porter’s Five Forces Model, PEST and SWOT tools to analyze both the internal and external environment of the LP Enterprise to work out the transformation strategy suitable for the resources and abilities of the LP Enterprise based on the theory of strategic management and transformation. The paper made the empirical research on the strategic transformation from the direction, process, path, and opportunity, etc., and found that the core advantages of the LP enterprise in competition are the in-depth understanding of the value chain and rich operation experiences in mobile value-added service industry. Combining with the environment and resources of LP enterprise, it suggested the transformation direction of the LP enterprise was related diversification instead of unrelated-diversification. Detailed functional strategies were then set up to support the transformation strategy. Finally, measures and suggestions were given to solve the potential problems may come out in the transformation. The author hoped this research could offer some experience, which maybe has reference meanings for the strategic transformation of the small and micro enterprises.