A Study On Corporate Strategy During The Transformation Period

In recent years, the business model of household building materials circulation industryhas swifted from street bazaars and market stalls to department stores alike. RS——awell-known household building materials circulation industry enterprise——had seizedthe opportunity to get rapid development. It also gave full play to the presidentialsystem and family business management mode. Although outstanding achievements hadbeen made, the market structure in which had quietly changed, the originaldecision-making and management models would no longer meet the business needs offuture development. Therefore, the enterprise was facing the topic on how to face thetransformation and how to study and formulate corporate strategy during thetransformation period.The study analyzed the opportunities&threats, strengths&weaknesses of thecompany by using SWOT analysis framework and concluded that it is necessary for theenterprise to seek transformation.Under the study,the enterprise would seize the nextthree critical transition period, stick to the first corporate role of B2B2C in domesticdistribution industry, make all the operating modes innovation spread to the industrialchain upstream and downstream enterprises to provide a platform to expandservices.Quantitative decision models had been used to justify above view.By usingfinancial forecasting techniques, the enterprise drew its overall strategic objectives ofthe enterprise during the transformation period, that was to open150stores on anational scale, to complete a household materials circulation of e-commerce platform inthe first place, to become the leading operators of home improvement and hardcoverroom service, to achieve more than9.4billion yuan and1.6billion yuan on operatingincome and net profit respectively, to achieve total assets and net assets scale up to35.1billion yuan and13.4billion yuan respectively. To realize the overall strategicobjectives, the balanced scorecard tool was used to design strategic objective system.Atthe end,the strategic map tool was used to develop and maintain a long-term, lasting andunique competitive advantage of the company as a guarantee the success of strategictransformation.