Research On Suning Commerce Financial Strategy Based On Enterprise Life Cycle

The constitution and composition of China’s retail industry undergoes constant changesto adapt to its economic structure changes. The online retailers compete with the entityretailing enterprises and are excelling in the market share. As a result, more retailingenterprises are stepping into the field of electronic marketing to explore business developmenttransformation. This paper analyzes the financial strategy of a representative and leadingenterprise–Suning Commerce Group Company, which offers theory and practice significancein this market setting.In this paper, the author analyzed financial strategy problems of Suning from theperspective of enterprise life cycle. Started with the introduction of literature review of thisresearch, it reviews the domestic and international research outcome towards financialstrategy and life cycle theory. The review summery has been given. Based on the theoreticalknowledge, this paper takes Suning Commerce Group as case study example. This papersynthesizes two division method of life cycle theory, the study found that the life cycle can bedivided into two phases: the growing phase and the mature phase. The analysis ofenvironment and the overall strategy of Suning Commerce Group suggested that SuningCommerce Group takes dilated financial strategy in the two periods. The difference is it takesthe steady financial dilated strategy in growing phase, but takes rapid dilated financialstrategy in the mature phase. Finally, the paper puts forward suggestions for SuningCommerce Group’s financial strategy in the strategic transformation process.