Study On The Innovation Strategy For CH In Ages Of Internet

With the coming of the ages of internet, great challenges, as well as great opportunities have been confronted with businesses. Being different with traditional business times, in ages of internet, principles of businesses have been changed to provide whole solution to customers, logics of business to be dependent on bases of consumers, fulfilled with M&A and competition across industries and sections. Under this background, this paper is based on research and study on one of the typical traditional companies, CH, and examined the survival condition of those traditional companies, in pursuit of exploring the new ways of coping with technical innovations and business model innovations in the ages to internet. According to CH’s true facts, using strategic tools such as SWOT Analysis, a new solution of "Innovation Driving Strategy" based on technical innovation and business model innovation is suggested.This paper first of all introduced the technical innovation history of CH, explaining the importance of technical innovation to its development. Meanwhile, starting from the study on business model of those successful companies, the paper also demonstrated the importance of business models in ages of internet. Then, this paper analyzed the strength and weakness of CH and the opportunities and threats of CH, concluding with a proposal on CH’s future strategy, the smart strategy exploring both the technical innovation advantages and business opportunities. Next, with discussion on CH’s possible path on technical innovation and business model innovation of smart strategy, this paper specified the steps CH should take to implement its smart strategy. That is, while improving the level of smartness of various terminal products, the synergy across the product categories should be enhanced to form the basis of Smart Home system. Then based on this Smart Home system, using data mining and coordination, CH should exploit the possibility of Smart Community and Smarty City. Lastly, this paper designed the organizational structure matching this smart strategy. This structure is based on the construction of new capability platform and product-manger-based mechanism, to satisfy the requirements of quick response posed by the ages of internet with improved innovation atmosphere inside companies.With the implementing smart strategy, CH will be able to capitalize the synergy and coordination among various product categories, to accumulate its consumer’s basis, to cultivate its consumers’ behaving habits, to innovate its products and business model, realizing the strategic objective of being the leading brand of smart home appliances and electronics in the coming three to five years.