The Research On Transformation Strategy Of Suning Commerce Under The Background Of New Urbanization

The Chinese Government has studied the urbanization for quite a long time. The new-type urbanization has been upgraded to a national strategy by the new central government in the new era. In the planning of new-type urbanization, one hundred million rural populations will be migrated from the countryside to the city, which provides strategic support to the national strategy of Expanding Domestic Demand. To a large degree, the new-type urbanization brings the upgrade of the consumer market, both on demand and on supply. Under the background of consumer upgrading and the impact of Internet, Suning Commerce Group, a symbol of traditional offline retail chains, started the overall strategic transformation. This thesis focuses on the research of the transformation strategy of Suning Commerce. At the beginning of 2013, Suning Group officially launched an internet-based retail model, which is called "Cloud Commerce Model". To build its retail-based closed-loop system and eco-system, Suning spared no effort to strengthen core clements including logistics, IT and finance, expecting to lead the future of 020 retail industry.This paper uses Michael Porter’s Five Forces Model, PEST Analysis Model and SWOT Analysis Model to analyse Suning’s Transformation Strategy, focusing on its four major supporting sub-strategies including Internet Strategy, Opening Platform Strategy, Whole Channel Strategy and Whole Category Strategy. Through the research, this paper draws the following two conclusions. (1) Suning Commerce has selected a suitable transformation strategy at the right time. The strategic transformation conforms to the successful transformation path and characteristics of most western enterprises. It will become a classic transformation case, which benefits other traditional offline retail enterprises while transforming to 020 model. (2) Within Suning’s closed-loop system, Suning.com, the online platform, is the last and only strategic short board, which will also become strategic short board for other similar enterprises while transforming to 020 model.