With the rise of the Internet and electronic commerce in the nineties of last century, the online bookstore and e-books have become a new fashion trend into people’s life. The rapid rise of electricity suppliers to make physical bookstore lost its uniqueness. People are changing the way of reading, coupled with high operating costs, stiff institutional mechanisms and other issues, physical bookstore into an unprecedented predicament.Xinhua Bookstore-this was once known as the overlord of the national monopoly of the book industry, but also failed to keep its position. From advocate Nationwide Reading to construct scholarly community, the physical bookstore is not only just a place to sell books but also play an important role in cultural disseminator. Faced with such challenges, as the leading state-owned Xinhua Bookstore should take the lead in the transformation and upgrading, to lead the physical bookstore out of a broad road. This article will take the Xinhua bookstore as an example to study the transformation and development of the physical bookstore.This paper summarizes the advantages, disadvantages, opportunities and challenges of Xinhua Bookstore in the current network times by using the SWOT matrix analysis method, has analysis the its present situation. Based on "Use and Satisfaction Theory" to explore the new mode of service innovation in Xinhua Bookstore. This paper mainly uses questionnaire survey, field survey and in-depth interview method. Positioning the reader’s needs through the results of the questionnaire survey. To obtain useful information from the investigation and research in Henan Xinhua Bookstore and in-depth interviews with the person in charge of it. On the one hand, the Xinhua bookstore needs internal innovation: improve the enterprise system, to achieve diversification, expand sales channels and develop e-commerce. On the other hand, the Xinhua bookstore needs the external support of national policy. Such as reserving space for physical bookstore in the urban construction, proposing the tax cuts, and setting the price of book by law. In this paper, we attempts to combine theory with practice, and put forward our own views and suggestions, to provide reference for the further development of the physical bookstore during the transition period. |