Research On Business Model Innovation Of CJ Construction Material Company

Since the start of the 21 st century,stagnating and conservative enterprises have to live in an increasingly reduced space.They are doomed to become obsolete for their outdated management modes and corporate strategies.The business model innovation has served as a good remedy and a key for traditional enterprises to regain competitive edge and a crucial factor deciding the competitiveness of enterprises in the future.In the particular times,the concept of “business model innovation” has become increasingly eye-catching and important.Traditional enterprises can only rely on the business model innovation to complete their strategy transformation and become stronger enough to respond to the challenges of globalization,informatization,intellectualization and personalization.Only through reforming,innovating,transforming and upgrading their existing business models can those traditional enterprises suffering from decelerated or negative growth find a new driver of growth at a certain stage in the future and maintain the operation of the enterprise,so as to obtain sufficient and sustaining capital to explore and occupy the market and to ensure their survival,development and competitiveness.A number of researches on the business model innovation have been made and built a solid theoretical basis.However,few of them focus on the ideas and methods of the business model innovation of traditional companies in the construction material industry.Taking CJ Construction Material Company as the study object,this paper comprehensively expounds the theories of business models and their innovation through consulting a large number of relevant literature and takes relevant theoretical review of the business model innovation as the basis to lay a foundation for the following practical research on the business model innovation;and then,the currently most popular business model canvas is adopted together with such methods as case study,literature research,qualitative analysis and Porter's Five Forces Model to analyze the macro-environment,existing problems and competitive environment within the industry of CJ Construction Material Company;at the end,based on all of the above research conclusions,this paper puts forward means of innovation,and business model innovation schemes and implementation strategies that are suitable for the company and provides appropriate supporting measures to ensure the implementation of such schemes and strategies.The author holds that CJ Construction Material Company should select a suitable business model for innovation based on its core resources,advantages and abilities to focus on the innovation in strategic planning,profit model,channel,team structure and financial pattern,transform from a traditional construction material merchant and an industrial property developer to a diversified service provider integrating “platform + base + supply chain”,effectively give full play to its advantages of entity base,integrate the key advantage of resources,introduce advanced technology,change its original business model and realize a new business model of “on-line and off-line” industrial ecosphere,thus meeting the demands of customers,maintaining sustainable competitive edge in its industrial value chain and actually realizing its improvement,development and growth.The achievement of business model innovation of CJ Construction Material Company will also promote the development of the whole construction material industry.