Research On The Development Strategy Of KG Company Under The New Retail Background

Since the economic reform,the living standard of domestic residents has been continuously improved;the traditional eating habits and food consumption structure have also changed.The demand for baked goods as imported products are increasing,and the baking industry also shows a faster development trend than other food industries.KG,a typical enterprise in the baking industry and was established in August 2005,has become the leading baking brand in Central China,after more than ten years of rapid development.But recent years,KG Company also begun to face a lot of problems in the development of business.First of all,compare to the increasing new stores,the investment benefit is declining.In addition the large number of stores has led to a large expansion of operation management cost,which has engulfed the original profit.Furthermore,more and more "net red" brands are rapidly replicating and infiltrating KG's success story with their capital strength,and penetrating into the core business area of KG.Market competition has been increased significantly.In order to study the above problems,this paper,took the domestic and foreign baking industry as the research background,based on theories of the new retail industry,the net red economy and the strategic management,combined the macro environment and the development trend under the new retail environment,discussed the common characteristics of the domestic baking enterprises under rapid changes of the external environment.At the same time,KG group is selected as the main research object.By combing the internal resources and ability of KG Company,the advantages,disadvantages,opportunities and threats of KG are compared and analyzed,and the corresponding strategic matching is carried out.Finally,by analyzing the case study,the key strategic objectives of this paper are concluded: to achieve synchronized growth of sales revenue and profit margin,the company shall start from market competition,be driven by customer requirement,establish regional leader brand by brand expansions,cross industry development,diversified layout.To be more specific,in the competitive strategy,occupy the middle and high end market by the overall cost leading and the differentiation strategy of the subdivision domain;in the function strategy,by construction of the talent echelon,promotion of information level,further integration of supply chain resources,to realize the three changes of the company,namely,the transformation from product as the Core to customer as the Core,from Talent management to system management,from Experience driver to data driven,and finally to realize the innovation and rapid growth of KG company.