Study On The Wanning's Strategic Transition

There have been many social pressures in the liquor industry,such as incomplete objective understanding of the impact on liquor consumption,such as health,increasing traffic accidents,food safety,etc.The state's "prohibition" order,restrictions on radio and television advertising of liquor and strict levy of liquor consumption tax,the government strictly controls "three public consumption",the central "eight regulations",and the implementation of thrifty and honest government.Requirements have a certain impact on the development of liquor industry.With the decline of the operation of some catering enterprises and the decrease of the sales share of high-end liquor,liquor industry may face the pressure of decreasing terminal consumption demand,and the operation and development of liquor trading enterprises are facing greater challenges.Hangzhou Wanning Trading Co.,Ltd.operates in the 1990 s.It has a number of wholesale stores,three warehouses,Wuliangye flagship stores and general retail stores.It owns more than 400 wine items,which provides convenient supply for small and medium-sized supermarkets in eastern China.After more than 20 years of efforts of two generations,the company drives retail sales by wholesale,accumulates thin sales,relying on the professional level and mature channels in the liquor industry,it has risen rapidly.Wanning Company chooses all kinds of liquor products for local consumers.Single-product liquor can range from several yuan to thousand yuan.The liquor brand chosen by consumers at random is likely to be the distribution brand of Wanning Company.Seven out of 10 families in East China choose at least one kind of liquor sold by the company.Whatever the brand is,no matter where it is purchased,the sales team is trying to ensure that it helps the company achieve its business objectives."Better kill a thousand by mistake than let one go" is Wanning's basic strategy based on the liquor Fast-consuming market,and it is also the basic strategy that the company has always adhered to.However,since the "Eight Provisions" issued by the central government,the structure of liquor industry has changed,the supply and marketing of liquor products have reversed,liquor inventory has been degraded slowly,market and product factors have led to the decline of enterprise sales year by year,liquor enterprises' development constraints have become more and more prominent,product backlog,cash flow difficulties,financing costs are also increasing,and the integration of human resources is not coordinated.Low efficiency,insufficient "internal strength" and insufficient innovation.Wanning wants to continue to develop at a high speed when facing market tightening.It is inevitable for Wanning to transform and upgrade.At the end of 2015,Wanning decided to implement strategic transformation.Wanning Company uses PEST,SWOT,Porter Five Forces and other model tools to analyze its own development dilemma,and puts forward a new strategy suitable for the company itself,which transforms the original white wine trading enterprise into an integrated liquor production and marketing enterprise,and implements strategic transformation design,such as the design of marketing strategy,the establishment of production and operation,so as to carry out transformation and upgrading.By adjusting the company's current organizational structure and management status,strengthening the company's marketing functions,and establishing an efficient production and operation system,the company provides a guarantee for the implementation of the transformation.It is very difficult for any enterprise to survive without the sensitivity of environmental change.In the past few decades,many enterprises have been able to develop rapidly because of opportunities.Nowadays,in the new environment,both new entrants and older generations need to be prepared for transformation.Hangzhou Wanning Trading Co.,Ltd.as a typical liquor trading industry facing transformation,it is necessary to study its strategy and understand its strategic management issues.Whether the existing management system can meet the requirements of fierce market competition,and whether it can meet the needs of breakthrough development of enterprises,these are worthy of our in-depth study.The development strategy must carry out comprehensive and forward-looking research.This paper describes how Wanning Company transforms and upgrades in the liquor industry,how to occupy a place in the competition,and provides some suggestions and considerations for the strategic transformation of major liquor trading enterprises.