Research On The Strategic Transformation And Financial Effect Of Sports Industrialization Of Sports Shoes And Apparel Companies

After the Beijing Olympic Games in 2008,the sales of sports shoes and apparel products in China lacked motivation,and the inventory crisis intensified,besides,foreign brands became more and more popular among the people.So sports shoes and apparel companies reversed their dilemmas through strategic transformation,increasing the market share.At the same time,in order to further enhance the international competitiveness of China's sports industry,our country had promulgated relevant regulations and opinions to support the development of the sports industry.The K-Bird actively responded to the policy call and took sports industrialization as a strategic transformation goal.But whether sports industrialization can bring good financial effects to the K-Bird requires further research.Based on the analysis of the development status and trends of China's sports shoes and apparel industry,this article makes an in-depth analysis of the motives,paths and financial effects of the K-Bird's strategic transformation of sports industrialization.First of all,the relevant literature and theories are sorted out,and the motivation and path of the K-Bird's strategic transformation of sports industrialization are elaborated.The SWOT analysis method is used to construct the strategic transformation matrix of the K-Bird which concludes that it cannot give full play to its own advantages.Secondly,the process of the strategic transformation affecting the K-Bird's financial effect is analyzed from a theoretical perspective,and then the financial effect is evaluated by using the study methodology,financial index analysis method and economic value-added analysis method.In view of this,some investment mergers and acquisitions carried out during the strategic transformation of K-Bird had made the cumulative excess return rate of stocks show a downward trend;in the long run,profitability,solvency,operating capacity,and development capacity continued to decline,and were gradually lower than the industry average,what's more,economic added value dropped sharply in the later period of transformation,and corporate value was weakened,which showed that the strategic transformation of sports industrialization had not brought good financial effects for K-Bird.On this basis,this article further analyzes the reasons for this financial effect from a macro perspective,and finds that the reasons are that the riskof the K-Bird's strategy selection is high and unclear,the path of the strategic transformation is unreasonable,the dealer model has not been rid of dependence,and the main business brand development has been ignored.Finally,combined with the research conclusions,it is suggested that China's sports and apparel companies should make appropriate choices in strategy transformation,not blindly expand,reduce dependence on dealers,and strengthen brand design.