Process And Effect Analysis Of Li Ning's Strategic Transformation Based On Balanced Scorecard

Since the second half of 2011,the performance growth rate of sporting goods companies has dropped significantly,the industry has entered a period of adjustment,and major sports brands have collectively encountered a large-scale closure of stores.The past extensive development model has fallen into a bottleneck,and domestic sports brands are facing Unprecedented difficulties.In addition to the mature challenges of international sports giants Nike,Adidas,and the competition of many domestic sports brands such as Anta,361 Degrees,Peak,and Xtep,Li Ning encountered a major crisis and fell from the throne of the domestic sports brand,with serious losses.In recent years,with the favorable policies issued by the state,the change in consumption concepts,and the development of e-commerce,the entire industry has begun to rebound strongly and grow rapidly.In 2015,Li Ning Company stopped the "brand reshaping" plan that started in 2011,and determined the strategic transformation with "products,channels,retail operation capabilities" as its main strategy.In just a few years,it lost 2 billion in 2012 By 2019,revenue will exceed 10 billion,and Li Ning Company has a beautiful turnaround.Therefore,this paper analyzes the motivation and feasibility of Li Ning's strategic transformation by using the SWOT analysis tool to analyze the strategic transformation of Li Ning,which began in 2015.Combined with the specific strategy of strategic transformation,it uses public financial report data and collected information to balance Scorecard tool to analyze the effect of Li Ning's strategic transformation,quantitatively and qualitatively evaluate the performance of Li Ning's financial dimension,customer dimension,internal process dimension,learning and growth dimension,etc.,and verify the implementation of Li Ning's strategic transformation Effectiveness,and found the successful experience and problems in the strategic transformation,to provide some reference for other sports goods companies in the transition period.The study found that after the implementation of Li Ning's strategic transformation strategy,the financial level and non-financial level indicators have different degrees of overall improvement,especially the financial indicators,the improvement is very obvious.However,due to the short transition time,only the short-term effects can be evaluated,and the long-term effects of the ongoing strategic transformation need to be further investigated.Based on the above conclusions,this article recommends that Li Ning Company:(1)continue to build star products and increase R&D investment in core categories;(2)promote the diversified development of channels;(3)build a digital operation system.It is hoped that the conclusions and recommendations of this study can provide reference for other sports goods strategic transformation,and also make some contributions to enrich the research on strategic transformation performance evaluation of enterprises.