Research On Midea Group’s Strategic Transformation And Its Performance

Since China began its reform and opening up in 1978,China’s manufacturing industry has achieved unprecedented development in more than 40 years.However,with the economic development,China’s labor cost is rising year by year,and many low-end manufacturing industries are gradually transferred to Vietnam and other Southeast Asian countries.Relying only on the traditional mode of production and operation can not maintain the stable growth of manufacturing industry.Facing this situation,China’s manufacturing industry must first gradually change its business model through the strategic transformation of enterprises,and integrate the transformation and upgrading into the future development plan.In 2015,China issued the Made in China 2025,which established the policy of innovation-driven,qualityoriented,green-oriented and talent-oriented,and explicitly promoted the development of the manufacturing industry through the in-depth combination of informationization and industrialization.The promulgation of "Made in China 2025" is an important signal for China to become a manufacturing power from a manufacturing power.Midea Group,as a leading enterprise in China’s household appliance manufacturing industry,began its own strategic transformation as early as 2012 and basically realized the intelligent transformation of the industry through four stages.Therefore,this paper will take Midea Group as an example to study its performance in the process of strategic transformation by analyzing the reasons for its choice of strategic transformation,the process of strategic transformation,and the analysis based on financial indicators,economic value-added and nonfinancial indicators,hoping to provide help for household appliance enterprises who want to carry out strategic transformation in the future.By analyzing the reasons and process of Midea Group’s strategic transformation and the impact on enterprise performance after the implementation of strategic transformation,the following conclusions and enlightenment are drawn: firstly,the analysis of the reasons for Midea Group’s strategic transformation proves the necessity of Midea Group’s strategic transformation.Secondly,the multi-step strategic transformation of Midea group and the impact on enterprise performance after the transformation illustrate the effectiveness of Midea Group’s strategic transformation.At the same time,in the research process,it is not difficult to find that although it is very necessary for manufacturing enterprises to carry out strategic transformation,the effectiveness of strategic transformation may not be reflected quickly,and even affect the revenue of enterprises.Therefore,enterprises should consider whether they can bear the consequences of transformation failure when carrying out transformation.Finally,based on the research,this paper puts forward the enlightenment that is helpful to the transformation and upgrading of other household appliance manufacturing enterprises and other traditional manufacturing industries,that is,change the concept of management,realize the importance of transformation,actively improve the level of production intelligence,and pay attention to the interaction and synchronous development of online and offline.