The Strategic Transformation Of Hunan Guoxiu Group Under Dual Circulation

Enterprise strategic transformation is the overall transformation of the enterprise in order to obtain long-term competitive advantage when the past strategy is no longer suitable for the new environment.Enterprise strategic transformation includes the transformation of the enterprise’s business direction and operation mode.With the start of the Sino-US trade war,coupled with the impact of the epidemic on domestic production and international trade,the survival of export-oriented companies has become precarious.The past strategies are no longer suitable.Only strategic transformation can find survival for companies.This article takes the strategic transformation case of Hunan Guoxiu Group as the research object.Based on the first-hand information provided by the enterprise,the survey and interviews with the chairman of the enterprise,and various news reports of the enterprise in recent years,it describes the change from the establishment and the heyday of Hunan Guoxiu Group.In the whole process of the transformation after the decline,the focus is on how the Hunan Guoxiu Group recovered from the blow of the loss of the international market,how to implement a strategic transformation under the double blow of the Sino-US trade war and the COVID-19 epidemic and how to find a new way for Hunan Guoxiu Group to survive.After the international market was blocked,the government proposed a dual circulation of domestic and foreign markets strategy.In response to the government’s call,Guoxiu Group began to develop the domestic market in multiple ways,including entering the "Vegetable Basket" project in the Guangdong-Hong Kong-Macao Greater Bay Area and expanding online sales.At the same time,in order to meet the diversified needs of the domestic market for fruit and vegetable products,Guoxiu Group has expanded its business scope in time,starting from the single canned food field in the past to integrate the four major categories of tea,catering,canned food and snack foods.Also,Guoxiu Group increased R&D investment to meet the needs of domestic consumers.What’s more,Guoxiu adjusted the internal structure and increased the proportion of the domestic sales department,trying to fight a beautiful turnaround.However,the initial transformation effect was not good.Faced with the difficulties of transformation,Guoxiu Group needs to make a new decision on the direction of strategic transformation,and strive to find a place to survive in the fiercely competitive domestic market.This article analyzes the types and reasons of Guoxiu Group’s strategic transformation,and at the same time,combines theoretical knowledge to analyze the possible transformation directions and implementation of the transformation.This article studies a small transformation case.But through in-depth analysis,it can draw the process and management experience of Hunan Guoxiu Group’s strategic transformation,summarize the experience after transformation under the background of dual circulation,and help it in the future.It also provides experience for other domestic companies which have been sluggish in the Sino-US trade war and the COVID-19 epidemic,helping them find a new way in the disadvantaged environment under the dual circulation of domestic and foreign markets strategy.