Research On Strategic Transformation Of Entrepreneurial Enterprises

Today’s China, private enterprises grew as a result of the change in China’s economic system from planned economy to market economy. In this difficult yet uplifting process of transformation, private enterprises show its strong vitality; in particular are many startup companies. These startups are results of China’s market economy environment, even without much policy protection, no monopolistic resources, and lack of stable R&D investment. Few people would believe that in ten years time, startups will be very active amongst the Chinese market economy; no one can ignore their existence.The birth and development of startup companies does not have a long history in China. Due to the limited available resources and changes in the internal and external factors, the development process is bound to face greater challenges. Especially in management practices, the personal factor remains the most critical factor. And in the course of development, startups needs to constantly adapt to market dynamics and external environment changes. To ensure sustainability, startups must assess its own resources, size and ability, and make appropriate adjustments to original strategies and implement strategic transformation. In order to survive in an uncertain environment, seek sustainable development, startups needs to choose strategic transformation.Transformation has become the hottest topic in the last two years. Many researchers pay more attention to the transformation of large corporations, family enterprises and celebrity enterprises, but less attention to the strategic transformation of the smaller startup businesses. Now a large number of startups group transformation developments is a question worthy of our attention. DC Company is representative of the many startups as a research subject. In this paper the author’s analysis is based on domestic and foreign research results which have been obtained with the use of strategic management, strategic transformation and company life-cycle theories and other similar theories, combining theoretical analysis with empirical data to obtain analysis results in the studies of strategic transformation for startup companies. By looking at DC Company’s current situation, course of development and existing problems, from the planning of strategic transformation to the implementation of the strategy, we will apply Potter’s five forces model and SWOT analysis to analyst DC Company’s development and transformation. Conclusions will be drawn on strategies for startup companies in different stages of development. The necessity of strategic transformation, while gaining some practical experiences from the discussion.