Application Analysis On Virtual Operation

With the development of the world economy, the market environment that enterprises facing has changed a lot:market competition became increasingly fierce; the requirements of the consumers became more and more personalized, and the requirements for the supply time of the products and the services became higher and higher; enterprises have to meet it in time in order to survive and develop in the competition. Meanwhile, after 30 years development, China’s economy has been encountered an extremely difficulty. It is necessary to transfer to a different growth model based on greater reliance for growth on domestic consumption, faster service sector development, and greater reliance on domestic innovation, the economic model of "new normal". The business model used by Chinese enterprises, especially the small and medium enterprises, has been unable to meet the requirements of economic development. The virtual operation strategy is a new enterprise strategy and mode, which requires the enterprises to abandon the non-core units, concentrate resources on the core competence, and establish the virtual enterprises with other enterprises, consumers and even operate with the opponents. It stresses the importance of agility, flexibility and dynamic. Therefore, the study of virtual business has a great significance on r business transformation in China.Through literature review, the author found that most research were based on the business and the market, the relationship between competitors, and the perspective of coordinated division; while the perspective of the internal microscopic interpretation of virtual Operation was lacking. The paper firstly sketched the virtual operation strategy, and tried to analyze the causes of virtual operation based on CVP analysis from the internal perspective of enterprise. By taking Nike and Lining as cases, the paper contrasted the profitability, operational efficiency and ability to resist risks between the two companies; and found that Nike’s profitability and operating efficiency are more steady than those of Lining, with a stronger anti-risk capability. After analyzing the operations of both companies, the author found that although the operation is quite similar with Nike in forms, Lining is not a real virtual business. Conclusions of this paper are not only enrich the theory of virtual operations, but also provide advices to enterprise transformation in China.