Research On The Transformation And Upgrading Of Traditional Business Model Based On Enterprise In O2O Era

The O2 O era is a new breakthrough based on the rapid development of internet, which has realized the integration of online and offline world. Especially the traditional retail industry belongs to the mature stage of the development in the industry and faces stagnation. At the same time, facing the serious homogenization the trend change of consumption, the rising costs, the profit decline and other problems, plus the invade of online competition, the traditional retail enterprise can’t wait to seek the new development mode in the new economic environment. The business model is designed to provide value for customers in exchange for the return of value. The essence is the aggregation of a series of value creation. But the value chain theory reveals the competition between enterprises, which not only contains a link to create activities in the value of the enterprise competition.If the enterprise wants to obtain the competitive advantage in the competition, the need for transformation and upgrading the reengineering of the business model is very urgent. Therefore this study focuses on the business model innovation and change, in an attempt to explore the maximization of enterprise value and gain competitive advantage from the perspective of strategic management based on value chain theory mode method.This paper first reviews the definition, elements, evaluation and change of business model about the domestic and international study status. Then it combines the acquiring of the enterprise economics rent from the innovation theory by Bear Pete, together with the evolution of value chain theory by Michael Potter. At last, it points out the transformation and upgrading of business model which is actually the transformation to a series of value activities, and it is the integration of internal and external resources and the interests of the enterprise stakeholders. On the basis of that, it sums up the connotation of the business model and the conceptual model with seven elements in O2 O era. At last it puts forwards the standard about successful the transformation and upgrading of business model. Secondly, the paper conducts a single representative case study about the transition from Su Ning to Su Ning Yun Shang. It begins to analysis the importance of a clear strategic positioning and resources integration, ending with the implementation of correct transformation measures. Then it discusses the strategic transformation process which relates to open platform, the technology application about cloud computing and large data as well as organization framework. On top of that, it summarizes the problems in that transition. Then it refers to that the transformation and upgrading of business model is an optimization and innovation about a series of value creation activities based on value chain theory. Also it is an adjustment and reform of operation model in the internal enterprise. And it is also the repositioning of the value proposition. It is the pursuit of diversification in profit model. Therefore the seven elements of business model is essential under the background of internet, which is creating value completely and efficiently. The transformation and upgrading of business model provides reference for the traditional retail enterprise who face new challenge and in a dilemma.Finally, the paper through the integration of the transformation and upgrade in the business model, obtain a conclusion as the follows. The traditional retail enterprise needs to know their own situation and make full use of their internal recourse, together with external stakeholders, then formulate the suitable strategic position and provide the maximum value of the products and services to formulate a unique competitive advantage in the process of transformation. Especially in the transformation of the traditional retail entities stores and logistics, try to transform and adjust the function. Also in the channel, it transforms from single channel to multiple channels. They should take the customer as the center, achieve the multi contact communication throughout the whole value chain, and optimize the supply chain with information, so that it can lead the transformation and upgrading of business model in the traditional enterprise and win a competitive advantage. At last, it can achieve the profit maximization.