Study On The Strategic Transformation Of Suning

In recent years, China’s economy is facing adjustment and the recovery is weak. All kinds of contradictions and risks accumulated in the recovery are further exposed. The pressure of downward economy is getting bigger. Under the circumstances of slow rate of economy grow and impact of online shopping, China’s traditional retail industry is facing a huge crisis of survival. From 2012 onwards, the tide of closing shops is emerging. According to statistics, retail sales of top hundred large-scale retail enterprises nationwide had declined1% cumulatively and the growth rate compared with the same period last year fell by 2.5% in January 2015. It was the lowest growth rate since 2011, the development environment for traditional retail industry became worse. Reform has been an important issue for retailers to think about. HUAWEI, Lenovo and a large number of Chinese commercial giants, even if Baidu, Alibaba, Tencent and other big Internet companies, are experiencing transformation in their own way. The Internet policy dividends will continue in 2016. In the trend of internetalized, the Internet and the real economy has found a combination of each other’s advantages and it lead a wide range of innovation and change in the industry.For quite a number of domestic enterprises, the road of transformation is just like a swamp. The transformation of Suning has been a focus spot in recent years. In the year of2009, Suning, as a large domestic commercial chain enterprise, has embraced this tremendous chance perceiving the huge change brought by internet. After six years’ experience, Suning’s strategic transformation has achieved some great effect. With wisdom and courage Suning’s strategic transformation has built an open retail “highway”.From 2009 Suning transformed from a real entity to an Internet retailer and Suningyun store is successfully landed. Until now Suning has established its own core competence and advantages in logistics, finance, Internet retailing. It development becomes faster. This paper studies Suning’s process of strategic transformation by first case analysis. First, a related literature review of the transformation for enterprises and traditional retail business is presented, proving a theoretical basis for the research of Suning strategic transformation.Second, strategic operating environment before transformation, driving factors, business environment are analyzed to find the reasons for Suning’s strategic transformation. Third, it elaborates the election and measures of Suning’s strategic transformation in order to trace for desirable experience, then finding the insufficiency of Suning’s strategic transformation and proving some suggestions. Finally, it summarizes the whole process of Suning strategic transformation and perceives the future development direction of Suning.