Research On Investment Strategy Of Suning Commerce

With the progress of The Times and the development of science and technology,the Internet has entered every field of our life.Due to the rise and popularization of e-commerce,the traditional business model is no longer suitable for the development of enterprises.Hence,enterprises must modify their business models with the consideration of their characteristics.As the "leader" in the retail industry,Suning has a wide range of products,covering traditional household appliances,department stores,consumer electronics,books,virtual products,commodities and other comprehensive categories.In the electricity business era,Suning Commerce combined with their own characteristics,changing from the traditional chain retail business model into O2 O business model.Suning Commerce also adjust their investment strategy,which obviously promote the enterprise value.The article selects the case of “Suning Commerce business model change drives investment strategic transformation”as the research object.From the perspective of enterprise value,this artice analyzes the enterprise investment strategies modification and the reason of this modification after the transformation of the Suning O2 O business model.This article also analyzes changes in the corporate market response,financial and non-financial indicators after the strategic transformation of investment.After the above inquiry,this article draws the relevant conclusions about the necessity and adaptability of “Suning Commerce business model drives the transformation of investment strategy”,as well as the impact of corporate investment strategy transformation on the enterprise value.This paper finds that the O2 O business model ofSuning Commerce has transformed the enterprise investment strategy from three aspects: profit model,resource allocation and competitive advantage.Driven by the O2 O business model,Suning's investment strategy for e-commerce has taken a shape change from three aspects:investment objective,investment asset and investment range.The investment target has shifted from return type to growth type,which is the shift from scale effect to smart retail.The investment assets change from heavy assets to light ones,which is the change from store sales to online and offline sales.Besides,the investment range shifted from specialization to diversification,which is the shift from the traditional appliance retail to the diversified Internet(ecosphere).The transformation of Suning Commerce's investment strategy is beneficial to the enterprise to improve its operation ability and solvency.It is conducive to the synergistic effect of enterprises in purchasing,warehousing and sales.From the perspective of market,financial and non-financial perspective,the transformation of Suning Commerce's investment strategy helps to improve the enterprise value.The innovations of this article are as follow: It explores why the business model of Suning Commerce has an impact on investment strategy(from the theoretical and practical aspects).In addition,it also probes into what is the influence of the O2 O business model of Suning Commerce on investment strategy(from the perspective of business model driven investment strategy).The theoretical contributions of this dissertation are as follows: It can improve the theoretical research on the composition of investment strategy.Besides,it provides an example for the transformation of the Chinese retail industry.