Study On The Impact Of Strategic Transformation On Gome’s Profit Model

The rapid development of Internet-based technology has brought tremendous changes to China’s traditional retail industry.Gome Electrical Appliances Holding Co.,Ltd.,the leading enterprise in China’s home appliance retailing industry,Realized the leap-forward transformation from the simple store management mode to the "offline store + online e-commerce" mode.The model changes actually reflect the adjustment of the overall strategy of the company and the change of the profit model.Therefore,this article takes Gome as a case study object and explores the impact of strategic transformation on its profit model.This paper can be divided into three parts.Firstly,it sorts out the development process of Gome,interprets its strategic characteristics before the transformation,and analyzes the transformation process of its profit model based on five factors: customer scope,profit point,profit source,profit leverage and profit barrier.Secondly,it analyzes the motivation of Gome’s strategic transformation,analyzes its strategic characteristics and profit model after transformation.Finally,it combines Gome’s financial performance over the years to its financial statement characteristics and financial indicators,analyzes the impact of the transformation on its profit model and concludes that the strategic transformation has encouraged Gome’s profit model to change from the traditional model to the “offline store + online e-commerce” model,has a favorable impact on its asset size,sales revenue,and profitability,but the short-term benefits are not prominent and the increase of the enterprise value has not yet been realized.