Research On The Effect Of Strategic Transformation Of CTG DUTY-FREE Under The Background Of Duty-free Policy

The development of China’s duty-free business started late and is now under the centralized management of the State,and the State is also relaxing its policies and making greater efforts to promote the development of duty-free business.With the introduction and implementation of a series of favorable policies encouraging the development of duty-free business,the duty-free business has entered a period of rapid development.The issuance and implementation of the Announcement on Adjustment of Individual Annual Transaction Limit Policy,the Supplementary Notice on 7 Import Taxation Policies including Unified Management of Duty Free Business,the Announcement on Duty Free Shopping Policy for Hainan’s Outlying Island Passengers and other preferential policy systems have not only brought the duty free business segment into the limelight in the capital market,but also made the specific development of duty free business more advantageous.In the current market environment where China attaches great importance to stimulating the domestic systemic circulation,due to the gradual relaxation of duty-free policies,the return of overseas consumption expected by various industries no longer seems to be an unattainable thing.So far,the duty-free business may become a new growth point for the performance of the companies concerned,and the transformation and development of duty-free business by tourism enterprises becomes their main choice,it is worth exploring whether this transformation can bring benefits to the company,and how to successfully transform has become a highly concerned issue for enterprises at this stage.CTG DUTY-FREE is a tourism enterprise that operates both tourism service business and duty-free business,and the scale of the enterprise operating duty-free business has been expanding in 2017 and 2018 by acquiring the operation rights of strategically important airport duty-free stores through mergers and acquisitions and winning bids.Further,because of the low gross margin of the traditional tourism service business,CTG DUTY-FREE has focused on the duty-free business in its choice of business strategy.It ceded CITS in 2019 to avoid intra-group competition in the same industry,complete the optimal allocation of the enterprise’s limited resources,and achieve strategic transformation.This article takes CTG DUTY-FREE as the research object,and most of the existing literature focuses on its traditional tourism service industry,thus the innovation of this article is to study the strategic transformation of CTG DUTY-FREE focusing on duty-free business,not only does it enrich the theoretical analysis related to the strategic transformation of tourism enterprises,but it also helps the government guide the transformation and upgrading of enterprises,and has certain guiding significance for the implementation and improvement of duty-free policies.This article mainly adopts a combination of theory and cases to analyze.Firstly,it analyzes the mechanism of strategic transformation of enterprises,explains the influencing factors of strategic transformation of enterprises,cites three main strategic transformation paths,and analyzes how strategic transformation affects the effects of enterprises;secondly,it describes the basic situation of CTG DUTY-FREE,analyzes the enterprise situation of CTG DUTY-FREE through strategic analysis tools,and then analyzes the reasons for its transformation.Finally,the market and financial effects of CTG DUTY-FREE before and after the transformation are calculated and explained by combining the analysis of short-term market response,long-term market response and financial indicators of the company.Through the analysis of the case of CTG DUTY-FREE,it is concluded that CTG DUTY-FREE has carried out strategic transformation in compliance with the national duty-free policy,stripped the original tourism business of CITS,and focused on the development of duty-free tourism retail,which has achieved positive market effect and improved the financial effect of the enterprise.This measure helps to improve its core competitiveness.Further draw the inspiration of this article: First,tourism enterprises should peel off the business at competitive disadvantage under the condition that conditions allow,to avoid the risks brought by blind expansion;Secondly,tourism enterprises need to focus on developing advantageous businesses and improve their core competitiveness;Thirdly,when the conditions are met,tourism enterprises should take the initiative to implement strategic transformation and choose the strategic transformation path suitable for their own actual situation;Finally,tourism enterprises should improve their ability to respond to changes in national policies,adjust their development strategies in a timely manner,and seek breakthroughs in corporate profits.