The strategic decision of enterprise transformation is rooted in its profound motivation. Enterprises are often due to the decline of their competitiveness and competitive advantage in the industry, prompting enterprises to improve their capabilities in the industry through organizational changes;
Or because of the decline of industry, the development prospect of enterprises is dim, forcing enterprises to actively or passively adopt the strategy of industrial transfer, seek new economic growth points, and make enterprises gain new vitality. This kind of cross-industry transfer may be that the enterprise retains the business of the original industry, and the diversification strategy may also be to completely withdraw from the original industry and all enter the new industry.
Extended data:
Driving factors of enterprise transformation and upgrading:
1. New profit path: Many enterprises in the electronics, automobile and chemical industries have been transformed for this reason. When the market share and company size reach a certain level, the company finds that its profit return and stock value are not satisfactory. These companies often choose to abandon low-cost products, turn to innovative and differentiated products, or focus on some fast-growing markets.
2. Coping with market changes: With the reversal of market supply and demand, a large number of foreign giants enter the market or new business models appear, enterprises will inevitably join fierce cost competition, and at the same time, they must realize product differentiation according to the clear division of customer needs. This situation is more common in retail and intermediary services.
3.M&A: After M&A, it is a very challenging job to run the whole company smoothly. Once the implementation is not effective, there will often be "institutional paralysis", which will make valuable customers and excellent employees lose trust and patience. At this time, it is necessary to redesign the organization and re-engineer the business process.
4. Enhance the vitality of enterprises: Many small and medium-sized enterprises will encounter such a situation: although senior managers constantly emphasize new visions, they always stay in language and cannot be translated into practical actions. How to make the strategy of enterprises deeply rooted in the hearts of the people and retain outstanding talents has become an important part of the transformation of these enterprises.
5. Fighting for survival: This tragic situation is not uncommon, especially in China, where many enterprises are burdened with high debts. How to find a way out between the long-term development plan of the enterprise and the immediate profit demand has become a top priority for the enterprise at the last minute.
Baidu Encyclopedia-Enterprise Transformation
Baidu encyclopedia-enterprise transformation and upgrading