Case playback:

　　In 1966, A company was founded in the United States, with its unique "large-scale professional home appliance stores and chain management" business model to become the world's largest home appliance and electronics retailer. From the second half of 2002, A enterprises began to global layout. In 2003, A enterprises to set up offices in Shanghai, China in 2005, procurement volume A enterprises in China accounted for 72% of its global procurement, and began looking for a store resources in china. In 2006 May, A company acquired a Chinese Jiangsu B electric company, and the implementation of dual brand strategy. In 2007 January, A opened the first shop in Shanghai, there have been 9 open for business. 6 of them are located in Shanghai, Hangzhou, Suzhou and Beijing each have a home. During the operation, A enterprises adhere to the source in the United States in China has been in the business model, the implementation of differentiated competition, but the operating performance and speed are not ideal. In 2011 February, A Corporation announced its withdrawal from the Chinese market, its business in China integrated into its China B Jiangsu electric company brand.

　　Intensive analysis:

　　Business model, is refers to the entrepreneurs to seize business opportunities, the basic logic system gets the value, namely entrepreneurs in order to realize the enterprise value maximization, through the integration of elements forming the core business ability, realize the value of the overall solution. Business model generally includes the value goal, value formation and value of three aspects. The myriads of changes in the market, competition is becoming increasingly fierce today, entrepreneurs to talent showing itself to grow and develop, must design their own, competitive, out of the ordinary business model. For example, Baidu Inc rankings, the virtual management of Mengniu, Gome multicomponent system, Haier's dedicated service, diversified business association, lining athletes brand management, Wahaha channel pool.

　　Innovation of entrepreneurial model belongs to the innovation the most origin, it runs through the entire process of entrepreneurship. Entrepreneurs need to consider many of entrepreneurship, from the value goal, value formation and value sharing three aspects to construct business model system, the entrepreneurship entrepreneurial model assault and entrepreneurial supernormal development.

　　In this case, A enterprise has obtained the fast development with its unique "large-scale professional home appliance stores + Chain Management" business model. The model will be the target market positioning in the high-end customers, "experiential marketing", "non sales commission system", "own brand sales" means the form value, and to "dealer system" and "full service" and manufacturers and customers realize the value share. A enterprise business model to obtain the unprecedented success in the United States, but suffered an embarrassing defeat in China, the main reason is that the business model to adapt to China's unique business environment.
From the value goal, A in enterprise mission, market positioning and competitors are there is a big difference, has the survival space and development potential of certain. But A enterprise ignored the reality of China is still a developing country, can satisfy the business model of the target market size is too small, unable to support the A business operating costs. The economic downturn in the global context, China's target customer growth rate also is not optimistic, difficult to achieve A expansion of enterprise scale in china.

　　Formation from the value, has the Chinese local rivals hard-to-reach resources and management ability of A enterprises, formed a strong core business ability. But A enterprises ignore China's unique social and cultural environment, to make the core of entrepreneurship lost play, and tired to its.
Store location, A enterprise super store has changed the traditional home appliance retailers, crowded and messy shopping environment, which brings together many brands, providing the convenience for the customer to choose, can greatly reduce the operating cost, gain the competitive price advantage. But because the individual shop to a larger scale, generally away from the shop rent expensive central business district. Considering the traffic and buying habits and other factors, A enterprises in China must choose field rent expensive people seriously, not only improve the single-store operation cost, slow down the chain operation speed, also weakened the bargaining power of customers and vendors.

　　Marketing, experiential marketing, enterprise A display to warehouse-style non Commission Expert sales and service as the focus has changed the traditional home appliance retailers according to manufacturer brand display store sales and price products, shop competition marketing. It emphasizes the fairness of shopping environment and brand competition, beneficial to customers and employees through in-store experience design is most suitable for the product portfolio of its own, to satisfy the customer to buy the whole process of individual demand. In North America, A enterprises through the "experiential marketing" not only lock the high-end customers, but also can weaken the product brand, enhance its own brand, promote the combination of purchase, receive value-added costs. But because the Chinese consumers for home appliances and brand cognition ability is weak, in the absence of the leading and guiding the sales situation, also difficult to own brand and product selection. And provide unbiased guide service and knowledge value-added services for A enterprises through their hiring and training staff for the customer, although also can help the customer consumption decision, but in the credit system is not perfect, a single product to buy more lively, like from the consumer environment, easy to make the customer "lure" purchase psychological feelings it is difficult to achieve, experiential marketing function.

　　Supplier relationship, leading right A enterprise access to stores by dealer system, a Chinese home appliance supplier by "fixed rent + sales into" the channel relationship most of the stores dominance. This kind of channel relationship is more conducive to the first-line brand product sales, the lack of competitiveness of the two or three line brand it is difficult to achieve a breakthrough in the A business, which will inevitably lead to A enterprise sells mainly to expensive foreign products and its own brand. But the Chinese household electrical appliance industry, many brands, the smaller the difference of product, brand positioning fuzzy, the majority of customer consumption ability is limited, brand loyalty is weak, resulting in A enterprise scale expansion is slow, first-line brand loss, local brands resistance, high operating costs of the embarrassing situation.

　　See the share from the value, A enterprises through experiential marketing and dealers system earn bid-ask spreads, and the formation of sharing mode specific and customer, suppliers, shareholders and society value. Customers, the system can meet the customer experience, freedom, individuality and private consumption demand, but it is difficult to adapt to the Chinese consumer Kanjia, conformity, fun, spending habits; supplier, this mode is helpful for suppliers as soon as possible to achieve sales, cost recovery, but cut off the appliance manufacturers share sales channels and market synergy residual income may be difficult to adapt to the times characteristics, Chinese manufacturing sector increasingly meager profit; shareholders, A enterprises to open up a huge potential market, but the high cost, weak single-store profit space and slow growth speed of access to the shareholders of the listing Corporation's long-term and ongoing support; social aspects, the A business model for me China provides a new model, stimulate domestic appliance retailers accelerated to explore new business models. But A enterprises did not find conforms to China's current business ecosystem, and innovative business model, the final defeat not only make the employees bear unemployment pains, consumers also reduce a viable option.

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