An Analysis of Evolution Process from Leader to Business Ecosystem
|School||Dongbei University of Finance|
|Keywords||leader business ecosystem evolution process Li & Fung Group|
With the developing of division of labor, every enterprise is no longer the isolated "atom", various economic interests relationship is established among enterprise. Leader, upstream enterprises, downstream enterprises, complementors, customers, and even competitors form a new business model---business ecosystem. Enterprises should recognize the evolutionary stage of business ecosystem which is similar to life cycle, and seize the opportunities to form the business ecosystem which has competitive advantage and own characteristics, then can survive and develop continuously in the changing environment and threat of competition threat. The scholars pay more and more attention in the studies of business ecosystem, and the studies are contributive in theory and practice. However, they ignored the effect of leader and necessary measures that leaders should take in the evolutionary stage of business ecosystem.As a result, this study takes Li & Fung Group for case to analysis deathly the evolutionary stage of business ecosystem of leader. We have organized this paper into five chapters. Chapter 1 is introduction, putted the necessity, theoretical significance, practical significance, content, frame and the definition of some concept of this paper. Chapter 2 is literature review, summarized the researches on business ecosystem, and reviewed the researches on the evolutionary stage of business ecosystem. Chapter 3 is research methods, presented case study design that including detailed design process, analysis unit, preparation of data collection, and so on. Chapter 4 is case study, discussed the proposition from data coding of Li & Fung Group, and analyzed the four evolutionary stage of Li & Fung Group. Chapter 4 is conclusions and prospect, putted main conclusions, value, limitations, and prospect.We found that conceiving the emerging value web and take the needs of the customer as the guiding ideology are the most important tasks for leader at pioneer stage of business ecosystem. Value contrast is no longer important, however finding the value of meeting customers and investors’ needs is crucial. Leader should give full play to the role of coordinating and managing each participant to increase services for customers and investors. Establishing defense border is the most important tasks at growth stage of business ecosystem. It can not only offset the instability which result from expansion of ecological space constantly, also promote the establishment of core team. Keeping and embedding innovation is the most important tasks at growth stage of business ecosystem. It can prevent attack and keep that key customers and suppliers have satisfying interests. Of course, leader should consider the importance before innovation, and meet customers’needs firstly. Inducting new ideas and new technologies or retain the original strategies to face the challenges of competition and cooperation is the most important tasks at self-renewal stage of business ecosystem. The environment is more uncertain this stage, so leader should identify or anticipate major changes in the environment in order to reduce attack and the threat from replacers. The tactics are very important at self-renewal stage.This theme is a new research field, but with the development of economy and society, the-advantage business ecosystem which is formed by enterprise and its stakeholders’coupling. This paper analyzed four stages through which leader form business ecosystem. It deepened the process of building business ecosystems, and it is significance in theory. At the same time it played a guiding role in operating for the evolving enterprises and those still are "atoms" in practice.