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Research on Business Model Innovation of the Traditional Large-scale Retail Enterprises’ Transition to the E-commerce LV Xiao-ping1, LIU Xiao-li2 1 School of Business Administration, Zhejiang Gongshang University, P.R.China, 310018 2 School of Business Administration, Zhejiang Gongshang University, P.R.China, 310018 Abstract: In the face of the impact of the Internet tide, more and more traditional large-scale retail enterprises have used e-commerce platform for transformation. On the basis of analyzing the advantages, disadvantages and business model innovation forms of the traditional large-scale retail enterprises’ transition to the e-commerce, this paper puts forward some strategic suggestions about how to transform into e-commerce for the traditional large-scale retail enterprises. In addition, a case study of the innovative transition way of Wal-Marts e-commerce is analyzed. The paper is hoping to provide a reference to the transition into e-commerce model for traditional large-scale retail enterprises. Keywords: Business model innovation, E-commerce, Online retail, Traditional large-scale retail enterprises 1 Introduction In 2010, Internet users in China reached 457 million, and Internet penetration rate was 34.3%; online shopping transactions totaled over 500 billion, accounting for about 3.5 percent of the total retail sales of social consumer goods; online shopping users was 161 million, an increase of 48.6%[1].Online retail business is in a period of rapid growth. In the development of e-commerce team, the traditional large-scale retail enterprises are exposed more and more, playing a more and more important role. According to the statistics of China Chain Store Franchise Association, in 2010, 52 stores in the top 100 of the chain stores developed online retail business. [2] Whether the on-line operations of or the high-profile presence of , all reveal the trend of traditional large-scale retail enterprises’ transition to the E-commerce. Guidan