Abstract: For many traditional sales enterprises dominated by core business, the development of new business has become an engine for rich product portfolio as well as a means to enhance the profitability of the company and the competitive advantage in the industry. However, there is less that survive in the both development of new and old business model. This case takes Huazhang company as an example, describes a series of problems and conflicts encountered in the process of development of new business M, which shows that a good development strategy and organizational structure of new business must be matched with the business characteristics, the company resources, the old ones and external environment. It is not a simple business superposition but a dynamic process of matching a new business’spositioning, development strategy and the company’s organization form .
