Strategic capability construction and performance changes in the process of digital transformation: A case study of midea group (2015–2024)

In the era of digital transformation, manufacturing enterprises face increasing pressure to restructure their strategic capabilities to remain competitive. This essay focuses on Midea Group, one of China’s leading manufacturing firms, and investigates its digital capability development from 2015 to 2024. Using longitudinal data from annual reports and strategic planning documents, the essay adopts a case-based approach to trace how Midea aligned internal resources with adaptive processes to navigate technological disruption. The analysis reveals a phased transformation strategy integrating both financial and non-financial performance indicators. Midea’s phase of progress went from standardizing internal systems to automating operations, and then to being real-time responsive with strategic coordination. The essay offers a practical context for manufacturing firms in emerging economies.