Strategic transformation is an imperative field where scholars at both home and abroad have done many researches. However, there is still a lack of a universally-accepted and unified explanation of the connotation of strategic transformation, and systematic discussions on key factors and process mechanism of strategic transformation are still insufficient. Based on a systematic review of the existing research results on strategic transformation, this book refers to the theory of dynamic capability to conduct an in-depth study on the process mechanism of strategic transformation of enterprises, on the basis of which key factors based on the strategic transformation process are identified, and a model of the relationship among dynamic capability, key factors and transformation effectiveness is constructed. This book adopts the research model of literature review – model construction – empirical research.