Abstract：A great change in the market of the developed countries is happening now. The market is becoming more and more individually, small scaled and shorts. Along with the change, the uncertainty and turbulence of the market is increasing. In the heterogeneous market, the old production model with the characteristics of mass production and assembly lines has lost its flexibility, and even its scale advantage. These characteristics of market made the transaction costs changed, and shook the economic rational basis of the old industrial organization models. The readjustment to the organization boundary and structure then occurred all over the developed countries,and the similar challenges from market is also appearing in our Chinese enterprises.
