In 2000, Wa-Haha Group announced, that they planed to unite Hong Kong Dali Group to turn into costume industry. This news did convulsed the beverage, children- costume and multiple shop field in China. What caused Wa-Haha Group entered into costume industry? The author of this article will analyze the strategic changes according to the theory of strategic management. And let us understand how strategic management can affect an organization and then evaluate the importance of strategic management.