Driven by digital technology, more and more traditional enterprises are facing the dual pressure of rapid external environment iteration and internal transformation capability constraints. There is still a lack of sufficient exploration on digital strategy renewal, digital dynamic capability building, and internal adjustment mechanisms in enterprises. Combining with the strategy renewal and dynamic capability theories, this paper conducts a case study and theoretical refinement on the digital strategy renewal of Shanghai Xujiahui Commercial Co., Ltd. The results show that: (1) The external environmental pressure of digital strategy renewal primarily stems from market organization model reshaping, market boundary expansion, and value creation model reconstruction induced by digital technology penetration. (2) Digital strategy renewal can be categorized into intra-chain incremental, intra-chain restructuring, and cross-chain leapfrogging models, forming a Y-shaped digital strategy evolution path. (3) The digital technology capability, digital operation capability, and digital organization capability of enterprises are built through the logic of “searching–integration–reconfiguration–iteration”. (4) Executive cognition, CEO transformational leadership, entrepreneurship, organizational error tolerance, and cultural distance significantly play a moderating role in overcoming organizational inertia and building digital dynamic capabilities.