Research On The Business Model Of HS Jewelry Company Ltd.

HS Jewelry Company Limited (hereinafter referred to as the HS Jewelry Company) was incorporated in2009in Jinan, which is a jewelry retail business founded only three years and mainly engaged in the retail of jewelry including jade, Huanglong jade and crystal. The company is still in the start-up stage and facing many problems due to its imperfect business model. Based on the analysis of macro environment and industry environment of the jewelry retail industry, the six factors of the business model are used to a detailed analysis on the operational status of HS Jewelry Company’s current business model. Against its deficiencies of the current business model, new business model and its implementation measures for the stable development of HS Jewelry Company has been designed.The business model is chosen as the topic of this research, which is based on the reference of relevant theories. On the basis of clear definition and factors of business model, it is pointed out that an effective business model must start with the six factors of external market environment, internal operating environment, critical resources and capabilities, value network, profit model and cash flow structure. Based on the logical relationships between the six elements, the diamond model of business model analysis has been established.This thesis uses diamond model of BM and strategic management analysis tools and starts with the status of jewelry retail, taking HS Jewelry Company as a case study and running system analysis, pointing out that the HS Jewelry Company’s current business model positioning is not clear, the value network is too simple, the critical resources and capabilities are not highlighted and the cash flow structure is imperfect. According to these deficiencies and the purpose of improvement, the thesis undertakes:(1) In-depth study of the external market environment, reposition the product and company.(2) Integration of resources and advantages to create a competitive advantage through value network.(3) Improving the integrate capability of customer and suppliers resources.(4) Enriching the profit model and enhancing the cash flow. Finally, in order to ensure the reconstructed business model can be implemented properly, the thesis discusses several relevant issues that should be solved and provides the corresponding implementation and safeguard measures.