CITISP Business Model Research

The Sohu promotional channel (citisp.sohu.com) is the sub channel under Sohu website, positioning as the ground consumer information platform. The main business models of Sohu promotional channel are recruiting city agents, joining cooperation after charging buyout of the media, and carrying out media and advertising businesses through sub-stations of promotional channels. As a result, through attracting investment, Sohu promotion headquarters not only get the return of the fund, but also form a network of distribution channels by joining agents around. Local SME advertisers taking advantage of this platform can achieve low-cost high-value brand promotion. This business model is designed to be a multi-win solution for agents, Sohu promotional headquarters and advertisers. Operators expect to accelerate users’acceptance and shorten market cultivation period by scaling up distribution numbers.In the actual business operations, the operating company under Sohu promotional channel carries out their work around the substation investment. But with the passage of time and the feedback from the market, various loopholes in the business models and operational management gradually emerge. Serious loss of customers and cash flow break means the moment of reflection to the enterprise. In addition to improving operation management, business model also needs to make the appropriate adjustments in accordance to needs customer and market feedback.Taking Sohu promotional channel business model as the study object, the paper analyzes and researches through business model theory and strategic management tool. Firstly, the situation of operating company was introduced and the business model framework was studied. Taking value proposition, target income and other aspects as the specific research content, and through access to information and combining with business model design and strategic management tool to analyze the current situation of Sohu promotional business model, it was found that following problems still existed: no maximizedcustomer value, low business process efficiency, no clear profit models, the degradation of the core competitiveness and failures of sustainable profitability. Secondly, the current business model problem was analyzed. Thirdly, by using relevant theories and methods of business model design innovation,the paper proposed the plan of Sohu promotional channel, business model management and control model. To be specific, the paper put forward how to optimize the current business model from the following aspects like the target customer segments, a clear value proposition, channel management, diversification of channel management, clear customer relationships, profit model design and key business. Finally, measures and suggestions were also put forward in the paper.The Internet business model discussed in the paper has a realistic significance for the small and medium-sized enterprises engaged in the website at present.