TC’s Business Model Innovation Research

With China’s aging population, rising income levels and increased population health awareness, the demand for home medical equipment is growing rapidly. Good market prospects and relatively low barriers to entry have been attracting more and more companies to the home medical equipment industry. Due to the lack of core technologies, the majority of such a company’s products are based on imitation, causing serious product homogeneity in the market and fierce competition. Meanwhile, strong companies in the industry under the existing business model, with its advantages in brand, channel and cost constantly expand their market share, so that the living environment of the industry is also increasingly difficult for SMEs. TC is a latecomer company in the field of cardiovascular health home medical equipment research and development, production and marketing. Its business operation under traditional business model has encountered significant problems due to the lack of brand awareness, sales channels and price competitiveness Based on the theoretical research on the concept of business model design and innovation, the paper discusses how the TC Company may obtain competitive advantage through business model innovation by utilizing opportunities of the industry brought by Internet technology development. Through analysis of the TC company’s own strengths and weaknesses, as well as researches on the external macro-environment, the status of the domestic industry, business model innovation in foreign peer companies, a new business model framework is designed for the TC Company with a value proposition in hardware sales, value added services and data utilization. The paper further elaborates specific contents of each constituent element in a detailed design, and proposed recommendations for key issues in the implementation of the business model. The newly designed business model will help the TC Company acquire differentiated competitive advantage in the increasingly fierce competition in the industry, while serving as a reference for the other companies in the industry.