Does The Appliance Manufacturing Industry Avoid “heavy” And “light” Improve Financial Performance?

With the arrival of industrial transformation and large data age home appliance industry’s mode of operation has gradually shown some drawbacks with its profitability is mainly through the economies of scale and price war in China.In this thesis Haier chose Asset-light strategy based on the advantage of internal resources such as innovation brand technology and marketing channels.This paper tries to explore whether Haier’s Asset-light strategy can improve its financial performance.The focus of this paper is to compare financial performance between Haier and Mei Ling finding out whether the differences existed is caused by adopting Asset-light strategy.Haier is an Asset-light strategy representative enterprise the home appliance industries while Mei Ling is still the representative of the traditional heavy asset operation model.Taking the two enterprises’ similar main business composition and operating period into consideration so choosing them as research objections.Firstly this paper summarizes the relevant literatures at home and abroad and then analyzes the financial characteristics and contents of Haier’s Asset-light strategy.Secondly this thesis uses the financial index method and EVA evaluation method to analyze the financial performance of Haier and Mei Ling from horizontal and vertical aspect.Finally through the profitability solvency operational capacity and developmental capacity analyze the financial performance and coming to following conclusions: Haier’s financial performance is better than Mei Ling’s.The main reason is that Haier paid attention to research and development innovation timely selected outsourcing and actively explored marketing channels used similar financial model to improve its operating performance save financing costs improve asset efficiency bring to large cash flow.Thus it can improve the profitability and operational capacity of enterprises.In the end of this thesis further analyzing probable problems in this Asset-light strategy and put forward relevant suggestions to Haier.Hoping to provide reference for household electrical appliance enterprises in China.