Case Research On The Financial Performance Of TCL Corporation After Enterprise Transformation By Internet

As rapidly developing in information and network technology in China,the advancement of an enterprise can't be classified anymore by its product.It is classified by the sensibility of the enterprise to the Internet.If an enterprise of classical household appliance industry wants to maintain its advancement and higher profit,transformation by the Internet is extremely urgent.In 2013,TCL Corporation experienced a strategic transformation by the Internet.In this process,a strategy called “double plus(+)” is put forwarded,namely,“intelligence + Internet” and “product + service”.According to this strategy,the enterprise is needed to emphasize user experience in the process of business management as to develop its product and service to the higher level of humanity and intelligence.In its transformation process,TCL has made some degree of achievement,but at the same time,some problems emerged such as unstable phenomena in competitive strategy,earning power and debt paying ability.Therefore,it is worthy us to deeply investigate and research some key questions to TCL Corporation,such as the economic result,influence to the enterprise financial performance,advantages and disadvantages of transformation by the Internet,problems must be paid attention to during the process of transformation by the Internet for TCL Corporation.On the background of transformation by the Internet,taking the TCL Corporation as the research object,integrating the methodologies of literature and case analysis,by means of financial ratio contrastive analysis and Economic Value Added(EVA),the financial performance of TCL Corporation,especially the competitive strategy,earning power and debt paying ability are investigated and analyzed in this paper.Two conclusions have been arrived,the first one is that there are unstable phenomena in competitive strategy,earning power and debt paying ability after the enterprise transformation by the Internet.Secondly,the influence of transformation by the Internet is generally good,that is to say,advantage is greater than disadvantage.In addition,Aiming at solving problems encountered by TCL Corporation after the transformation by the Internet,four proposals are put forward in this paper: the enterprise should adjust the competitive strategy as to enhance the core competitive ability;the cost control must be enforced as to increase the earning power;capital must be more efficiently utilized as to enhance the management level;Risk must seriously controlled as to raise the debt paying ability.As other enterprises are concerned,the suggestions are related to the strategic management ? core competiveness ? financialperformance management?financial risk management.These are four aspects of apocalyptic strategy.