A Comparative Study On Financial Analysis Of Suning And Gome Based On Internet Business

The advent and rapid spread of the Internet era has brought about a rapid and sustained rise in e-commerce and has also sustained a fatal blow to the traditional retail industry.The popularity and development of electronic commerce not only completely changed people’s consumption habits and lifestyle,but also made the traditional retail business cost increasing,and the sales scale continued to shrink.It is urgent to solve the problem of how traditional retail trade should be used to cater to the Internet wave,how it should be transformed to survive and how to balance the Internet business and financial pressure.This article uses the two traditional retail enterprises,SUNING and GOME,which have already carried out Internet business as the case study and comparison object,through the induction and deductive method and case analysis method,to explore the differences in the Internet business between the two and the financial differences that are compared with the results of the financial analysis,so that the two enterprises are interacted with each other.The underlying causes of financial differences between SUNING and GOME retail sales based on Internet business angle can be found from the internal relationship and causality of the network differences and financial differences,which can provide some suggestions for the traditional retail enterprises who want to transform or carry out the Internet business to avoid their financial difficulties.Based on the analysis of the differences in Internet business and financial differences between the SUNING and GOME,this paper draws a conclusion that the difference in organizational structure adjustment mainly causes the difference between the operating capacity and the period cost of the enterprise,and the marketing strategy design mainly affects the sales income,net profit,profitability,development prospects and the future of the enterprise.The difference in the composition and quality of the cash flow,the difference in the choice of investment and financing strategy will lead to the difference in the solvency,the capital structure and the cost of the capital,as well as the differences in the sales scale,the goodwill and the fixed assets of the enterprise.Based on the case study,some suggestions are put forward for other traditional retail enterprises that want to carry out the Internet business: adjust the organizational structure,strictly control the cost of the period, optimize the marketing strategy,realize the accurate marketing,optimize the capital structure,moderate investment financing,reasonable logistics management,and make it suitable for itself.