Business Model And Financial Performance Research On New Car E-commerce

The new car e-commerce industry has developed under the background of the sustained and high-speed growth of the national economy,the annual increase of automobile sales,the increasing popularity of e-commerce and the vigorous development of mobile applications.It has been less than 20 years since its emergence and development in China,and is still at an early stage of development.This paper chooses two new-car vertical e-commerce companies Bitauto and Autohome which are ranked the highest in China and have the highest market share.They have similar start-up time,convergence of business and main market,and fierce competition all the year round.With the help of the rapid growth of China’s automobile consumption market,they have listed on the New York Stock Exchange in the United States successively.A comparative analysis of their founding history,business model,financial policy and financial performance is of great significance to the analysis and judgment of the current situation and future trend of the development of China’s new car e-commerce industry.This paper consists of seven chapters.Chapter one is a summary of the research background,including the research theme,significance,research ideas and framework;Chapter two is an industry analysis,which analyses the current situation,characteristics and future development direction of the new car e-commerce industry;Chapter three is a comparative analysis of the business models of the two companies;Chapter four is an analysis of the impact of the different business models of the two companies on financial policy;Chapter five is an analysis.Chapter six is to analyze the impact of different business models of the two companies on financial indicators;Chapter seven is the main conclusions and recommendations.Through this study,Bitauto develops automobile finance business while developing new car e-commerce,while Autohome focuses on media advertising business in new car e-commerce.Although the diversification of Bitauto has brought about a large increase in business income,but the profit is negative,business activities can not create cash,which increases the company’s risk;Autohome focuses on the development of media business,and improves the company’s profitability and cash creativity.Overall,the financial performance of Autohome is better than Bitauto.It is suggested that Bitauto should control the asset-liability ratio while expanding business,strengthen OPM strategy and accounts receivable management properly without damaging business,further improve the level of investment,strengthen the ability of asset management,and enhance the asset turnover rate and investment efficiency.Autohome should take advantage of existing professional ability and user flow to expand new business such as second-hand car e-commerce and post-automobile market e-commerce to ensure revenue growth.