Research On Profit Model Optimization Of WH Software Company On Asset-Light Strategy

Asset-light,also known as asset-light strategy,is an operating model under which the profit model works through low investment,enormous application of knowledge to achieve enterprise's asset-light status and obtain high profits.In foreign countries,put forward by McKinsey & Company,the concept of asset-light soon went viral among enterprises around the globe.Nike focus the major resources on R&D and marketing,thus making great return.Software and information service industry plays an important role in the market.With the vigorous development of China's economy and technology,software and information service has expended unprecedentedly its market share in China.It's a good idea for improving the core competitiveness and earning more profits that take the effective profit model.Through the “leverage” operation,asset-light can achieve reasonable allocation of both internal and external resources.In the meantime,it can maximize the value of enterprises by expanding the market share in a great extent with less capital and vitalize its competitiveness in its field.Software and information service industry is the representative of asset-light profit model.Therefore,analyzing and effectively evaluating the profit model of software enterprises can decode the demerits of enterprises' profit models,thus helping them to make profit and develop in a sustainable manner.This thesis takes WH Co,.Ltd.as an example about software and information service industry(mainly about futures software),which mainly produces futures software.Covering 97% in the market share,WH leads others in this industry as an representative.Starting with the basic theory of profit model,this paper ascertains the profit model of WH in the course of demonstrating relative theories and also makes clear its financial characteristics.From the perspective of value creation,this paper illustrates in detail the four elements that forge the profit model of WH,which is,profit growth point,profit source,profit measures and profit barriers.In addition,some behaviors are linked with these elements.Using DuPont analysis system,this paper analyzes the current profit status of WH in financial terms.After that,problems about the four elements-profit growth point,profit source,profit measures and profit barriers are found out,such as the lack of outsourcing business or diversity of marketing channel,etc.After that,improvement measures are listed such as strengthening the brand quality,preventing brain drain and the forth in the hope that it can help to upgrade the profit model of WH so as to enhance its core competitiveness and bring long-term profits.That aside,it serves as an reference to other similar domestic enterprises as well.