Research On The Profit Model Of M Smartphone Company Based On The Value Chain

With the continuous development of communication technology and the popularization of mobile Internet,smart phones have developed rapidly in the past 20 years.Major mobile phone brands have continuously improved their product research and development efforts and updated their products.New mobile phone brands have also flooded into the market at low prices.However,due to market saturation and slowing growth,competition in the smartphone industry has reached a new high.How to optimize their profit model,continue to create value,stand out in the fierce competition,is the problem many enterprises need to solve.This paper takes M company,a domestic unicorn company,as an example.Firstly,it expounds the relationship between value chain and profit model.Then,combined with some important financial indicators of M company,the horizontal and vertical value chain of M company are analyzed and studied from the perspective of value chain.Finally,the profit model of M company was found out from the perspective of value chain and some Suggestions were put forward.The first part elaborates the research background and significance of this paper,sorts out the research status of value chain theory and profit model theory and the relationship between them,and then explains the research content,technical route and possible innovation points.The second part mainly defines two core concepts--"value chain" and "profit model",introduces the theoretical basis of the paper,and reveals the core of profit model--"value chain creation mechanism".The third part describes the situation of the smart phone industry,and then explores the elements of the profit model on the basis of the value chain,and constructs the relationship between the two.The fourth part firstly decomposes the profit model of M company,and further evaluates its current situation with financial indicators.Then,through internal and external value chain analysis,the composition of M company in each link is deepened.The fifth part finds four problems of M company based on the fourth part:(1)internal value chain--lack of core technology and low-end brand positioning;(2)supplier value chain--unstable supply resources and conflict of interests among suppliers;(3)customer value chain--customers' desire to purchase is impaired,and the consumer group is not wide.In order to solve the above problems,Suggestions and measures are given in the sixth part,mainly from three aspects(1)strengthen independent research and development,improve brand image;(2)strengthen supplier relationship,moderate backward integration.(3)appropriately change sales strategies and penetrate into market segments.Optimize profit pattern with this,obtain competitive advantage.