Research On Profit Model And Financial Evaluation Of Xiaomi Corporation

With the rapid development of Internet technology,smart phones have become an indispensable part of people's daily life,and their industries have entered a mature stage.At the same time,the pursuit of people's spiritual culture brings about the pursuit of intelligent life.So,the artificial intelligence and the Internet of Things industry are gradually emerging.Many Internet companies have discovered this opportunity.Some enterprises are flourishing,while others are sloppy.How to make enterprises invincible in fierce competition,the profit model of enterprises plays a decisive role.As a diversified Internet company integrating smart phones,IoT,consumer products and Internet services,Xiaomi Corporation not only shapes the unique and effective profit model of Xiaomi Corporation by virtue of customer participation in product design,resource sharing and high cost performance.It also provides a successful example for other companies to refer to and learn from.This paper takes Xiaomi Corporation as the case study object.Firstly,it analyzes the development process of its profit model.Based on the theory of value creation,value chain theory and financial performance analysis theory,it relies on the Internet environment and starts from the five dimensions of profit model.The profit model is deeply analyzed to find out the key points of its profit model.Then through the systematic financial analysis and evaluation of the profitability and profit quality of Xiaomi Corporation,the success of Xiaomi Corporation's profit model was verified from the financial perspective.Analysis of its related financial indicators also found that it has shortcomings such as shortcomings in technology and low gross profit margin.Therefore,this paper proposes that Xiaomi Corporation should continuously innovate and develop products to increase profit points,actively expand the number of profit sources,increase brand awareness,and deepen the proposal to build a solid profit barrier,which will provide useful reference for the future development of Xiaomi Corporation,and also for the future.The development of Internet companies provides reference and inspiration.There are two aspects to the innovation of this article.First,Xiaomi Corporation,as an Internet company that started selling mobile phones,is a rare Internet company with special genes.It analyzes and evaluates the case studies of Internet companies that can diversify their profit models.The second is to conduct qualitative and quantitative research and analysis on the profit model of Xiaomi Corporation from the perspective of financial analysis.