Business Model And Company Value

In the face of increasingly fierce market competition,many enterprises have chosen to improve the value and competitiveness of enterprises through the reconstruction of business model.Scholars at home and abroad are more and more keen to study business models.However,when combing the relevant literature at home and abroad,it is found that the existing literature mainly uses empirical methods to analyze the relationship between business model and enterprise value.There are fewer literatures that use typical cases to analyze the impact of business model on enterprise value,and fewer documents that use the perspective of business model elements to demonstrate the relationship between business model and enterprise value.On July 9,2018,Xiaomi group was publicly listed on the Hong Kong stock exchange.On July 22,2019,Xiaomi group was listed as the Fortune 500 of the United States,only 9 years since Xiaomi was founded in 2010.How does Xiaomi group grow rapidly in the fierce industry competition environment and its enterprise value is greatly improved? As we all know,it comes from Xiaomi's excellent business model.So,what are the characteristics of Xiaomi's business model and how do they affect Xiaomi's enterprise value? Based on a large number of documents,this paper discusses and analyzes Xiaomi's business model based on Wei Zhu's six factor model,and deeply discusses the process of the influence of business model on enterprise value.It is found that:(1)which path does the elements of business model influence enterprise value respectively,on the one hand,the elements of business model directly affect enterprise value,on the other hand,the elements of business model indirectly affect enterprise value by influencing other elements;(2)there is a mutual restriction or promotion relationship between the elements of business model.This paper studies the relationship between business model and enterprise value creation in combination with specific cases,demonstrates the impact of business model on enterprise value by using multiple indicators,deeply excavates the research problems of a single case,summarizes the characteristics and problems of Xiaomi's business model,and plays a reference role for other enterprises in how to build a more effective business model.As an Internet enterprise famous for its business model,which has achieved many leading positions in the industry in just a few years after its establishment,Xiaomi group's case can provide certain reference and inspiration to other enterprises,and promote the further research of business model.