Innovation Research On Profit Model From The Perspective Of Ecological Chain

At present,China's Internet industry is in a period of rapid growth.Unlike traditional industries,the profit model of Internet companies is constantly evolving and being driven by various factors.The Internet profit model does not have an established template that can be applied.It is a fundamental problem for all Internet companies to find out the characteristics of the enterprise itself and formulate a profit model suitable for the long-term development of the enterprise.At present,many companies realize the positive effects of a profit model suitable for their own development,so as to draw on the experience of the successful model,formulate a profit model that matches the characteristics of the enterprise,and promote the long-term and stable development of the enterprise.The interest of enterprises in the profit model is gradually increasing.Therefore,many scholars also focus on the profit model.As an emerging Internet company,due to its differences from traditional companies,the situation of formulating a suitable profit model is more severe,which also shows that the research and analysis of the profit model of Internet companies is more practical.Today's success of Xiaomi Company is inseparable from the innovation of its profit model to a certain extent.It is mainly reflected in that Xiaomi Company is not limited to the central products of mobile phones and TVs,and constantly expands the Xiaomi ecological chain.Become a benchmark for industry research and emulation.From its birth in 2010 to going public in 2018,Xiaomi became the world's top 500 in 2019,and has occupied a place in China's Internet companies.A detailed case analysis of the innovation of Xiaomi's profit model is more convincing.This article takes Xiaomi Company as the case study object,through the literature analysis method and case analysis method,to the existing profit model and the concept of business ecological chain,the characteristics of the profit model from the perspective of the ecological chain,the analysis method of the effect of the profit model innovation and its related theory Provide an overview to lay a certain theoretical foundation for subsequent writing.The article is introduced from the development profile of Xiaomi's profit model,and then analyzes the innovation and motivation of the profit model from the perspective of the ecological chain.From the early stage,it mainly profited from the fan effect,and it has developed into a diversified profit model in which smartphones and ecological chain products have developed in a coordinated manner.The profit model is constantly being optimized.Unlike companies in the same industry,Xiaomi is not limited to smart phones,with a wide range of products,high production efficiency,and high cost performance.It adopts a cooperative mode of "shareholding but no holding,coordinated development and common profit" for ecological chain enterprises.There are two internal and external reasons for Xiaomi's innovation in its profit model:(1)External reasons: the domestic mobile phone industry is highly competitive,and the ecological chain model conforms to the development of the Internet era;(2)Internal reasons: broaden its product matrix and decentralize A single business risk,while creating greater enterprise value based on limited human and financial resources.Then,the article analyzes the five elements of Xiaomi's profit model one by one,and selects the financial data available to Xiaomi in recent years to analyze the impact of the innovation of its profit model on financial indicators and non-financial indicators.After analyzing its positive benefits,it puts forward the risks that its profit model innovation may face.The study found that the innovation of Xiaomi 's profit model has broadened its profit point and profit source,and its financial indicators have been improved.Its innovation has made Xiaomi more competitive,with a steady increase in profitability,and continuous expansion of corporate value.The risks that innovation may face include: new product development time cycle is short,new product development direction is wrong,ecological chain company makes mistakes and its responsibility is joint,and management ability can not keep up with business expansion speed and other risks.At the end of the article,it summarizes and summarizes the research and analysis of this article,and puts forward some suggestions that can be improved according to some problems and risks of the innovation of the profit model from the perspective of its ecological chain.It is hoped that this article will analyze the innovation of the profit model from the perspective of Xiaomi 's ecological chain,reduce the detours of domestic companies in the industry when formulating the profit model,and provide innovative ideas and deep inspiration for companies in the industry to improve their profit model In order to form the profit model that is most suitable for the long-term development of the enterprise and maximize its profit.