Research On The Expansion Of JL Company's Profit Model

In 2009,Henan JL Jewelry Co.,Ltd.(hereinafter referred to as JL Company)settled down in Zhengzhou,Henan Province,the hinterland of the Central Plains.It is located in the gold and jewelry wholesale industry.It is a trading enterprise which has just been established for ten years this year.The company mainly deals in the wholesale sales of gold,platinum,palladium,jewelry and jade inlay jewelry.At present,the enterprise is in the bottleneck stage,she has experienced the initial stage of the enterprise,also experienced a certain degree of industry changes,with a spontaneous profit model.At present,enterprises are facing more difficulties,and the spontaneous profit model needs to be improved.Through studying the source of profit model and the formation process of theory,the definition,five elements and classification of profit model are obtained.Based on the analysis of the environment of gold jewelry wholesale enterprises and the unique business environment of JL company,this paper analyses the five elements of profit model one by one for the existing profit model of enterprises,and draws the existing profit model.Deficiencies and limitations.By comparing the development process of benchmarking enterprises in the industry with the more mature profit model,this paper puts forward a new profit model and supporting implementation plan for JL company to achieve sustainable development,breaking through the bottleneck period of its spontaneous profit model development.This paper takes the expansion of profit model as the topic,and on the basis of studying the relevant definition and classification of profit model and comparing the profit model of industry leading enterprises,puts forward a new profit model for the sustainable development of JL Company,and points out that the effective profit model must start with the five elements of profit source,profit point,profit lever,profit barrier and profit maker.This paper analyses the profit model of JL company and conforms to the Five Forces Analysis Model,and explores the ways that can be applied to the expansion of JL company’s profit model.This paper uses the Five Forces Model as an analytical tool and refers to the comparative analysis of the leading jewelry wholesale enterprises(Lao Fengxiang as an example),points out the shortcomings of JL’s current profit model,such as the uncertainty of profit caused by the cost pricing model,the singleness of the current profit model and the high cost,and puts forward improvement suggestions for these shortcomings:(1)along with Developing the upstream and downstream business of supply chain,(2)Enriching the type of sales products,raising gross profit rate,enriching profit model in multi-dimension,and improving profit margin,(3)developing independent brands.Finally,it is pointed out that in order to ensure the implementation of the new profit model,JL can improve its organizational structure,personnel reserve,and funding sources.