Research On The Cash Flow Crisis Under The Vertical Integration Strategy Of LeTV's Industrial Chain

The advent of the Internet era has changed the way people live.Many enterprises have also found business opportunities and entered the Internet industry.Rapid development is often accompanied by fierce market competition:human cost,research and development costs,core technology,government supervision,etc.all make it difficult for enterprises with single development mode to support.How to increase profit margin by changing the development strategy is a matter of concern.Letv chose the vertical integration strategy of industry chain to improve market competitiveness.Letv,with its "platform + content + terminal + application" industry chain mode,has achieved hundreds of billions of assets in just a few years.Letv has become the first enterprise in China's Internet video industry to declare profits,and it is the only video website listed in China.The model has attracted the imitations of Internet companies and investors' interest,and has brought huge benefits to Letv.However,recently Letv has faced a number of issues,including the CEO's resignation,plummeting stock prices and loss of staff.Letv's industrial chain vertical integration strategy is the main cause of cash flow crisis?This problem is worth our further study.In order to solve the above problems,this paper takes Letv company as the research object.Based on relevant theories,this paper adopts the methods of literature analysis,case analysis and data processing analysis,and further studies the vertical integration mode and financial status of Letv company's industrial chain.Industrial chain vertically integrated part of this article,the author introduces the music industry chain model,on the basis of detailed expounds the specific content for the construction of industry chain and by using the SWOT analysis method depending on the model was evaluated.In part Letv cash flow crisis,the author first by measuring Letv safety degree of cash flow,draw Letv hasn't happened yet blocks the flow of cash flow but risky conclusion,based on the analysis of profit,operating,debt paying ability of three indicators on the basis of analysis of the industrial chain model,the influence of the starting from the cash flow changes,and finally to explore the connection of both exist,and put forward the corresponding solutions.In this way,we hope to provide a feasible proposal for Letv to solve the current crisis,and provide a reference for enterprises that carry out vertical integration of industry chain to guard against cash flow risk,and find ways to curb the cash flow crisis from the root cause.