Comparison Of Asset-Light Operation Models

The market environment is ever-changing,and the living environment faced by enterprises is not static.Adjusting its own operation model according to the environment is the basis for the company to live.Nowadays,more and more enterprises are paying attention to the asset-light operation model.Vanke has started to implement asset-light operation after the real estate industry entered the silver age.And since its establishment in 2010,Xiaomi Corporation has been practicing the asset-light operation model.Back in 2001,Bright Dairy&Food Corporation undertook asset-light strategy under the direction of McKinsey&Company.Foreign companies,such as Nike and Apple,also practice the asset-light operation model.Through the analysis of the practice of these enterprises,it can be found that although they are all practicing the asset-light operation model,there are differences in operation methods,implementation motivations,and financial performance.These differences lead to the thinking of the different types of asset-light operation models and their adaptability.This paper first defines the asset-light and the asset-light operation model.On the basis of definition,according to existing practices of enterprises and the way in which external resources participate in business development,the asset-light operation model is divided into four types:external resources undertake the"input" link;external resources support the new business development;External resources provide the interest-free liability for business development;external resources undertake the"production"link.Then,the four different types of the asset-light operation model above are compared and analyzed with Greentown China Holdings Limited Corporation,China Vanke,Gree Electric Appliances and Apple as examples.By analyzing the motivations and financial performance of four companies' practice of the asset-light operation model,this paper finds that the asset-light operation models selected by these four companies are compatible with the external environment and internal conditions they are facing.After that,this paper finds the adaptive conclusions about four different operation models by comparing the financial performance of the four companies after implementing the asset-light operation model.Therefore,based on the study of cases above,this paper puts forward some suggestions on how to choose the suitable asset-light operation model for enterprises:analyzing the external environment;analyzing the internal conditions of the enterprise;exploring,evaluating and cultivating competitive advantages;understanding all types of the asset-light operation model;implementation of dynamic adjustment.