Research On Profit Model Of Information Technology Service Enterprises

With the continuous growth of national Internet users and network traffic,the demand for CDN market continues to rise.However,ali,tencent and other cloud manufacturers enter the market at a strong price,causing the shock of the traditional CDN industry.Many old CDN manufacturers withdraw from the market because they cannot bear the price war.However,netstar technology,as the industry leader,has survived two rounds of price wars,while the former competitor,china cache,has seen its operating income decline year by year since 2015.About information technology services,however,the existing research is more focused on the services of the industry,few study the profit model of concrete,so this paper will be based on the theory of profit model and value chain theory,through the analysis of the background mesh lodge the corporate strategy of science and technology,and then analyzes its business model,and ultimately rests on profit model.Therefore,this paper will take netstar technology as a case study of how information technology service enterprises in the continuous wave of the Internet to maintain sustained and stable growth of profitability?Around the core issues,three case studies are proposed from the following perspectives:(1)how can enterprises form sustainable growth of operating revenue in the context of intensified industrial competition?Analyze the income structure and sort out the main factors to guarantee the income growth.(2)how can enterprises form cost advantages?Analysis of the cost structure of the main means of cost control.(3)how do enterprises control risks and ensure their profitability?Are the major risks of the business well controlled?The research idea of this paper:adopt the combination of qualitative analysis and quantitative analysis,case analysis and theoretical analysis,and select the representative network-host technology as the case study object.Firstly,the information technology service industry is analyzed from three aspects:industry background,industry structure and overall profitability.Secondly,from the financial perspective,combined with the business model theory,analyzed the company's strategic positioning and business model,and then led to its profit model.Thirdly,through the cause analysis of the three aspects of revenue,cost and risk,this paper discusses the means of raising revenue,forming cost advantage and controlling risk.Finally,on the basis of the analysis in the previous chapter,this paper proposes how the company achieves stable and sustainable growth of profit and how to control risks,and evaluates and analyzes this profit model.The research findings of this paper:(1)income.Web host technology through continuous r&d investment and infrastructure construction,scale and product line form rich resources and advanced technology experience,and gradually formed the exclusive resources on sales and research and development,and establish precise positioning and professional service for the clients and develop new requirements in the process of cooperation,and then through the research and development of new products continue to create profit point.(2)cost.By integrating resources and gathering customer demand,netstar technology forms scale effect to reduce procurement cost,and reduces inventory cost by improving platform utilization rate and inventory turnover rate.(3)risk control.Netstar technology does not exist capital security,scale of operation and investment risk,need to focus on technical risk.(4)netstar technology needs to improve the enthusiasm of sales staff to improve sales performance,and improve the utilization rate of enterprise funds.