Research On The Financial Performance Of Xiaomi Group Under The Transformation Of Business Model

At present,the development of the Internet has intensified the competition among enterprises,and the business model has become the key to the success of enterprises,attracting the attention of all sectors of society.Represented by Xiaomi in recent years,the Internet business model of mobile phone brands have flourished,but in the Internet dividend disappears,its disadvantages are also growing,growth,three or four line city of permeability is not high,the supply chain problem increasingly prominent,the user's discontent gradually increase,etc.,these caused the Xiaomi has experienced since its establishment in 2016,troughs,sharp decline in profits,market share declining significantly.Since then,Xiaomi group has been actively transforming its business model and adjusting its strategy since the end of 2016.It has adopted a series of measures such as the layout of offline experience stores,the use of celebrity endorsement,and the reorganization of its supply chain,and achieved good results.Under the background of business model transformation,this paper takes Xiaomi group as the research object and combines the literature research method and case analysis method to analyze and discuss the financial performance,especially the competitive strategy,profitability and debt paying ability of Xiaomi group after the business model transformation.Through comparative analysis of financial ratios and economic added value(EVA),the financial performance of Xiaomi group was studied in depth.The financial performance after the transformation of its business model was studied in detail,and the final financial performance of its business model was specifically analyzed.We also understand that in the absence of Internet dividend,mobile phone enterprises can survive in the fierce market competition only through the business model of online and offline coordinated development.For the problems existing in the transformation of Xiaomi group's business model,this paper proposes to strengthen strategic management and enhance its core competitiveness.Strengthen cost control and enhance profitability;Improve the efficiency of the use of assets,enhance operational capacity;Countermeasures and Suggestions from the four aspects of strengthening risk management and improving solvency.