The Analysis And Optimization Of Profit Model Factor Of JH Company

Profit is the basis of the survival and development of enterprises.To Maximize profit is not only permanently pursued by enterprises,but also the focus of business managers.Therefore,studying the theory and practice of profit model factor is of great importance to the development of enterprises.Four-factor theory of profit model raised by Adrian J.Slywotzky refers to what target customers the enterprises provide value for,what value the target customers are offered,how the enterprises create value and how the enterprises keep their competitiveness.As is studied,with the change of the environment,industry and technology,every factor is changing all the time.The combinations of different factors will result in different profit models.Based on four-factor theory of profit model produced by Adrian J.Slywotzky,profit source?profit point?profit leverage and profit barrier will be analyzed in this essay.In recent years,with the growth of the national economy and the increase of residents' income,China's textile and garment industry,as one of China's traditional pillar industries,which has been developing rapidly,owns a significant position in the national economy.However,the industry concentration is low;the market competition is fierce;the development is driven by mainly expanding the scale,consuming resources mainly,with low technology and backward business philosophy,and mainly relies on the label processing model with lowest added value.The whole competitiveness of the industry is so poor that the resistance against risk is extremely low.According to the statistics,by the end of 2018,among the 49 listed clothing companies,there had been one ST company,seven unprofitable enterprises,and 11 enterprises with slender profits.Nearly half of the companies in the industry are unprofitable or have small profits.The reasons for these are various.However,in the general,the bad performance of the enterprises is,to some extent,related to its own the profit model factor.The research subject of this paper,JH Group Co.,Ltd.(hereinafter referred to JH Company),a military-to-light industry manufacturing enterprise,listed on the Shanghai Stock Exchange in 2010,has had a bad business performance in recent years.With documentation method and field filed survey and theories related to profit model factor and financial analysis tools,this paper mainly analyzes JH's profit model factor,take some factors that influence profit into consideration,and eventually puts forward optimized direction and strategy.including improving technological content of the products,increasing the customer value,adding more flexibility to supply chains and building core competitiveness.Through the analysis and study on optimizing the elements of the profit model,the enterprise can easily get rid of the present model where profit is earned only from one series of products and find new profit margins.The essay is meant to find out the problems existing in the current profit model through analyzing financial index that can affect the elements of JH's profit model and then figure out the reasons for them so as to raise suggestions on optimizing elements of the profit model.Although the clothing industry belongs to labour concentrated industry,there are many potential market opportunities in various value chains related to it,which is regarded as the biggest supplier for consumer markets in our country.Therefore,clothing industry is still vigorous.Through studying the profit model of clothing industry,more social values can be created that has a actually meaningful effect on both the clothing industry and even the whole society.The research of the essay is expected to provide some suggestions on optimizing the elements of the profit model of JH and can also serve as the reference for those enterprises like JH.