Research On The Economic Consequences Of China Coral Solution’s Light Asset Transformation

The current business model of market competition is constantly changing,and the application of science and technology in business is accelerating.These trends make the asset-light model gradually applied to more industries from the initial high-tech and Internet industries.More and more industries,including real estate,retail,logistics,etc.,are showing a trend towards a asset-light model.They began to use the development of Internet and other information technologies to focus on the development of intangible resources such as technology,brand,and management capabilities.Among them,the supply chain management industry needs to provide multiple links such as the purchase,sales,warehousing and transportation of commodities in the industrial chain.This industry has high requirements for information integration capabilities,resource allocation capabilities,and brand operations capabilities.Therefore,with the support of technologies such as the Internet and big data,supply chain management companies are actively transforming from self-operated models to platform-based asset-light models in order to realize the integration of business flow,logistics,capital flow and information flow.In October 2017,the State Council officially released China’s first supply chain policy,stating that it is "to build a smart supply chain system with big data support,network sharing,and intelligent collaboration." In April 2018,8 departments including the Ministry of Commerce jointly issued the "Notice on the Pilot of Supply Chain Innovation and Application".Under such a policy background,the trend of the asset-light model transformation in the supply chain management industry is becoming more obvious.This article selects China Coral Solution(hereinafter referred to as CCS),a pilot enterprise of supply chain innovation,as the research object.The company deeply cultivates the coal supply chain management industry and completed the backdoor listing in 2012.After the listing of CCS,it started the asset-light transformation from the model of self-operating in the whole industry chain,which enabled it to achieve growth during a period of sluggish coal market.The coal e-commerce platform launched by CCS—— "Yimei" also achieved a leading position in the industry.However,from the perspective of the company’s economic consequences,its asset-light transformation has shifted to high value-added links in the industry chain,but the company’s profitability has continued to decline.Compared with other companies in the industry,CCS has lost its original advantages,and the corporate value has not been better improved,but gradually declined in the later stages of transformation.Therefore,this article will explore the economic consequences of the company’s asset-light transformation? Further analyze the reasons for its economic consequences.Why did the company have such economic consequences during the transformation process?This article is mainly based on industrial value chain theory,"smile curve" theory and strategic matching theory.This article will conduct a multi-dimensional evaluation of the economic consequences of the company’s asset-light transformation.Further,this article will explore the rationality of the company’s strategic arrangements during the transformation period,the matching degree of the functional strategies and the degree of realization of the transformation strategy,etc.,and analyze the reasons for its economic consequences.The existing research on the asset-light model of enterprises is mainly carried out from the evaluation of this business model.The research content includes its impact on financial performance or corporate value,the financial characteristics of light assets,operating modes,and financial risks.This article will mainly conduct a multi-dimensional evaluation of the economic consequences of the case company’s light asset transformation,and analyze the causes of the company’s strategic arrangements during the strategic transformation period.Through the above analysis,this article can provide suggestions for the company’s future strategy adjustment and optimization.In addition,this article can summarize the company’s experience and deficiencies,and provide a certain reference significance for more industries in the industry to adopt a heavy asset model to build a supply chain system and transition to a light asset model.