Research On Financial Elasticity In The Business Model Transformation Of Baofeng Group

With the arrival of the era of big data on the Internet,the competition in China's market is becoming more intense.Enterprises are also urgently in need of the transformation of strategy and business model to be in line with the changing social environment,and with the Internet,big data and intellectualization.In the face of complex economic environment and fierce peer competition,in order to achieve better development,enterprises need to formulate strategies and business models in line with their own situation.At the same time,the transformation of business model often requires great capital investment,so more and more business managers focus on financial flexibility.Enterprises improve financial flexibility by reserving idle cash flow and unused debt space.Therefore,appropriate financial flexibility can provide financial support for enterprises in the process of transformation,and provide a firm foundation for successful transformation of enterprises.This paper mainly uses case analysis method.After defining and introducing the core concepts and related theoretical basis,Beijing Baofeng Technology Co.,Ltd.is taken as a case company for specific analysis.Firstly,it introduces and analyses the business strategy and business model chosen by Storm Group,measures and analyses its financial elasticity,and compares the financial elasticity before and after the implementation of its business model,and draws a conclusion that the lack of financial elasticity of Storm Group is related to the implementation of its business model;secondly,it is caused by specific analysis.The financial elasticity of Storm Group is rooted in the choice of its business model.At the same time,the frequent pledge of large shareholders,frequent related party transactions,shareholders' reduction and other acts intensify the tension of its financial elasticity.Through the analysis of this paper,we can basically draw a conclusion: the demand for capital in the transformation of business model may lead to the lack of financial flexibility of enterprises,which will lead to the elimination of enterprises by the market;the "one voice" behavior of actual controllers will also aggravate the deterioration of financial flexibility;when enterprises expand their business,they will invest in it.The neglect of cost is not advisable,and will aggravate the deterioration of financial elasticity of enterprises.