Analysis Of Xiaomi Group's Financial Strategy Based On Harvard Analysis Framework

In recent years,China 's Internet has been booming,policies have been slanted,and various “Internet +” industrial chains have emerged in an endless stream.At the same time,however,the development and competition of various Internet companies have reached a stage of intense heat.At the end of 2018,various experts said that Internet companies have entered the "cold winter" stage.In the era of the advent of5 G technology,the upgrading and transformation of Internet companies have become inevitable.Xiaomi group,as a representative of emerging Internet companies,has completed the listing in Hong Kong in just eight years since its establishment.In the early stage,it relied on the explosive growth of smart phones and Internet dividends,and began to seek strategic transformation after experiencing a trough in 2016.In order to explore the opportunities and challenges faced by Internet enterprises in the current economic and market environment,this paper selects Xiaomi group as a case,under the background of 5g and the Internet of things era,based on the Harvard analysis framework,selects Xiaomi's financial statement data from 2016 to 2018 as the main analysis content,through the analysis of Xiaomi group's strategic deployment,accounting policies and financial data Combining with the financial strategy matrix,this paper analyzes Xiaomi's financial strategy,finds out the problems in the selection and implementation of Xiaomi's financial strategy,and puts forward suggestions.From the strategic point of view,this paper uses PEST model and Porter five forces model to analyze the external environment,industrial environment and its own advantages and disadvantages of Xiaomi group.From the accounting point of view,it analyzes whether the important accounting policies of Xiaomi group are reasonable.From the perspective of financial data,select the financial data of the top ten listed Internet enterprises in 2019,and make a horizontal comparison with the financial indicators of Xiaomi group to measure the comprehensive financial performance of Chinese Internet enterprises.From the perspective of prospect,this paper analyzes the opportunities and challenges brought by 5G and Internet of things technology to Xiaomi,and forecasts Xiaomi's business strategy and financial situation.I hope this paper can give some inspiration to Xiaomi and other Internet enterprises.Finally,based on the financial situation of Xiaomi during 2015-2018,a financial strategy matrix was constructed to further analyze the implementation of Xiaomi's financial strategy.The analysis results of this paper show that although Xiaomi's current financial strategy is consistent with the overall strategy and its business model goals,there are still certain problems in the implementation and strategy implementation results.At present,the profitability spread of Xiaomi,increasing income and not increasing profits lead to financing pressure and Financing costs increase,and the proportion of current liabilities is too high will bring corresponding financial risks to the company.Based on the above problems,this paper proposes that Xiaomi improves the capital structure,reduces the proportion of current liabilities,and adopts equity financing and other financial strategy improvement methods,hoping to provide a valuable reference for Xiaomi and other Internet to formulate or improve financial strategies.