Research On The Profit Model Of Huawei Company

The profit model is the key factor for the company to guarantee future cash flow,safeguard the investor's rights and interests,and avoid the company entering the blind expansion misunderstanding.Since value creation is the essence of the profit model,the main line of profitability is the key to identifying the path of value creation.The communication equipment manufacturing industry is a High-speed development industry,and it is especially important to identify the profit model.As the leading enterprise,Huawei's profit model has experienced the profit model of the agent in the initial stage.The medium-term technology-based manufacturer profit model has now formed the business,supplier business and personal business.The ICT provider profit model of the relatively mature international operation of the core business.Therefore,studying its current profit model,identifying problems and giving corresponding improvement suggestions will have a practical significance for improving Huawei's profit model and ensuring its long-term development,and will also have a strong guiding significance for the entire industry.This paper takes Huawei's current profit model as the research object,and uses the classic theory of profit model proposed by Adrian Slywoski as the research basis of this paper.According to its viewpoint,combined with the theory of value chain and value creation,it combines The author's understanding proposes the concept of a profit model and the corresponding path of value creation.The full text revolves around the core of the profit model of value creation.By adopting the entropy method and approaching the ideal value method,Huawei's financial data for the past five years is selected as the evaluation object.and it is vertical and horizontal with itself and with ZTE and Nokia.Contrast and use Porter's five-force model as a supplement to evaluate Huawei's existing profit model and find that Huawei's current profit model is good for the entire industry,but it still needs to be improved.According to the evaluation results,Huawei's value search,value development,value realization and value-defending value creation path are analyzed.It is found through analysis that Huawei's existing profit points and profit sources are properly selected,profit leverage and profit barriers are obvious.At the same time,however,it was found that Huawei still lacks control over the potential risks of existing profit sources,the competitive advantage of profit points is not obvious?the profit leverage effect is not implemented,and the efficiency of building profit barriers is too low.Suggested improvements for these issues.Finally,based on the above content,it is concluded that Huawei's unique profit model is the ICT supplier profit model of international operation,and the successful experience of Huawei company gives other companies in the same industry the corresponding practical enlightenment in value creation.At the end of the paper,the paper lacks and looks forward to the paper.