Optimization Of Profit Model Of P Corporation From The Perspective Of Value Chain

In recent years,against the backdrop of the global trendy toys ushering in the era of wind,China’s trendy toys market has grown very rapidly,making it a significant market focus as it gradually moves from a niche market to a mass market.The market size of the trendy toy industry will continue to expand due to its growing consumer base,which shows a very promising future,and a large number of competitors will flood into the industry.In order to have a competitive advantage in the future market,trendy toy companies need to analyze and optimize their profit models to ensure that they can survive and grow.Profitability model can identify and manage the value of business elements to help companies create profits.At the same time,the value chain is a value-creating system consisting of several value-creating activities,and the profit model both follow the principle of "value creation".Therefore,from the perspective of value chain,it is possible to better analyze and optimize the profitability model of an enterprise to achieve the goal of increasing profit and value simultaneously,which is conducive to improving the competitiveness of an enterprise.As a leading enterprise in China’s trendy toy industry at present,Company P has developed from an unknown department store to a listed enterprise,which proves that it can play a certain demonstration role in this field.Therefore,taking Company P as an example,this paper firstly compares the research results on value chain and profit model at home and abroad,and analyzes the five elements of Company P’s profit model(profit object,profit point,profit source,profit lever,and profit barrier)in detail based on the theory of profit model.Secondly,based on value chain theory,"smile curve" theory and value creation theory,the value activities in the profit model are categorized according to the three dimensions of the value chain,and the value chain is analyzed in detail with the data,and the problems of the current profit model are proposed.Finally,on the basis of the above analysis,the three dimensions of the value chain are used to propose suitable suggestions for the optimization of the profit model of company P.Through the study,it is concluded that Company P has been committed to building a trendy toy industry chain with IP as the core to form a competitive barrier in the industry.Under the current profit model,Company P has achieved high quality development,indicating that its profit model has advantages,but the sudden evaporation of market value and decline of profit in the past two years indicate that its profit model has some problems.Company P should deepen its IP creation,enhance its own IP creation ability,use content for emotional empowerment,carry out cross-discipline cooperation,insist on quality assurance,and improve its service system,so as to improve the enterprise value chain system and form a better profit model of trendy toy enterprises.