Study On Business Model And Financial Performance Of Manufacturing Industry Champion Enterprise

Private enterprises play a vital role in making China the world’s second largest economy.They not only provide a large number of jobs,drive local economic development and increase local revenue,but also create a diversity of products and services,increase economic diversity,promote market competition,prevent monopoly and over-concentration,and improve the efficiency and effectiveness of the overall market.However,the difficulties encountered by private enterprises in China,such as serious homogeneous competition,difficulties in profitability,lack of talents and insufficient management,should not be underestimated,and our government has introduced many policies to support private enterprises.Among the many private enterprises,there is a category of enterprises known as " Individual champions",which,have a very high market share and great strength in their own niche areas of operation.At present,there are 47 million private enterprises in China,of which less than 10,000 are " Individual champions",so the potential development potential is huge.Among the many industries,the automotive industry,as one of the pillar industries of the national economy,has attracted much attention.Among them,the auto parts industry is an important part of the automotive industry,in the middle and upper reaches of the entire automotive industry chain,and has an extremely strong correlation with the automotive industry.With the development of the automobile industry and technological advancement,the auto parts manufacturing industry is also developing and growing,with the ceiling of the industry still far away and a broad development prospect.As a leading enterprise in the auto parts manufacturing industry,Fuyao Glass Industry Group Co.,Ltd.is a true individual champion enterprise with the market share of its main product auto glass being the first in China and the top three in the world.Therefore,based on theories related to individual champion companies,business models and financial performance,this paper will present an overview of the case company,using Fuyao Group as a case study and incorporating the business model of individual champion companies in general.When analyze the business model,this paper analyses the elements of the business model of Fuyao Group based on the business canvas theory.As for the financial performance,this paper examines the financial performance of the case company based on the analysis of financial indicators,combined with relevant non-financial indicators,while making a cross-sectional comparison within the industry.The EVA analysis is used to calculate the EVA value and to compare the EVA value with traditional financial indicators.Factor-analysis was used to comprehensively score and evaluate the financial performance of Fuyao Group and finally to analysis the market value of Fuyao Group to more objectively evaluate the impact of the company’s business model on its financial performance and the true quality of the company’s effectiveness.This paper first explores the reasons for the success of the individual champion enterprises in the Chinese economic environment in terms of business model and financial performance,and then presents its shortcomings in the development path and provides corresponding suggestions;it not only suggests a better development direction for Fuyao Group itself,but also provides reference and reference for other private enterprises in distress in China,helping them to learn the strategic logic and business model in the development process of individual champion enterprises,and ultimately enabling more private enterprises to form and maintain certain differentiated competitive advantages in the context of global competition,contributing to the stable and healthy development of China’s economy.