Research On The Strategy Of Improving Pinggao Electric’s Profitability From The Perspective Of Value Chain

The "Fourteenth Five-Year Plan" period is the first five years of China’s new journey to build a socialist modern country in an all-round way.It is also an important window period for energy transformation since China put forward the "carbon peak,carbon neutral" goal.With the "double carbon" goal and the construction of a new power system,the green,low-carbon and digital economy will become the main track with huge market prospects in the future.However,due to the impact of the macro economy,enterprises are faced with the dual challenges of industrial reform and market competition.The electrical equipment manufacturing industry generally has the problems of rising costs,falling gross profit and increasingly fierce competition.In recent years,some domestic private enterprises have been involved in the medium and low voltage product market with low technical barriers.Multinational companies have gradually entered the Chinese market with their brand and capital advantages,and have intensified the competition in conventional products and high-end products.As a result,the operation of electrical equipment manufacturing enterprises is facing tremendous pressure,and the profitability has fluctuated to varying degrees.Therefore,this paper takes Pinggao Electric,whose performance has been declining for five consecutive years from 2017 to 2021 in the electrical equipment manufacturing industry,as the case study object,and analyzes the profitability of Pinggao Electric based on the value chain theory,core competitiveness theory and relevant analysis content of profitability.After introducing the basic situation of Pinggao Electric and the structure of its value chain,first of all,based on the financial perspective and combined with the financial ratio analysis and Du Pont analysis system,the current situation of Pinggao Electric’s profitability was preliminarily analyzed,and then from the perspective of the value chain,the main links of Pinggao Electric’s business activities were analyzed in detail,on the one hand,the research and development links,production links Analysis of human resources and marketing;On the other hand,it has made a deep analysis of the upstream and downstream links in the external vertical value chain,and made a comparative analysis of the competitive enterprises in the same industry in the horizontal value chain,which has further clarified the existing problems of Pinggao Electric’s current profitability,that is,it has found that there are problems in the R&D investment,cost control,personnel structure,marketing strategy,channel maintenance and other aspects of Pinggao Electric’s various links,Finally,it puts forward the improvement countermeasures of "intensive cultivation of main businesses and related diversification",enhancing core competitiveness and enhancing profitability.