Research On The Profit Model Of Songcheng Performance From The Perspective Of Value Chain

Cultural tourism has a significant impact on China’s economic development.In recent years,the government has continuously introduced relevant policies to promote the prosperity and development of cultural tourism.However,many cultural tourism enterprises face the risk of losses or even bankruptcy due to the excessive number of competitors in the industry,insufficient core competitiveness,and low profitability.As the "top performer in tourism",Songcheng Performance is a leading enterprise in cultural tourism.It has been rated as one of the "Top 30 Cultural Enterprises in China" for eleven consecutive times,and has unique business operations.This article takes Songcheng Performance as an example,starting from the perspective of the value chain,to study the characteristics of its profit model,in order to provide reference for other enterprises.This article analyzes the business operations and profit models of Songcheng Performance based on the theory of value chain,the theory of five elements of profit model,and the theory of Smiling Curve.Songcheng Performance focuses on "theme parks+tourism performances" as its core business.Firstly,it takes on-site performance projects operated independently in Hangzhou as the starting point for the company’s development,and then develops into selfoperated on-site performance projects replicated in different places.Finally,it expands to design and planning services for brand output.The company’s performance is outstanding,and its profit model has certain representative significance among cultural tourism enterprises.This profit model focuses on on-site performance and design planning as profit points,ticket revenue and design planning fees as profit sources,marketing and brand promotion as profit levers,IP and business models as profit barriers,and tourists and partners as profit targets.On this basis,this article analyzes the five value chain links of the case company,including content creativity,production and manufacturing,marketing and promotion,communication channels,and consumers,and studies the impact of these links on the profit model.Finally,this article evaluates the effectiveness of the profit model of the case company through financial data analysis,profit level analysis,and profit quality analysis.Research has found that the reason why Songcheng Performance has shown a high level of profit,strong profitability,and good profit quality are as follows: Songcheng Performance firmly controls the high value-added links in the value chain,and expands its own profit points and sources in the content creativity and communication channels;make good use of marketing and promotion links to leverage one’s own profit leverage;adhere to the source of value creation and establish a solid profit barrier in the content creativity process;fully leverage the feedback and interaction of profit sources on the value chain.However,there is still some room for improvement,and this article provides suggestions for this.