Research On The Profit Model Of Bilibili Company Based On The Value Chain Theory

In recent years,mobile phones have become a standard part of modern life and internet businesses have gained momentum,thus placing higher demands on the use of existing resources and the effectiveness of available funds in the online video industry.However,the profitability model of China’s online video industry has the problem of poor sustainability.In order to maintain the benign development of the industry and accelerate the transformation of the profitability model of enterprises,the profitability model analysis from the perspective of the whole value chain can provide an important guarantee for the revitalisation of the online video industry.Based on this,this paper firstly compares the literature from four aspects: value chain theory,profit model,profit model of online video enterprises,and the relationship between value chain and profit model,understands the traditional profit model and its pros and cons,studies the profit model from the perspective of value chain and examines its pros and cons,clarifies the existing research findings and research directions,and clarifies the research objectives of this paper;secondly,introduces the selected company Bili Bili The paper then introduces the development history of the selected company,the main features of the platform,the main businesses of the platform and the process of changes in its profit model;again,identifies three major problems in the internal value chain: the concentration of the range of profit points,the dysfunctional revenue structure and the lagging platform operations;and in the external value chain: the poor fidelity of profit targets,the low bargaining power with suppliers and the strength of competitors in the same industry.Finally,corresponding countermeasures are proposed to address the problems summarised above.Firstly,the internal value chain was upgraded and optimised.Firstly,headline IP were purchased to attract traffic to the platform and enrich the product range of Bili Bili;secondly,the revenue structure was adjusted from two angles: enhancing the layout of the live streaming business and enriching the advertising product matrix,thereby enhancing the breadth of Bili Bili’s sales;thirdly,the ecology of UP owners was used to leverage the platform to break the circle of development.Secondly,to extend and expand the external value chain,firstly,to develop diversified derivative products to attract consumers;secondly,to layout Story Mode to enhance the bargaining power of the enterprise;and thirdly,to upgrade the traditional business to enhance the competitiveness of the enterprise.The study of the profitability model of Bili Bili from the perspective of the value chain can help realise an effective connection between Bili Bili and the development of the Internet,and can overcome the problems of Bili Bili’s existing profitability model to a certain extent.At the same time,the successful experience of the transformation of the profit model of Bili Bili will provide inspiration for online video platforms that have transformed their profit models or are still in the process of exploring their profit models,improve the quality of content and the efficiency of the use of funds on online video websites.