Evaluation And Optimization Of The Asset-light Profit Model Of Three Squirrels Co.,Ltd

With the continuous development of the digital economy,China’s traditional casual food retail industry has slowed down.Unlike traditional casual food retailers that adopt heavy asset operations,casual food retailers in the new era are increasingly favouring an asset-light profit model that outsources non-core aspects such as production and focuses on their core business.This paper selects a representative casual food retailer,Three Squirrels,as a case study,and analyses and evaluates the asset-light profit model of Three Squirrels Co.,Ltd based on theories such as the smilling curve theory and the balanced score card,then makes suggestions for optimisation.Firstly,this paper introduces the background of the casual food industry and the development status of Three Squirrels,analyses the current situation of Three Squirrels’ asset-light profit model from the perspective of the components of the profit model,and introduces how Three Squirrels’ asset-light profit model works from the perspective of the value chain;secondly,using the balanced scorecard as a tool,the four dimensions of finance,customers,internal business processes and learning and growth are used to evaluate Three Squirrels’ Secondly,using the Balanced Scorecard as a tool,the paper evaluates the asset-light profit model of Three Squirrels in four dimensions: finance,customers,internal business processes and learning and growth,and points out the problems of its profit model at this stage.Finally,the paper proposes suggestions for optimising the asset-light profit model of Three Squirrels based on the above problems.Through the evaluation and optimisation of the asset-light profit model of Three Squirrels,the following conclusions are drawn.Firstly,the asset-light profit model of Three Squirrels is mainly reflected in its outsourcing of low value-added production and processing processes and its independent grasp of higher value-added processes such as research and development and marketing at both ends of the value chain.The main components of its profit model are profit targets-online and offline customers,profit points-products and services,profit measures-marketing capabilities of the brand,and profit barriers-IP-based brand effect,digital supply chain management and efficient online operation capabilities.Secondly,at the financial level,the main problems with the current profitability model of Three Squirrels include declining profitability,low gross margins,lack of revenue growth and insufficient net operating cash flow;at the customer level,Three Squirrels also suffers from a consumer trust crisis caused by frequent product quality and food safety issues;at the internal business process level,Three Squirrels is highly dependent on online channels,resulting in rising operating expenses year after year At the level of learning and growth,the proportion of investment in research and development is very low,lagging behind similar enterprises,with homogeneous and highly substitutable products and insufficient long-term market competitiveness.Thirdly,based on the above analysis of the problems,this paper gives the following suggestions for optimising the asset-light profit model of Three Squirrels: at the financial level,improve the efficiency of capital operations,reduce operating expenses and improve gross margins;at the customer level,strengthen product quality supervision,implement a traceability system,focus on the conversion of online and offline users,and realise the true integration of online and offline;at the internal business process level,further give full play to the supply chain At the internal business process level,we will further leverage the advantages of digital management,accelerate the balanced layout of all channels and improve overall operational efficiency;in terms of corporate learning and growth,we will increase investment in research and development in product,marketing and digital construction,optimise product structure,innovate marketing models,strengthen digital construction and improve our core competitiveness.