Profitability Analysis Of Sf Holdings Under The Differentiated Competition Strategy

With the continuous improvement of China’s information network infrastructure and the popularity of mobile 4G networks,China’s e-commerce has developed rapidly,and the express delivery industry has also grown rapidly.According to the "2021 Postal Industry Development Statistical Communiqué" issued by the State Post Bureau,the national express delivery business volume reached 108.30 billion pieces in 2021,breaking through 100 billion pieces for the first time,with an increase of 29.9% year-onyear;The revenue of express delivery business reached 1,033.23 billion yuan with an increase of 17.5% year-on-year.In 2021,the volume and revenue of express delivery business was 46 times and 18 times that of 2010,respectively with an average annual compound growth rate of 42% and 30%.By the end of 2021,in China the average person has 77 pieces of express delivery per person,express delivery business accounted for more than 60% of the global express parcel market.At present,the express delivery industry has basically formed the SF Holding model based on network-based direct operation,the " Yunda + YTO + STO + ZTO " model based on hub transit self-operation and terminal network franchise,and the JD Logistics model based on the warehouse distribution model based on the on the JD mall platform.As the first express delivery company to adopt the direct operation mode,SF Holding focuses on the high-end market,wins the recognition of customers with safety,timeliness and service,establishes a brand image,and its differentiated competition model makes it the only express delivery company with 100 billion revenue in China and the fourth largest express delivery company in the world.In 2022,SF Holdings has become the first private express delivery company to enter the world’s top 500 in China.The thesis uses the literature induction method and case analysis method to analyze the differentiated competition strategy of SF Holding,and discusses its impact on profitability from four aspects: brand differentiation,operation model differentiation,industrial layout differentiation and technology research and development.and finding that SF’s profitability is generally good,And the thesis draw the following conclusions :(1)Brand differentiation and operation model differentiation help SF Holding build brand image,form certain competitive barriers,and make its operating income always rank first among private express companies.Obtain stable net cash flow,which plays an effective role in supporting its expansion of asset scale and profitability;(2)As the express delivery industry enters a stage of rapid development,the competition between enterprises intensifies,the competitive advantage of brand differentiation weakens,the market share passively declines,and the revenue growth rate of time-sensitive parts slows down;(3)The diversified industrial layout has enabled SF Holding to obtain the "second curve of growth",and the overall revenue has continued to grow rapidly;(4)The asset-heavy direct operation model and diversified industrial layout have led to large capital expenditure,high asset-liability ratio,and low return on net assets for a long time;(5)SF’s continuous R&D investment will help the overall supply chain reduce costs,improve efficiency and improve operating efficiency;(6)On the whole,the differentiated competition strategy helps SF improve profitability,of which the differentiation of operating models has the greatest impact on SF’s profitability.